The Amos Ball Printing Company was established in 1866. Currently, Amos Ball V is the CEO and chairman of the board. The company has traditionally used a functional structure. Five years ago, the company branched into online publishing and small-batch printing in addition to its regular large-batch operations. Both new businesses are significantly different in technology and marketing from each other and from Ball's traditional business. Despite the hiring of experienced professionals in these new endeavors, performance continues to be poor and is affecting Ball's overall performance. Which of the following statements is TRUE?
A) Amos should consider adopting the multidivisional structure.
B) Mr. Ball has insufficient power to change the structure of the organization.
C) Restructuring must only be done from a position of strength, so it is necessary to wait until the company's overall performance improves before making radical changes.
D) These businesses are too disparate to coordinate within one corporate structure.

Question

Quizplus · Accepted Answer

The multidivisional structure is designed to accommodate diverse business units under one corporate umbrella. Given that the new businesses are significantly different from Ball's traditional business, a multidivisional structure could be a more appropriate strategy. This would enable the new businesses to have flexible structures, tailored to their needs, while the traditional business retains its functional structure. Mr. Ball has the power to change the structure of the organization, as he is the CEO and chairman of the board. Restructuring does not necessarily need to wait for a position of strength, and it is better to make changes sooner rather than later. Finally, while the businesses are different, they may still be able to operate under one corporate structure with the proper coordination and management.

The Amos Ball Printing Company Was Established in 1866