GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It’s unpredictable in nature.
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It balances conflicting organizational objectives.
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It can create better customer experiences.
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It can encourage competition.
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Detailed explanation-1: -The answer is A. Expertise focused on specific customers, products, and regions. The divisional structure makes it easier to identify customer needs, instead of by job responsibilities.
Detailed explanation-2: -Divisional structure has the following advantages: (i) It helps the managers to develop varied skills related to a product and facilitates managerial development. (ii) Fixation of responsibility and accountability is easy, as divisional heads are responsible for the profits and losses of their divisions.
Detailed explanation-3: -Pros or advantages of divisional structure: Each division gets adequate freedom. Division managers become experts in their area. Separation of strategics and operating control. Good training ground for strategic management.
Detailed explanation-4: -focus on specific market segments. meet customer needs more effectively. extend knowledge or expertise within specialised divisions. respond to market changes more flexibly and quickly. encourage positive competition between each department. More items