Question

For years, the Atlantic Tool Company maintained all operations—purchasing, marketing, etc.—in its Charlotte, North Carolina, headquarters. However, as a result of sustained growth in the company's market, Atlantic has established facilities in three other cities. Each of these has its own purchasing and marketing departments, and each oversees its respective region of the country. In other words, Atlantic has changed from a ________ structure. a. Centralized b. Functional c. Decentralized d. Matrix

Answer 1

Atlantic Tool Company has changed from a:

a. Centralized structure

In a centralized structure, all operations and decision-making authority are concentrated at the company's headquarters, which was the case when Atlantic Tool Company had all operations in its Charlotte headquarters. The expansion to facilities in other cities with their own departments represents a move toward a more decentralized structure.