Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In a Simple Structure organization, which component is considered dominant?

1. Middle Line

2. Operating Core

3. Strategic Apex

4. Techno Structure

The correct answer is: Strategic Apex

In a Simple Structure organization, the Strategic Apex is considered the dominant component because it is responsible for the overall direction and success of the organization. This structure is characterized by a small, central management team that makes decisions and oversees all operations without the complexity of layers typically found in larger organizations. The Strategic Apex typically consists of top executives or the owner who has the final authority over strategic decisions, resource allocation, and policy formulation. It plays a crucial role in coordinating activities and ensuring the organization aligns with its goals. This contrasts with other components, such as the Operating Core, which focuses on the day-to-day activities and operations, and the Techno Structure, which centers on the engineering and administrative aspects that support operations. In a Simple Structure, the primary influence and power reside with the Strategic Apex, emphasizing its centrality and dominance in positioning the organization strategically in its environment.