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.
A) matrix
B) divisional
C) functional
D) simple

Question

Quizplus · Accepted Answer

A divisional structure is suitable for a company like JOC that is expanding internationally and diversifying its product lines, as it allows for separate management of different divisions or product lines, facilitating growth and specialization.

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