Whole Foods tried to overcome some of the limitations of a divisional structure by
A) decentralizing key activities.
B) redistributing financial support.
C) centralizing the purchasing function.
D) reducing power conflicts.

Question

Quizplus · Accepted Answer

Whole Foods responded to the drop in stock price in 2017 by centralizing key activities, most notably the its purchasing function. This will allow the firm to have one point of purchase with major suppliers, giving it stronger bargaining power since suppliers will be working with one large buyer rather than eleven smaller buyers. It is also developing centralized, automated information systems to simplify and standardize both staff and shelf replenishment scheduling. The firm is also eliminating over 2,000 jobs as part of this restructuring effort.

Whole Foods Tried to Overcome Some of the Limitations of a Divisional