Final answer:
When an organization assigns regional or worldwide product responsibility to its product divisions, several advantages can be achieved, including manufacturing standardization, tailoring products to local market needs, significant economies, saving development costs, and integrating operations.
Step-by-step explanation:
When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except:
- Manufacturing standardization can occur: Assigning regional or worldwide product responsibility can lead to manufacturing standardization, which means that products can be produced in a consistent and uniform manner across different locations. This can lead to cost savings and improved efficiency.
- Products can be tailored to local market needs: When product divisions are responsible for specific regions or worldwide, they can adapt products to meet the specific needs and preferences of local markets. This customization can help the organization better serve its customers and increase sales.
- Can result in significant economies: Assigning regional or worldwide product responsibility can result in economies of scale, which means that as the level of production increases, the average cost of producing each unit decreases. This can lead to cost savings for the organization.
- Can result in saving development costs: By assigning product responsibility to divisions, the organization can save development costs that would have been incurred if each division had to develop its own products independently.
- Can help in integrating operations: Assigning regional or worldwide product responsibility can help in integrating operations by aligning product strategies, sharing best practices, and improving coordination between different divisions.