Why do organizations form conglomerates? Is there an appropriate ...

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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]

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

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Excellent

[Alyson.hiatt@yahoo.com]

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