Multidivisional structure are structures in which each product division is given

    Multidivisional structure are structures in which each product division is given its own set of support functions so they become self contained decisions.
    Multidivisional Structure Companies
    Multidivisional structure are structures in which each product division is given its own set of support functions so they become self contained decisions. A multidivisional structure has two innovations that overcome the control problems a company experiences with the product division structure when mangers decide to produce a wider and wider range of different products and in different industries. There are several advantages and disadvantages of Multidivisional Structures.
    Examples of Multidivisional Companies: GE IBM Johnson & Johnson
    Advantages of Multidivisional Structure
    Increased Organizational Effectiveness
    Increased Control
    Profitable Growth
    Internal Labor Market
    IV Disadvantages of a Multidivisional Structure
    Managing the Corporate-Divisional Relationship
    Coordination Problems Between Divisions
    Transfer Pricing
    Bureaucratic Costs
    Communication Problems
    Attachments:

                                                                                                                                      Order Now