Allied Tech Is a Multidomestic Company That Is Undergoing Organizational

question 13

Multiple Choice

Allied Tech is a multidomestic company that is undergoing organizational restructuring. Matt, the chief executive officer, meets with the heads of all the departments to decide the type of structure that would be most suitable for the firm. The heads agree that the firm would benefit from a divisional structure. However, Matt is not convinced with the idea. Which of the following statements justifies Matt's viewpoint in this scenario?

• A) Organizations with a divisional structure often struggle to respond to market needs and opportunities, especially if these affect more than one functional unit simultaneously.
• B) If the company adopts a divisional structure, it will not be able to organize units by the geographic location in which it serves.
• C) A divisional structure will lead to inefficient knowledge flows between units and high coordination costs.
• D) If the company adopts a divisional structure, it will not be able to develop specific and unique offerings for each target group.

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Definitions:

Claim

Refers to the statement that the maker of the argument is seeking to show to be true or probably true.

Unwarranted Expertise

Claims of knowledge or skill in a particular area without sufficient evidence or justification.

Conflict Of Interests

A situation in which a person's or entity's vested interests could potentially influence their duties or decisions in a biased manner.

Communication Skills

The abilities used in expressing ideas clearly and effectively through speaking, writing, and non-verbal means.