True or false: Firms that are supporting an unrelated-diversification strategy through the use of the M-form structure should decentralize decision making.
Question
True or false: Firms that are supporting an unrelated-diversification strategy through the use of the M-form structure should decentralize decision making.
Solution
True. Firms that support an unrelated-diversification strategy through the use of the M-form (Multidivisional) structure should decentralize decision making. This is because each division within an M-form structured organization operates almost independently of the others. Each division is responsible for its own strategy, resource allocation, and performance. Therefore, decision-making authority is pushed down to the divisional level, which is a form of decentralization.
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