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The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to coordination and control problems. Typically, a successful firm pursuing a differentiation strategy will: use cross-functional development teams.
What is meant by multidivisional structure?
In a multi-divisional organization, a single-parent corporation is made up of numerous individual divisions that run independent operations. Although the parent business technically owns each division, it also grants each division a lot of autonomy so that it can operate independently.
A multidivisional organizational structure places each business unit in a separate division with access to all necessary support services. As a result, each component of the business effectively functions independently of the others. To manage and supervise the divisions, corporate headquarters was established.
The multidivisional structure was seen by renowned business historian Alfred Chandler as a novel solution to coordination and control issues. Utilizing cross-functional development teams is typically a tactic used by successful businesses seeking to differentiate themselves.
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