In loosely coupled organization structures
A) coordination is achieved through adherence to shared objectives and common standards.
B) the possibility for achieving synergies is high.
C) the firm reduces its chance of developing a product that has a price-to-value ratio that attracts customers.
D) the overhead and administrative complexities of maintaining a wide scope of activities are increased.

Question

Quizplus · Accepted Answer

Loosely coupled organization structures rely on shared objectives and common standards to achieve coordination among different units or departments. This allows for flexibility and autonomy while still working towards a common goal.

Answer: B
 Loosely coupled organizations allow for more collaboration and communication between different units or departments, leading to an increased possibility of achieving synergies or finding new opportunities for growth.

Answer: C
 Loose coupling is not directly related to product development or pricing strategies, and there is no evidence to suggest that it would increase the likelihood of developing a product with an unfavorable price-to-value ratio.

Answer: D
 Loosely coupled organizations often have less administrative overhead since they allow for greater autonomy and flexibility. This may actually reduce the complexities of maintaining a wide scope of activities, rather than increasing them.

In Loosely Coupled Organization Structures