An Important Feature of the Global Area Division Structure Approach

question 33

Multiple Choice

An important feature of the global area division structure approach is that:

• A) it is generally used by companies that are growing businesses and have broad product lines.
• B) it prevents division managers from catering to the tastes of the local market and making rapid decisions to accommodate environmental changes.
• C) it often signals a major change in company strategy because now international operations are put on the same level as domestic operations.
• D) it focuses on a product set and discovers where it can survive and subsequently distributes it to that region.

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Definitions:

Organizational Design

The process of shaping an organization's structure and roles to align with its objectives and strategies.

Closely Related

Describes entities or concepts that have a strong connection or association with each other.

Divisional Design

refers to an organizational structure where operations are segregated based on product lines, markets, or geographic regions, allowing for more focused management and resources allocation.

Diversification Strategy

A business approach where a company expands its operations by entering into new markets or product lines, aiming to reduce overall risk.