Which of the following is a disadvantage of modular organizations?
A) They cost significantly more to run than traditional organizations.
B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
C) They are slow because members cannot combine their efforts to meet customers' needs.
D) They are unstable and have temporary relationships in a network alliance.

Question

Quizplus · Accepted Answer

Modular organizations outsource their key business activities to other companies, which can result in a loss of control as they depend on external suppliers. This can create challenges with communication, coordination, and quality control, which in turn, can negatively impact the overall effectiveness and efficiency of the organization.

Which of the Following Is a Disadvantage of Modular Organizations