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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.

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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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