A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

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Since each division is evaluated in terms of financial measures such as return on investment and revenue growth, there is often an urge to focus on short-term performance. If corporate management uses quarterly profits as the key performance indicator, divisional management may emphasize making the numbers and minimize activities, such as advertising, maintenance, and capital investments, which would detract from short-term performance measures.

A Major Disadvantage of Adopting a Divisional Structure Is the Tendency