SpandoCorp is a diversified firm that makes industrial, military and consumer products from Spandex. SpandoCorp manages each of the businesses that it operates in as a separate division and treats each as a True profit-and-loss center. In this organization, Grace McKenna is responsible for deciding which set of businesses SpandoCorp will operate in and for encouraging behavior that is consistent with this strategy, Wells Tucker provides information to McKenna about the internal and external environments that she uses in her decision making, and Kelly Rae is one of the individuals who is responsible for evaluating the firm's decision making to ensure that it is consistent with the interests of equity holders.
-Which organizational structure is SpandoCorp using?
A) U-form
B) matrix
C) M-form
D) functional

Question

Quizplus · Accepted Answer

SpandoCorp is using a multidivisional (M-form) organizational structure, where each of the businesses it operates is treated as a separate division and managed as a profit-and-loss center. The roles of Grace McKenna, Wells Tucker, and Kelly Rae also suggest that they are part of the top-level corporate hierarchy responsible for overall strategy, information gathering, and evaluation of decision making.

SpandoCorp Is a Diversified Firm That Makes Industrial, Military and Consumer