Multiple Choice
Refer to the scenario below to answer the following questions.
Restructuring at Prairie Farm Equipment (Scenario)
Jim Johnson is the CEO of Prairie Farm Equipment Corp, a major Canadian manufacturer. Prairie has been in business for more than 100 years and has been very profitable. Today, the company has a tall structure with formalized communication channels and rigid hierarchical relationships. All major decisions are made by Mr. Johnson. This arrangement has worked well until recently, when the company began to encounter some major global competition. Foreign companies have begun to export new, lower-priced products into the Canadian market. At the same time, foreign markets appear to be opening their doors to more Canadian products. A few days ago, one of the vice-presidents presented some exciting news about a major market opportunity overseas. Several managers were now working on an international expansion proposal to be presented at the next board meeting. As the company's strategy was beginning to change, Mr. Johnson realized that its structure would also need to change. But change how? The company was very large and used routine technology to produce its products. What should he do?
-Which of the following contingency factors is having the biggest impact on the need for structural changes at Prairie?
A) size
B) technology
C) environmental uncertainty
D) culture
E) chain of command
Correct Answer:

Verified
Correct Answer:
Verified
Q42: The purpose of organizing is to arrange
Q88: The trend in recent years has been
Q102: An organic organization is low in centralization.
Q142: The structure of Jumbo Transport Corporation is
Q144: explain centralization, decentralization, and employee empowerment. How
Q145: Which one of Fayol's 14 principles of
Q146: Refer to the scenario below to answer
Q147: list the three common traditional organizational designs.
Q151: The matrix structure violates the classical organizing
Q152: Traditional organizational designs include the simple structure,