The primary limitation with the product division structure is the ________.
A)cost of duplicated functions and international activities
B)poor response to local market demands for a product
C)inability to transfer core competencies within units
D)difficulty of selling product lines

Question

Quizplus · Accepted Answer

The primary limitation of the product division structure is the high cost of duplicated functions and international activities. Each product division has its own set of support functions, such as finance, human resources, and marketing, which increase costs. Additionally, when a company operates in multiple countries, each product division has to duplicate many of these support functions in each country, which increases costs even further.

The Primary Limitation with the Product Division Structure Is the ________