(A) Upon further research you find that customer needs are actually highly localised, because customers really appreciate the feeling that they are dealing with a local business that is run by a person they know, instead of some large, branded corporate
(B) Localised profit and loss (P&L) responsibility is important
(C) You could try to increase coordination in training methods and procurement by introducing some dotted line support functions in these two areas that can advise and support the gym directors
(D) Changing the structure will necessarily cause increased complexity
A good valid reason to stick to the existing structure is when the customers want a localised experience where they prefer to purchase goods or services from a local business that they know. In such a case, customers tend to shop from local businesses instead of big branded corporates.
This question is a part of the Weekly Quiz 3 section from the Organisational design: Know your organisation course. You can check out all the quiz answers to this exam in our Organisational design: Know your organisation Quiz Answers page.