The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?
A)aligning the corporate structure with the demands of global expansion
B)more accurate monitoring of the performance of each business
C)facilitating comparison between divisions
D)stimulating managers of poorly performing divisions to look for ways of improving performance

Question

Quizplus · Accepted Answer

The multidivisional structure was not initially designed to align with the demands of global expansion. This benefit became more important in later years as globalization became a key factor in business strategy. The three original benefits were: more accurate monitoring of divisional performance, facilitating comparisons between divisions, and stimulating managers of poorly performing divisions to look for ways to improve performance.

The Multidivisional Structure Was Initially Designed to Produce Three Major