Which of the following is true of divisional structures?
A)They make it difficult for an organization to move faster if a new customer need arises.
B)They seldom help organizations to make a move when a competitor introduces an important product.
C)Managers find it difficult to make decisions that affect several functions in order to serve customer needs.
D)They sometimes focus on their own customer groups or products to the exclusion of the company's overall mission.
E)Duplicating functions in each division rarely adds to costs, so this structure is completely inexpensive for organizations.

Question

Quizplus · Accepted Answer

Duplicating functions in each division can add to costs, so this structure may be too expensive for some organizations. Also, divisions sometimes focus on their own customer groups or products to the exclusion of the company's overall mission.

Which of the Following Is True of Divisional Structures