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Syllabus B: Organisational structure, culture, governanceSyllabus BOrganizational StructureDivisional
ACCA · Question 26 · Syllabus B: Organisational structure, culture, governance
[Section A] A multinational food conglomerate reorganizes its operations. It creates three distinct, semi-autonomous units: 'Beverages', 'Snacks', and 'Frozen Foods'. Each unit has its own dedicated HR, Marketing, and Finance teams, and is responsible for its own profit and loss. What type of organizational structure has been adopted?
[Section A] A multinational food conglomerate reorganizes its operations. It creates three distinct, semi-autonomous units: 'Beverages', 'Snacks', and 'Frozen Foods'. Each unit has its own dedicated HR, Marketing, and Finance teams, and is responsible for its own profit and loss. What type of organizational structure has been adopted?
Answer options:
A.
Functional structure
B.
Divisional structure
C.
Matrix structure
D.
Geographic structure
How to approach this question
Identify how the company is grouped: by product lines that operate independently.
Full Answer
B.Divisional structure✓ Correct
A divisional structure organizes a company into semi-autonomous units based on products, services, or geography. Because 'Beverages' and 'Snacks' have their own dedicated support functions and P&L responsibility, this is a classic product-based divisional structure.
Common mistakes
Confusing divisional with functional. If it were functional, there would be one giant Marketing department for all food types.
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