Question

As the industry a firm competes in is maturing, it may engage in diversification strategy to take advantage of opportunities in other markets. This strategic change will require a firm to change its organization structure to which of the following if it is not already structured this way?

Group of answer choices

Simple structure

Functional structure

Multidivisional structure

Network structure

None of the above

Answer 1

Answer: Multidivisional Structure

Step-by-step explanation:

If a firm engages in a diversification strategy to take advantage of opportunities in other markets, and it is not already structured this way, it would require a change to the Multidivisional structure.

The Multidivisional structure is characterized by dividing the organization into separate divisions or business units, each responsible for a specific product, market, or geographical area. It allows for greater autonomy and specialization within each division, enabling the firm to effectively manage multiple businesses or markets simultaneously.

Diversification often involves entering new markets or industries, which requires different knowledge, skills, and resources. The Multidivisional structure provides the necessary framework for coordinating and managing diverse business units or divisions within the firm, enabling it to operate in multiple markets efficiently.