FSOT Full Test Bank

Category - Management

What should be the relationship between a corporate strategy and corporate structure?
  1. Structure should be designed to implement strategy.
  2. Strategy should be designed with the structure in mind.
  3. Strategy and structure should be developed independently.
  4. There is no relation because strategy changes more often than structure.
Explanation
Answer: A - Corporate structure should be designed to implement corporate strategy. Of course, there is a cost associated with reorganization, which is another reason why it is vital to develop an effective overall corporate strategy from the beginning.
Was this helpful? Upvote!
Login to contribute your own answer or details