One problem with the divisional structure is that it increases the risk of duplication and underutilization of resources.

Question

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With the divisional structure, each division may have its own departments such as HR, IT, and finance, which can lead to duplication of efforts and resources. Additionally, each division may have its own budget and decision-making authority, which can lead to underutilization of resources if there is not enough communication and coordination between divisions.

One Problem with the Divisional Structure Is That It Increases