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The primary disadvantage of multidivisional structure (e.g., product departmentalization) is:

a.an over-emphasis on customer needs.b. duplication of scare resources.c.difficulties in coordinating across departments.d.overspecialization of managers and workers.e.an inability to solve problemsfor specific customers.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/06/09
Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( b )

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

I agree with (B).

However this aspect has to be carefully weighted in multinational organizations, or in any organization which operates in both domestic highly protected markets and in overseas highly competitive markets.

In such case the Multidivisional Structure might become a necessity to avoid cross cultural contamination of the two divisions at the expenses of the one that operates on highly competitive markets.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

b. duplication of scare resources.

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