Black Gold (Scenario)
Jamal Oil Corporation (JOC) began as a relatively small oil company. However, through the years it has grown to become an international corporation.
-Jamal decided to purchase an oil drilling supply company, located in a new country. The purchase of this company was classified as a related diversification, but distance and the new product line suggested that this newly purchased organization continued to be operated as a separate company. In beginning a new phase in the history of Jamal Oil Corporation, a __________structure should be implemented to allow the company to continue to grow.

Question

Quizplus · Accepted Answer

A divisional structure would allow the newly purchased company to operate as a separate unit within JOC while still being linked to the overall company's goals and direction. This structure is ideal for handling multiple product lines and businesses, especially those that are geographically dispersed. With JOC's international presence and new product line, a divisional structure would be the best option to ensure continued growth.

Black Gold (Scenario) Jamal Oil Corporation (JOC) Began as a Relatively Small Oil