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21 November, 03:08

McDonald's experienced a situation where the French division of the company ran a surprising advertisement in a magazine that included a quote from a nutritionist that asserted children should not eat at a McDonald's more than once per week. McDonald's executives in Chicago were concerned about the message sent to their customers, and they made it clear that they strongly disagreed with the nutritionist. What kind of organization structure empowers divisions to act quickly, but can lead to actions that do not fit with the company's overall strategy

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  1. 21 November, 05:31
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    Multidivisional structure.

    Explanation:

    Multidivisional structure is usually employed by companies that offer wide variety of products and services. to wide range of customers.

    Each division will need to respond fast to customer needs. If a central structure is used, the decision making process will slow down response time.

    The main disadvantage of this structure is that can lead to actions that do not fit with the company's overall strategy.

    This was the case in McDonald's where a a nutritionist asserted children should not eat at a McDonald's more than once per week. This was in disagreement with what management wanted.
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