ExpertMedium2 marksMultiple Choice
Syllabus B: Organisational structure, culture, governance and sustainabilitySyllabus BOrganizational Structure
ACCA · Question 10 · Syllabus B: Organisational structure, culture, governance and sustainability
HarvestMoon is a large agricultural business. It recently restructured its operations into four distinct units: North America, South America, Europe, and Asia-Pacific. Each unit has its own HR, Finance, and Marketing departments and operates as a semi-autonomous profit center.
What type of organizational structure has HarvestMoon implemented?
HarvestMoon is a large agricultural business. It recently restructured its operations into four distinct units: North America, South America, Europe, and Asia-Pacific. Each unit has its own HR, Finance, and Marketing departments and operates as a semi-autonomous profit center.
What type of organizational structure has HarvestMoon implemented?
Answer options:
A.
Functional structure
B.
Divisional structure
C.
Matrix structure
D.
Centralized structure
How to approach this question
Look for the creation of self-contained units based on geography, product, or customer, which indicates a divisional setup.
Full Answer
B.Divisional structure✓ Correct
A divisional structure groups the organization by geography, product, or market. Each division operates relatively autonomously and has its own functional departments (like HR and Finance) to support its specific operations.
Common mistakes
Assuming it's a functional structure because HR and Finance are mentioned. However, they are duplicated within each geographic unit, making it divisional.
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