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Question : Case Study 21: Citywide Services

Citywide Services' shift to a divisional structure could lead to:

 

Option 1: Clear hierarchy

Option 2: Enhanced innovation

Option 3: Streamlined communication

Option 4: Excessive centralization


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: Enhanced innovation


Solution : The correct answer is (b) Enhanced innovation.

A divisional structure is an organizational structure in which the company is divided into divisions, each of which is responsible for a specific product, service, or market. This type of structure can lead to enhanced innovation because it allows divisions to focus on their own specific areas of expertise and to make decisions quickly and adaptively.

Overall, a divisional structure can be a good way to promote innovation within a company. However, it is important to note that a divisional structure is not a guarantee of success. Companies also need to have a culture that supports innovation and to invest in research and development.

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