Question

Cisco Systems uses a differentiation strategy. It offers its customers the latest in routers and switches. Cisco products may cost a bit more, but customers believe they are worth every penny. Cisco Systems will be more effective if it hasan organic structure. Which of the following reasons explain this?
a. Narrower spans of management and centralized decision making offer improved product control.
b. Decentralized decision making allows for greater flexibility in meeting customer needs.
c. Vertical communication flows ensure that decisions are standardized throughout the company.
d. Shorter chains of command and horizontal communication allow for increased innovation.

Answer 1

Answer:

The correct answers are letters "B" and "D": Decentralized decision making allows for greater flexibility in meeting customer needs; Shorter chains of command and horizontal communication allow for increased innovation.

Explanation:

Organic structures are organizational decentralized working designs mainly used for industries that offer products changing rapidly. These organizations are characterized for processing, analyzing, and distributing information at a very fast pace since their chain of command is short. The last also help the company to be one step closer to consumers which allows them to understand more their needs.

Answer 2

Answer:

The correct option is B: Decentralized decision making allows for greater flexibility in meeting customer needs.

Explanation:

The fact is that as organization tend to be more organic, the chain of command also become organic, and the decision making of such company becomes decentralized, which then allows for much more flexibility in meeting the needs of customers. Option A is wrong because centralized decision making involves placing stringent controls on the methods of doing work with a purpose of achieving economies of scale.