A Major Disadvantage of a Divisional Structure Is That When

question 2

True/False

A major disadvantage of a divisional structure is that when divisions are separated to manage individual product markets, there is a separation of strategic and operational control.

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Definitions:

Product Life Cycle

The stages a product goes through from initial development to decline, including introduction, growth, maturity, and decline.

Pricing Impact

The effect of pricing strategies on consumer demand, sales volume, and ultimately, company profitability.

Pricing Constraints

Limitations that affect how a company can set prices for its products or services, which may include costs, competition, demand, and legal issues.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.