Increasingly diversified firms that have decided to shift to a related-constrained strategy should change their organizational structure to the ____ structure.
A) combination
B) functional
C) network
D) multidivisional

Question

Quizplus · Accepted Answer

A multidivisional structure is the best choice for increasingly diversified firms that have decided to shift to a related-constrained strategy. This structure involves dividing the company into separate business units, each with its own set of functional departments. This allows for greater autonomy and flexibility in decision-making, as well as more efficient resource allocation and coordination within each unit. Moreover, the multidivisional structure enables the firm to leverage its core competencies and shared resources across multiple lines of business, while still maintaining a degree of strategic focus and control over each unit's operations.

Increasingly Diversified Firms That Have Decided to Shift to a Related-Constrained