Which of the following is not an advantage of a strategic business unit (SBU)type of organizational structure?
A) Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.
B) Divisional executives can respond quickly to market changes and opportunities.
C) Planning and control by the corporate office is more manageable.
D) The corporate office is more removed from the individual divisions.

Question

Quizplus · Accepted Answer

With an SBU structure, divisions with similar products, markets, and/or technologies are grouped into homogeneous units to achieve synergies. It makes planning and control by the corporate office more manageable. With greater decentralization of authority, individual businesses can react more quickly to important changes in the environment than if all divisions had to report directly to the corporate office.

Which of the Following Is Not an Advantage of a Strategic