Three IT Companies Join Forces for IT Cloud Computing Industry Growth | Exam PK0-004

Type of Organizational Change: Generating New Business Opportunities in the Cloud Computing Sector

Question

Three IT companies have agreed to summarize their efforts as a common organization to generate new businesses in the IT cloud computing industry.

Which of the following is the type of organizational change described?

Answers

Explanations

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A. B. C. D.

C.

The type of organizational change described in the given scenario is a merger.

A merger is a type of organizational change where two or more companies combine their assets, resources, and operations to form a single, larger organization. The purpose of a merger is usually to increase market share, improve operational efficiency, reduce costs, or achieve strategic goals that would be difficult to accomplish independently.

In the given scenario, three IT companies have agreed to work together as a common organization to generate new businesses in the IT cloud computing industry. This means that they have decided to combine their assets, resources, and operations to form a single entity that will focus on the new business opportunity. The fact that they are working together as a single entity indicates that they have merged their operations and are no longer operating as separate entities.

Expansion refers to a type of organizational change where a company increases its size or scope of operations. This could involve adding new products or services, opening new locations, or entering new markets. While the scenario does involve the companies working together to generate new businesses, it does not necessarily imply that they are expanding their existing operations.

Rightsizing refers to a type of organizational change where a company adjusts its size or structure to better align with its current needs. This could involve downsizing, restructuring, or outsourcing certain functions. The scenario does not suggest that any of the companies are undergoing such a change.

Onboarding refers to a process of integrating new employees into an organization. This is not relevant to the scenario given, as it describes a change at the organizational level rather than the individual level.