Which organizational structure will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?
A)functional
B)cooperative M-Form
C)SBU form
D)competitive M-Form

Question

Quizplus · Accepted Answer

The SBU (Strategic Business Unit) form is designed to allow the headquarters to maintain financial control over operating units while granting the units strategic independence. This structure provides the framework for each unit to develop its own strategy, products, and markets, and to control its own operations, while still being accountable to the central headquarters for financial performance. Therefore, this structure seems to be the best choice for the given scenario.

Which Organizational Structure Will Emphasize Financial Controls for Headquarters' Evaluation