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
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.
