Author Question: Why do organizations form conglomerates? Is there an appropriate organizational design for a ... (Read 57 times)

cool · **on:** Jul 7, 2018

Why do organizations form conglomerates? Is there an appropriate organizational design for a conglomerate?

What will be an ideal response?

Question 2

People who scored low on the consideration dimension

A) are identified as impoverished management. B) are classified at middle-of-the-road management. C) are primarily concerned with getting the job done. D) dont care much about how they get along with their subordinates.

DHRUVSHAH · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

An organization forms a conglomerate when it diversifies by adding an entirely unrelated business or product to its organizational design. A company may form a conglomerate to diversify risk. By having unrelated businesses, the company can weather difficulties in one industry by succeeding in another. Companies also form conglomerates to establish a network of interdependent organizations. One business may purchase supplies from another member of the conglomerate and then sell its finished product to a third. All businesses in the conglomerate are separate companies with their own management teams, but are overseen by the same parent company leadership. Each organization can use a design that matches its strategy.

Answer to Question 2

D