$4.$ Strategy and structure

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 has structure. Which of the following reasons explain this? Check all that apply.

Narrower spans of management and centralized decision making offer improved product control.

Vertical communication flows ensure that decisions are standardized throughout the company.

Decentralized decision making allows for greater flexibility in meeting customer needs.

Shorter chains of command and horizontal communication allow for increased innovation.

Your great$-$great$-$grandmother left you her recipe book. It contains amazing, delicious cake recipes, and you are certain you can make a fortune with them if you just set up your bakery right. You are considering three possible designs for your bakery:

Design $1$

Design $2$

Design $3$

A factory in which assembly$-$line workers create low$-$cost$,$ standardized cakes to be sold in grocery stores A factory in which all cakes are created by machines; technology will enable you to shift from cake to cake as customer needs change A personalized wedding cake business in which you will create custom delicacies for your clients

According to Joan Woodward, is classified as a small$-$batch production company.

According to Joan Woodward, which of the following conclusions is most likely to be true?

A small$-$batch production process will allow you to charge the maximum amount per cake.

The most effective design for a bakery that is using a differentiation strategy is mass production.

Bakeries that are operating in a rapidly changing, highly competitive environment should choose a mass production design.

Managers are most likely to spend the most time with an individual employee in a bakery that has a mass production design.