Avalanche operates as a strategic business unit (SBU) under Snowfall Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that
A) Avalanche does not have its own profit and loss responsibility.
B) Avalanche is dependent on the other SBUs in Snowfall Inc.
C) Avalanche has a matrix organizational structure.
D) Avalanche is led by its own CEO (or equivalent general manager).

Question

Quizplus · Accepted Answer

From this information, it may be reasonable to infer that Avalanche is led by its own CEO (or equivalent general manager). The multidivisional structure (or M-form) consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility. Each SBU is operated by Snowfall independently from one another, and each is led by a CEO (or equivalent general manager) who is responsible for the unit's business strategy and its day-to-day operations.

Avalanche Operates as a Strategic Business Unit (SBU) Under Snowfall