Why might a divisional structure suit ABC?

Why might a divisional structure suit ABC?

• A. It centralizes decisions across the entire company.
• B. It reduces product focus.
• C. It would allow ABC to focus on a different product, market, and strategy from core concrete business.
• D. It eliminates the need for separate leadership

Answer: (C)

A divisional structure groups people by product lines or by markets, creating semi-autonomous units with their own leadership and resources. This setup is a good fit for ABC when it has multiple products or serves different markets that each need their own tailored approach. With divisions focused on a specific product or market, ABC can tailor product development, marketing, pricing, and distribution to suit that group's customers and competitive environment without being constrained by the needs of the core business. In other words, it would allow ABC to focus on a different product, market, and strategy from core concrete business while staying under the same corporate umbrella. This structure also makes performance clearer, since each division is responsible for its own results, and it can make it easier to add new product lines or enter new markets by creating new divisions.

A divisional structure groups people by product lines or by markets, creating semi-autonomous units with their own leadership and resources. This setup is a good fit for ABC when it has multiple products or serves different markets that each need their own tailored approach. With divisions focused on a specific product or market, ABC can tailor product development, marketing, pricing, and distribution to suit that group's customers and competitive environment without being constrained by the needs of the core business. In other words, it would allow ABC to focus on a different product, market, and strategy from core concrete business while staying under the same corporate umbrella. This structure also makes performance clearer, since each division is responsible for its own results, and it can make it easier to add new product lines or enter new markets by creating new divisions.