Which of the following statements is true of a worldwide product divisional structure?
A)It involves the decentralization of the overall strategic development and fmancial control of the finn.
B)It is favored by fmns that are not diversified.
C)It usually more creates scope for coordination problems than the international division structure.
D)It facilitates the transfer of competencies within a division's worldwide operations.
E)It brings area or country managers to the same level as of corporate managers.

Question

Quizplus · Accepted Answer

A worldwide product divisional structure facilitates the transfer of competencies within a division's worldwide operations. It is characterized by the decentralization of the overall strategic development and financial control of the firm to separate divisions, each responsible for a particular product line or service. While it may create some coordination problems, it is generally preferred by diversified firms that operate in multiple markets and need to tailor their products to local market conditions. This structure does not necessarily bring area or country managers to the same level as corporate managers.

Which of the Following Statements Is True of a Worldwide