Question Details

Functional designs hold down administrative costs 



TRUE/FALSE
1.	When the organization has a narrow product line and does not have to respond to the pressures of serving different geographic areas or types of customers the network design may be effective.



	2.	Place design involves establishing an organization's primary units geographically while retaining significant aspects of functional design.

	

	3.	Companies that are marketing-intensive and need to respond to local market conditions or customer needs typically use functional designs.



	4.	To address cultural and legal differences in various countries and the lack of uniformity among customers in different geographic markets, many international firms use place design.


	5.	Functional designs hold down administrative costs because everyone in a department shares the training, experiences, and resources needed to perform that function.





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