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Multiservice Companies

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Is another form of structural configuration better suited to multiproduct, multiservice companies?
According to our textbook, the best suited form of structural configuration for a multiproduct, multiservice company would be the divisional structure. This structure provides the divisions control of decisions that are matching it's targeted markets needs. Companies that use this structural configuration are typically ones that have chosen to expand their products and diversify, whether that be in producing more products or merging with another company.
The form of departmentalization for multiproduct, multiservice companies that would would match somewhat the divisional structure configuration would be the deparmentalization by strategic business unit. This would allow the "company within the company" to evaluate its revenues and in analyzing which of these units fit and will help the company secure a viable future.
Explain how the following somewhat match each other:
· Functional structure with simple structure would compliment each other because both are most commonly used by smaller companies and have one particular product or service; or are in the begining stages of development.
• Divisional structure with departmentalization by product would work if the company had a diversification of products. In the textbook it states, "... growth and expansion of product lines requires a form of structure that facilitates the differences in products and at the same time allows for some specialists to serve all parts of the company."
• Machine bureaucracy with centralized, mechanistic structure are similar in the fact that they are both rule/procedure driven and have a higher number of levels within the company. These work well when there is limited change and standardized procedures.
• Professional bureaucracy with decentralized, organic structure somewhat match each other in the sense that both have a small numbers of organizational levels. According to our textbook, in a professional bureaucracy, "..professionals self-impose standardization and formalization, often in compliance with governing bodies (e.g., licensing agencies, professional associations, or both) and typically due to the complex operating environment."

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