ExpertMedium2 marksMultiple Choice
ACCA · Question 09 · Business & Technology
Section A
"GlobalFoods" is a multinational corporation that recently restructured. It abandoned its centralized functional departments and instead created separate, self-contained divisions for 'North America', 'Europe', and 'Asia-Pacific'.
What is the primary advantage of this new organizational structure for GlobalFoods?
Section A
"GlobalFoods" is a multinational corporation that recently restructured. It abandoned its centralized functional departments and instead created separate, self-contained divisions for 'North America', 'Europe', and 'Asia-Pacific'.
What is the primary advantage of this new organizational structure for GlobalFoods?
Answer options:
A.
Elimination of duplicated central services
B.
Greater responsiveness to local market conditions
C.
Improved standardization of products globally
D.
Shorter scalar chain across the entire organization
How to approach this question
Consider why a company would split by geography. It is usually to cater to the specific needs of those different geographic areas.
Full Answer
B.Greater responsiveness to local market conditions✓ Correct
A geographic divisional structure allows an organization to focus on the specific needs, cultures, and economic conditions of different regions, leading to better local responsiveness.
Common mistakes
Selecting 'Elimination of duplicated central services', which is actually a disadvantage of divisional structures.
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