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.

---

Definitions:

Plastic Lego

A type of interlocking plastic brick used for building various structures, known for its creativity-enhancing play.

Large Plastic Blocks

Big, durable blocks made of plastic, often used as toys for building and creative play.

Metacommunication

The process of communicating about the act of communication itself, including cues and contexts that influence how messages are perceived and understood.

Nonverbal Communication

The process of conveying a message without the use of words, which can include facial expressions, body language, gestures, and even tone and pitch of voice.