Question

The finance department of Harkness Communications decides that half of the previous year's profits should be reinvested into the business. The marketing department, however, plans to extend the company's services to five more cities, which would require additional investment. The department heads hold a meeting at the end of the quarter to discuss the company's strategies; the meeting is, however, adjourned when they realize that their opinions clash. Information silo, in this case, has led to ________.

a- organizational inefficiency
b- increased expense
c- data duplication
d- loss of business

Answer 1

Information silo at Harkness Communications has caused organizational inefficiency, which is a lack of coherent business strategy due to poor communication and decision-making processes among different departments within the company.

Step-by-step explanation:

The situation described at Harkness Communications due to information silo has led to organizational inefficiency. When departments within a company operate in isolation and don't share information effectively, it can result in a lack of coherence in business strategy. This scenario where the finance and marketing departments have differing investment priorities without a common approach indicates a typical inefficiency that arises from siloed functioning within an organization.

Information silos can lead to a breakdown in communication, resulting in delayed decision-making processes and potentially missed opportunities. In the broader context of business growth and investment, when a company's strategy appears profitable, outside investors such as bondholders and shareholders may offer financial capital based on available information about the company's financial health. However, internal inefficiency can hamper a company's ability to present a unified, appealing strategy to these potential investors.