Strategy Test 3 chapter 8

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  1. Information processing requirements?
    *Grow with the firm
  2. What is bounded rationality?
    people have a limit on their capacity to handle information.
  3. What is the advantage of the M-form structure?
    each independent division can carve out its own destiny in its product-market and focus on making decisions that best suit its specific competitive environment.

    *Board of directors and senior executive that oversees all
  4. What is The key to an effective agency relationship?
    is for the interests of the two parties to be aligned.
  5. What structure provides
    a way for the interests of owners to be monitored?
  6. What is Zero-based budgeting?
    • Here, capital allocation requests are ranked and requests are funded from the “most
    • important” onwards till the firm runs out of funds.  The “zero-base” refers to the fact that in each funding period every division starts with a zero-base, meaning there is no
    • funding for a project automatically because it was funded in the past.
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Strategy Test 3 chapter 8
2013-04-07 18:42:06
Strategy Test chapter

Strategy Test 3 chapter 8
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