The most common organizational structure for implementing a corporate diversification strategy is the ________ structure.
A) matrix
B) U-form
C) M-form
D) functional

Question

Quizplus · Accepted Answer

The M-form (multidivisional) structure is commonly used for implementing a corporate diversification strategy because it allows for each division to operate independently and focus on their specific market, while still being part of the larger corporate entity. This structure also allows for centralized control and coordination of the various divisions. The functional structure is more appropriate for organizations with a single product or service line, while the U-form (unitary) structure lacks the necessary flexibility for diversification. The matrix structure can be complex and difficult to manage, making it less ideal for implementing a corporate diversification strategy.

The Most Common Organizational Structure for Implementing a Corporate Diversification