Compare and contrast U-form and M-form organizational structures. What impact do
ID: 1130265 • Letter: C
Question
Compare and contrast U-form and M-form organizational structures. What impact does advertising have on sales? Explain what is meant by ‘competition amongst the few’ and provide details of two models that attempt to capture firm behaviour in this type or market structure/environment. Why do barriers to entry exist in some industries? How do barriers to entry influence the strategic decisions made by incumbent firms? Explain the principal agent problem and consider how this is likely to influence pursuit of shareholder objectives and profit maximisation. Compare and contrast U-form and M-form organizational structures. What impact does advertising have on sales? Explain what is meant by ‘competition amongst the few’ and provide details of two models that attempt to capture firm behaviour in this type or market structure/environment. Why do barriers to entry exist in some industries? How do barriers to entry influence the strategic decisions made by incumbent firms? Explain the principal agent problem and consider how this is likely to influence pursuit of shareholder objectives and profit maximisation. Compare and contrast U-form and M-form organizational structures. What impact does advertising have on sales? Explain what is meant by ‘competition amongst the few’ and provide details of two models that attempt to capture firm behaviour in this type or market structure/environment. Why do barriers to entry exist in some industries? How do barriers to entry influence the strategic decisions made by incumbent firms? Explain the principal agent problem and consider how this is likely to influence pursuit of shareholder objectives and profit maximisation.Explanation / Answer
1.
U form organizational structure is the traditional structure that is organized on the basis of different functions such as marketing, finance, HR and operations, whereas the M form organizational structure involves the smaller firms within the one organizational setting that are responsible for their own operations and profitability. Here, U form structure is more centralized in nature, but M form structure has relatively more autonomous decision making authorities among the different strategic business units. Further, the U form organizational structure has one central unit that takes the decision of strategic initiatives to be followed by the different functions. But, M form organizational structure gives independence to SBUs to take their own decisions within the broader perspective of the organizational goals and objectives.
2.
Advertising helps in building communication with the target audience and communicate the key messages to prepare the customers for buying the products. As a result, the sales increase. It means that the advertising helps in building new sales for the company. Besides, the advertising also educates new and potential customers and spread awareness. As a result, the new market is built for the products and services of the company. It also facilitates the sales activities of the company. Therefore, It can be said that advertising not only helps in creating more sales opportunities in the short run, but also it builds a market for sales development in the long run.
Pl. repost other unanswered questions for their proper answers!
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.