Alfred Chandler found that firms grow in a predictable pattern and that the firm's growth patterns determine its structural form. Which form corresponds to the FINAL stage in Chandler's theory?
A)functional
B)simple
C)vertically integrated
D)multidivisional

Question

Quizplus · Accepted Answer

Chandler's theory suggests that the final stage of a firm's growth pattern is the multidivisional form, in which a large corporation is divided into separate divisions based on product lines, geographic areas, or other factors. This allows for greater flexibility and efficiency in managing a diverse portfolio of products or services.

Alfred Chandler Found That Firms Grow in a Predictable Pattern