Identify the disadvantage of Divisional structure from the following:
Identify the disadvantage of Divisional structure from the following:
Solution
✅ Correct Option: 2
In a divisional structure each product division maintains its own set of functions, so activities like marketing and finance get duplicated across divisions, increasing costs. This is a disadvantage. The other options, flexibility, performance measurement, and development of divisional heads, are advantages. Hence option 2.
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