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A colleague from the advisory department calls you as their team is in the process of helping with the restructuring of one of a large
A colleague from the advisory department calls you as their team is in the process of helping with the restructuring of one of a large company's branches. They ask if you could help them figure out how to set up subdivisions of this branch, as they would like to elevate more market potential for the company. Their team seems to be undecided on whether or not to redesign the branch so that each subdivision fulfills one specific function of the value chain. You tell them that... Question 22 Answer a. ... a possible advantage of such functional units is the specialization of the subdivisions to realize economies of scale. b. ... that managers of those divisions would gain more entrepreneurial spirit as they are responsible for all functions related to a product or service. c. ... redesigning them in such a way would bring subdivisions closer to the market in which they operate. d. ... that the subdivisions would then be more flexible as they have multiple responsibilities. e. ... that the performance of these subdivisions would be easier to measure
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