AnalyzingOrganizationalStructureforMultiproductandMultiserviceCompanies1)ConsiderAnalyticalExercise7attheendofChapter3:“Amongtheweaknessesofthedivisionalstructureistheduplicationofactivitiesandpotentialofcounter-productiveinter-marketcompetitionforcustomers,whichisnotonlyinefficientbutcanlimitopportunitiesforcooperationacrossmarketsegmentsandwasteresources.”Thisstatementappliestoconglomerateorganizations.Canyouthinkofaformofstructurethatisbettersuitedtomultiproduct,multiservicecompanies?Defendyouranswer.Respondsubstantivelytotwootherlearners.Thebestformofstructureforamultiproduct,multiservicecompanywouldbedivisionalstructure.Divisionalstructureisalotlikemachinebureaucracy,”Thedivisionalstructureisactuallyasetofautonomousunits,eachtypicallyamachinebureaucracyuntoitself,coordinatedbyacentralheadquarters(Robbins,1990).However“Machinebureaucracieshavedifficultyadaptingtochangesintheenvironment,suchassignificantproductchangesbroughtaboutbymarketdemand.”Reilly,M.,Minnick,C.,&Baack,D.(2011).Withadivisionalstructureyouareabletohaveahandfulofstrongmachinebureaucracy’sleadbyonecentral“boss”.Thiswaythemachinebureaucraciesaren’tneededtoadapttochangesintheenvironment,anothermachinebureaucracywilljustfocusonthenewproductorservicedemandedbytheAnalyzing Organizational Structure for Multiproduct and Multiservice Companies
The assignment analyzes organizational structures for companies offering multiple products and services, focusing on management strategies.
Amelia Ward
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Business Management