Which of the following statements is true regarding an organization following a low-cost strategy?
A) Low-cost organizations typically use complex organizational structures.
B) Typically, low-cost organizations use centralized decision-making.
C) The organizational structure used by a low-cost organization generally has higher integration than that used by a differentiator.
D) An organic structure is more suitable for a low-cost organization than a mechanistic structure.

Question

Quizplus · Accepted Answer

Typically, low-cost organizations use centralized decision-making to ensure cost control and efficiency in operations. Complex organizational structures and high integration may increase costs, which goes against the low-cost strategy. The choice between organic and mechanistic structures depends on the nature of the organization's operations and its competitive environment, rather than the low-cost strategy alone.

Which of the Following Statements Is True Regarding an Organization