Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?
A) It allows a high level of integration.
B) It helps contain the core competencies within a strategic business unit (SBU).
C) It leads to competition between SBUs.
D) It helps evaluate each SBU as a stand-alone profit-and-loss center.

Question

Quizplus · Accepted Answer

Managers using the M-form organizational structure to support a related-diversification strategy should ideally concentrate decision making at the top of the organization. Doing so allows a high level of integration. It also helps corporate headquarters leverage and transfer across different SBUs the core competencies that form the basis for a related-diversification.

Why Should Managers Using the M-Form Organizational Structure to Support