A multidivisional organizational (M-form) structure is more likely when (note multiple correct answers are possible): Group of answer choices Technology is relatively stable in the industry The firm sells into just one market. The firm is large and produces a diverse range of products The firm produces a small range of products. There is a single division.
Question
A multidivisional organizational (M-form) structure is more likely when (note multiple correct answers are possible):
Group of answer choices
Technology is relatively stable in the industry
The firm sells into just one market.
The firm is large and produces a diverse range of products
The firm produces a small range of products.
There is a single division.
Solution
The correct answers are:
- Technology is relatively stable in the industry
- The firm is large and produces a diverse range of products
Here's why:
A multidivisional organizational (M-form) structure is typically used by large firms that produce a diverse range of products. This structure allows each division to operate semi-independently, focusing on its own product line, which can improve efficiency and accountability.
When technology is relatively stable in the industry, it can be beneficial to use an M-form structure. This is because the structure allows for a clear division of responsibilities and can facilitate efficient decision-making in a stable environment.
The other options are not typically associated with an M-form structure:
- If the firm sells into just one market, it may not need the complexity of an M-form structure. A simpler structure may be more appropriate.
- If the firm produces a small range of products, it may not need to separate its operations into multiple divisions. Again, a simpler structure may be more appropriate.
- If there is a single division, an M-form structure is not necessary. The M-form structure is characterized by multiple divisions, each responsible for a different product line.
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