Simple organizational structures are most efficacious in businesses that serve:
A) A broad, international product/market
B) A highly fragmented market
C) A cost-competitive product/market
D) A local product/market or narrow niche

Question

Quizplus · Accepted Answer

Simple organizational structures are best suited for businesses that operate in a local product/market or a narrow niche. In such businesses, decision-making can be centralized, and communication channels are short, making it easier to coordinate activities. Additionally, fewer layers of management are needed, which can reduce costs and increase efficiency. Simple structures are less ideal for businesses with broad, international product/markets or highly fragmented markets, which require more complex structures to manage diverse operations and stakeholders.

Simple Organizational Structures Are Most Efficacious in Businesses That Serve