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Question
a silo mentality is a reluctance to share information with employees of different divisions in the same company. the divisional structure may foster this negative attitude which reduces the organization’s efficiency and, at worst, contributes to a damaged corporate culture. what other disadvantages are there to a divisional structure? costs more to operate gains local competitive advantage experiences from economies of scales more accountability and transparency.
- Analyze "Costs more to operate": Divisional structures have separate divisions with their own resources (like marketing, HR for each division), leading to duplication of efforts and higher operational costs. This is a disadvantage.
- "Gains local competitive advantage": This is an advantage, as divisions can tailor to local markets, so it's not a disadvantage.
- "Experiences from economies of scales": Divisional structures lose economies of scale (since divisions are more independent, they can't leverage large - scale production/operations as much), so this is a disadvantage (note: the option wording might have a typo, should be "Experiences losses from economies of scale").
- "More accountability and transparency": These are advantages, as divisions are more accountable for their own performance, so this is not a disadvantage.
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A. Costs more to operate
C. Experiences losses from economies of scale (assuming the option has a typo and should be "Experiences losses from economies of scale")