Under what conditions would you reasonably consider a divisional structure by country with each country director responsible for their own Profit and Loss (P&L)?

(A) Never; a divisional structure by country simply is not suitable for this type of business

(B) If the sales and marketing approach that is required in each country is highly country specific

(C) If each country requires a significant amount of adaptation to specific local needs, not just in your sales and marketing approach, but also in software development

(D) If efficiency is not of primary importance to your business strategy

Explanation

A divisional structure by country with each country director responsible for their own Profit and Loss is best suited for organisations whose majority of departments have to adapt significantly to the local needs of each country. The Sales team, the marketing team, the IT Software Development team, all of them need to adapt to the specific needs of the people in that country.

Conclusion

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.

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