Economics · Business Management
Which of the following statements about Westeros Ltd's organizational structure and stakeholder management is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The new product division is an example of a functional structure, and the production team members are considered internal stakeholders.
- 2Outsourcing the metal alloy's manufacturing makes the company's structure more hollow, and the third-party supplier is a connected stakeholder.
- 3The divisional structure allows for greater goal congruence throughout the organization compared to an entrepreneurial structure.
- 4The divisional structure is likely to cause a degree of dysfunctional decision-making because of the increased local decision-making.✓
Correct answer
The divisional structure is likely to cause a degree of dysfunctional decision-making because of the increased local decision-making.
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