Nigel Williams is the CEO of a toy manufacturing company. He constantl

QUESTION

Nigel Williams is the CEO of a toy manufacturing company. He constantly reviews his business model to look for ways to improve operations.

He recently learned that it would be less expensive for him to produce toys if he simply purchased each part from a different distributor, instead of making them at his factory, and had the parts shipped to his factory, where they would then be assembled. He also thinks that collaborating with independent firms will allow him more time for research and marketing, instead of production, to keep abreast of current trends. What type of organization is Williams considering?
A) horizontal organization
B) vertical organization
C) inverted organization
D) network organization
E) matrix organization

ANSWER

Answer: A
Explanation: A) A horizontal organization lends itself to collaboration with independent firms.