Evaluating Multidivisional Organizational Structures PPT

This PPT slide, part of the 50-slide Business Fundamentals PowerPoint presentation, outlines the concept of multidivisional organizational structures, emphasizing their division into units based on various criteria such as products, services, geographical areas, or processes. At the top, the Head Office oversees these units, which include Unit A, Unit B, Unit C, and Unit D, each supported by shared services like finance.

The advantages of this structure are clearly articulated. It allows for a concentrated focus on specific business areas, facilitating performance measurement for each unit. This structure also simplifies the addition or divestment of units, making it easier for senior management to concentrate on strategic initiatives.

On the downside, the slide highlights several challenges. Deciding how to divide the organization can be complex, potentially leading to conflicts between units. The cost implications are also significant, as maintaining multiple divisions can strain resources. Additionally, if divisions expand too much, it may hinder effective cooperation and coordination among them.

The concluding note suggests that while a divisional structure can be broad, it is essential to manage the balance between autonomy and collaboration among the various units. This slide serves as a foundational overview for executives considering the implications of adopting a multidivisional structure in their organizations. It provides a balanced perspective on both the benefits and drawbacks, enabling informed decision-making regarding organizational design.

This slide is part of the Business Fundamentals PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It covers business fundamentals, such as org structures, operational issues, and financial statements.

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