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Strengths and Weaknesses of Divisional Organization Structure b STRENGTHS: Suited to fast change in unstable environment Leads to client satisfaction because product responsibility and contact points are clear Involves high coordination across functions Allows units to adapt to differences in products, regions, clients Best in large organizations with several products Decentralizes decision-making b WEAKNESSES: Eliminates economies of scale in functional departments Leads to poor coordination across product lines Eliminates in-depth competence and technical specialization
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Unformatted text preview: Makes integration and standardization across product lines difficult Source: Adapted from Robert Duncan, What Is the Right Organization Structure? Decision Tree Analysis Provides the Answer, Organizational Dynamics (Winter 1979): 431. Reorganization from Functional Structure to Divisional Structure at Info-Tech R&D Manufacturing Accounting Marketing Info-Tech President Functional Structure R&D Mfg Acctg Mktg Electronic Publishing R&D Mfg Acctg Mktg Office Automation R&D Mfg Acctg Mktg Virtual Reality Info-Tech President Divisional Structure...
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This note was uploaded on 09/30/2011 for the course MANAGMENT MAN4201 taught by Professor Baker during the Fall '11 term at UNF.

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