Several years ago, Russ started his own heating and cooling business. As his business grew, Russ noticed that his traditional structure was becoming difficult to coordinate, making communication difficult and decision making slow. He decided to restructure his business, organizing his departments into six larger groups: (1) heating repairs, (2) heating sales, (3) heating installation, (4) air conditioning repairs, (5) air conditioning sales, and (6) air conditioning installation. What type of structure has Russ adopted?

Question

Jayla Moore

Business

2 November, 17:45

Several years ago, Russ started his own heating and cooling business. As his business grew, Russ noticed that his traditional structure was becoming difficult to coordinate, making communication difficult and decision making slow. He decided to restructure his business, organizing his departments into six larger groups: (1) heating repairs, (2) heating sales, (3) heating installation, (4) air conditioning repairs, (5) air conditioning sales, and (6) air conditioning installation. What type of structure has Russ adopted?

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Georgia Duarte · Answer 1

Multidivisonal structure is a situation whereby one parent company consists of a number of different divisions operating separate business. It is a form of business structure in which divisions within the company largely work autonomously to complete a single task but are still legally under the umbrella of the parent company.

By deciding to divide his business into 6 larger group because of the growth of the business, Russ has engaged in type of business structures.