Question

Harvey’s, a large and successful retail chain on the West Coast, decides to expand its operations across the U.S. Which of the following organizational structures should Harvey’s use?

a. basic
b. simple
c. multidivisional
d. functional

Answer 1

Letter c is correct. Multidivisional.

Step-by-step explanation:

The multidivisional organizational structure is best suited for implementation at Harvey's. This structure is generally used by companies that are expanding due to higher levels of diversification.

Its main feature is the division of various strategic business units that have the authority to manage losses and profits. The major benefits realized by the multidivisional structure are increased supervision and control, the process of comparing and distributing resources across units, and the motivation to improve internal management.