A corporate-level strategy of diversification allows a firm to use its core competencies to pursue opportunities in several industries and product markets. A firm engages in related diversification when it enters a new domain with similar or related core competence. Since these are all products of the food industry, there are related to the company’s core business. Choice (d) is the correct answer.

In the stable network, a large core company creates market- based linkages to a limited set of partners. These networks are more popular in relatively mature industries such as the automobile, home appliance, and heating, ventilation, and air conditioning industries.

The network form combines legally separate companies along with a value
chain into a loosely integrated whole. There are certain types of a network form: The
dynamic network, The stable network, The internal network and the virtual form as a highly developed version of the network form.

The Multidivisional form groups functions according to the specific demands of products, markets, or customers.

To be the most preferred bank by customers, shareholders and employees by maintaining the leading, pioneering and trusted position as a regional financial power is a vision statement of İş bankası. Correct answer is B. 

Simple forms include completely flexible relationships with limited differentiation and almost no hierarchy.

A matrix form enables implementing both divisional and functional forms, simultaneously. A matrix form often is the answer when organizations find that the functional, divisional, and geographic structures combined with coordination mechanisms will not work. The matrix is a secure form of coordination.

There are many advantages of the M-form. The M-form enables growing quickly; it provides better training for future executives; it offers enhanced responsiveness to the needs of customers; and it allows for accountability based on divisional profits. However, duplication and the challenge of coordinating across the different departments are the main disadvantages.

Organizations as Brains: Learning and sharing information and knowledge are the basic concepts of this metaphor, which emphasizes that organizations also learn from their surroundings just like human beings.

There are five significant forms of departmentalization: simple, functional (unitary), multidivisional, and matrix. Therefore, the correct option is B.

There are three advantages of the U-form. First, it allows high-degree of specialization. Second, it lowers costs by reducing duplication. Third, it eases communication and coordination for departmental managers.

At the same time, the possible difficulty of cross-department coordination, slow decision making, and narrowing the experience and expertise of the employees are some disadvantages of the U-form.

Main problem for the managers is to find ways to control dependency relations in the external relations. Developing long terms contracts with the critical suppliers is a frequent strategy, yet short term contracts are not classified among the relevant strategies. Thus, the correct answer is B. 

1. Organizations as Machines: This metaphor emphasizes the technical, hierarchical, rational, prolific, mechanical, and productive aspects of organizations. Organizations mostly defined by classical organizational approaches are defined by this metaphor.

2. Organizations as Organisms: By this metaphor, organizations relations with their surrounding is emphasized and their taking shape as a result of expectations and demands is expressed. And it is inspired by the general conceptual framework of systems and contingency theories.

3. Organizations as Brains: Learning and sharing information and knowledge are the basic concepts of this metaphor, which emphasizes that organizations also learn from their surroundings just like human beings.

4. Organizations as Cultures: Organizations formed by individuals coming together make those individuals create some values and gather around them. The common goal, vision, and values shared by individuals forming the organizations are defined by social constructionism using this metaphor.

5. Organizations as Political Systems: This metaphor is about the inclusion of organizations in the clash of power and interests and their resting some activities on political moves they make to find funding.

6. Organizations as Psychic Prisons: Organizations involve the unconscious, patriarchal, and repressed sexuality – both destructive and creative.

7. Organizations as Flux and Transformation: Organizations are complex, non-linear, self-organizing systems characterized by contradiction. Chaos and complexity theory explains this perspective.

8. Organizations as Instruments of Domination: Organizations are institutions in which people are alienated, oppressed and exploited, and they have to comply with corporate interests. Marxist studies explain this perspective.

Intensive technologies necessitate coordinating the specialized abilities of two or more experts in the transformation of a usually unique input into a customized output.

A multi-domestic strategy is oriented towards a high level of local responsiveness where products can be actively adapted to local preferences in each country market. Choice (d) is the correct answer.

The given explanation belongs to ‘operations’ which is one of the practical applications of organization theory. The correct answer is C.

Functional-Level Strategy Concerns with developing distinctive competencies by functional areas or departments as well as their ability to coordinate among various departments to provide competitive advantage. A cost leadership strategy is adopted when a firm tries to gain market share by keeping costs low compared to its competitors. Business-Level Strategy Concerns with the competitive aspect of a firm’s products or services in its industry or market segment. A differentiation strategy is adopted when a firm seeks to be unique and distinguish its products or services from others in the industry. Correct answer is E. 

Organizations as brains:Learning and sharing information and knowledge are the basic concepts, which emphasizes that organizations also learn from their surroundings just like human beings . 


Manufacturing Subenvironment, raw materials and suppliers are considered under the manufacturing division. Customers are considered under sales division, where else scientific journals are considered under the research & development division.

There are many advantages of the M-form. The M-form enables growing quickly; it provides better training for future executives; it offers enhanced responsiveness to the needs of customers; and it allows for accountability based on divisional profits. However, duplication and the challenge of coordinating across the different departments are the main disadvantages.