Question

A private university is made up of various "schools," such as the School of Journalism, he School of Business, the school of law, the School of Arts and Sciences, and so forth. The university is experiencing some financial problems and the top administration has decided to implement a policy of "each tub on its own bottom," a colorful phrase that each school of the university is to become a profit center. This scheme is somewhat parallel to the organizational _____ structure.

Answer 1

Available Options are:

a. Network

b. Strategic Business Unit Multidivisional

c. Functional

d. Matrix

Answer:

Option B. Strategic Business Unit Multidivisional

Explanation:

Business units are the operations of the organization, whose inflows are mostly independent of the other operations of the company. The operations in this case grouped in strategic business group which are in the same industry and are in related diversification. Such breaking down of operations to appraise the performance of the business unit are the main benefits of strategic business unit multidivisional structure.