The more diversified the environment, the more the firm would benefit from a divisionalized form of departmentalization.

Question

Quizplus · Accepted Answer

A divisionalized form of departmentalization is generally used when a company is operating in multiple markets or has diverse product lines. As a result, a more diversified environment would require more specific departments to effectively manage each product line or market, making a divisionalized structure more beneficial.

The More Diversified the Environment, the More the Firm Would