Question

The Company is experiencing an increase in competition, and at the same time they are building more production facilities in Southeast Asia. In this scenario, the top management team is most likely to

a. give lower-level managers the authority to make decisions to benefit the firm.
b. pull decision-making responsibility from low-level management, taking it on themselves.
c. restructure to reflect a more bureaucratic, stable organization.
d. rid themselves of all buffering product.
e. increase the cost of their products.

Answer 1

The Company is experiencing an increase in competition, and at the same time they are building more production facilities in Southeast Asia. In this scenario, the top management team is most likely to  (a) give lower-level managers the authority to make decisions to benefit the firm.

Explanation:

From the given options the firm cannot pull decision-making responsibility from low-level management, taking it on themselves because we can see that the company is experiencing an increase in competition  and it is also expanding its production facility so the upper management does not have time to involve at smaller decisions as there are many big decision to be taken.

So the company decides to give lower-level managers the authority to make decisions to benefit the firm.