Cost Minimization and Organizational Structure
A small business sells computers directly to customers, pursues minimal innovation, and spends little on advertising. The company's work environment is highly informal and is best described as organic. Why is this organizational structure atypical for a cost-minimization strategy?
A
Cost-minimization strategies typically involve significant expenditures on marketing and advertising.
B
Cost-minimization strategies typically rely on established sales channels.
C
Cost-minimization strategies generally require strong innovation.
D
Cost-minimization strategies usually rely on a strong hierarchy.
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