The primary source of environmental diversity or uncertainty mainly determines the best form of divisional structure an organization should adopt.

Question

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The primary source of environmental diversity or uncertainty, such as different customer segments, geographic markets, or regulatory requirements, can have a significant impact on the most effective form of divisional structure for an organization. For example, a geographic divisional structure may be suitable for a company operating in different regions with unique market conditions, while a product-based divisional structure may be better for a company with diverse product lines serving different customer segments. Therefore, understanding the environmental factors that affect the organization is essential for determining the appropriate divisional structure.

The Primary Source of Environmental Diversity or Uncertainty Mainly Determines