Alfred Chandler found that firms grow in a predictable pattern and that the firm's growth patterns determine its structural form. Which form corresponds to the FINAL stage in Chandler's theory?
A) Functional
B) Simple
C) Vertically integrated
D) Multidivisional

Question

Quizplus · Accepted Answer

According to Chandler's theory, the final stage of a firm's growth pattern is the multidivisional structure, where the firm has several semi-autonomous divisions with a centralized corporate headquarters overseeing them. This structure allows firms to efficiently manage large, complex operations and diversify their product offerings.

Alfred Chandler Found That Firms Grow in a Predictable Pattern