The CEO of Transector, Inc., set a 6.5 percent rate-of-return target for all divisions for the past year.Now, at the end of the year, three of Transector's seven divisions have not met this rate-of-return goal.The division managers of these three underperforming divisions have all secretly contacted executive-placement firms to investigate openings at other firms, because they know their future at Transector is in jeopardy as financial performance is all-important at Transector.Transector probably uses the __________ structure.
A) competitive form of the multidivisional
B) SBU form of the multidivisional
C) worldwide geographic area
D) distributed strategic network

Question

Quizplus · Accepted Answer

Transector likely uses the competitive form of the multidivisional structure, where divisions are evaluated based on their financial performance, leading to pressure on managers to meet targets.