The functional organizational model can exacerbate problems in ________ firms.
A) multiproduct, multimarket
B) single product, single market
C) multiproduct, single market
D) single product, multimarket

Question

Quizplus · Accepted Answer

The functional organizational model, which is characterized by departments such as marketing, finance, and operations, can exacerbate problems in multiproduct, multimarket firms because it can lead to a lack of coordination and communication between departments that are responsible for different products or markets. This can result in inefficiencies, duplication of effort, and missed opportunities for synergy and cross-selling. In contrast, single product, single market firms are likely to have a simpler organizational structure and less need for coordination between departments, while multiproduct, single market or single product, multimarket firms may be better served by a divisional or matrix organizational model that allows for more specialized focus on specific products or markets.

The Functional Organizational Model Can Exacerbate Problems in ________ Firms