The heavy use of integrative mechanisms in the ______ multidivisional organizational structure is intended to achieve _______.
A) cooperative; economies of scope
B) competitive; cost efficiencies
C) functional; sensitivity to cultural diversity
D) SBU; quick response to local customer needs

Question

Quizplus · Accepted Answer

The use of integrative mechanisms such as communication, coordination, and cooperation in the multidivisional organizational structure is intended to achieve economies of scope, which refers to the ability to share resources and capabilities across business units to reduce costs and increase efficiency. Choice B is incorrect because cost efficiencies are typically achieved through a focus on standardization and centralization, which are not emphasized in the multidivisional structure. Choice C is also incorrect because sensitivity to cultural diversity is not a primary goal of the multidivisional structure, which is more focused on decentralization and autonomy of business units. Choice D is partly correct in that the multidivisional structure does allow for some degree of quick response to local customer needs, but this is more of a secondary benefit rather than the primary goal.

The Heavy Use of Integrative Mechanisms in the ______ Multidivisional