General Motors decided to establish a new division (Saturn) because it had experienced enormous problems in adapting its existing divisions to the dynamic and highly competitive automobile market. Which of the following had the greatest impact on GM's decision to create a new division rather than simply adapt its existing divisions?

Question

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Organizational culture can significantly impact a company's ability to adapt to market changes. In GM's case, the existing divisions likely had entrenched cultures that made it difficult to implement the necessary changes quickly and effectively. Establishing a new division like Saturn allowed GM to create a distinct organizational culture from the ground up, tailored to the competitive demands of the automobile market.

General Motors Decided to Establish a New Division (Saturn) Because