Which One of the Following Best Describes a Divisional Structure

question 106

Multiple Choice

Which one of the following best describes a divisional structure?

• A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
• B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
• C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
• D) Employees have two or more superiors, a project manager and a functional manager.
• E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

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Definitions:

Supply Chain

The network of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from supplier to customer.

Capacity

Capacity refers to the maximum level of output that a company can sustain to produce a product or service, considering available resources.

Inventory

The goods and materials that a business holds for the ultimate goal of resale, production, or utilization.

Network Design Decisions

Strategic choices regarding the configuration and management of a supply chain network, including the location of facilities and the flow of goods.