Western Governors University (WGU) BUS2060 D078 Business Environment Applications I: Business Structures and Legal Environment Practice Exam

The divisional structure is designed to facilitate expansion by geographic locations while maintaining centralized control over key aspects of the organization. In this structure, divisions are typically organized based on geographical regions, product lines, or markets. Each division operates semi-autonomously, allowing for tailored strategies that can better address local market needs and conditions, all while adhering to the broader vision and policies set by the central management.

This approach enables the organization to be responsive to regional differences and local customer demands. Furthermore, centralized control ensures that strategic objectives and company standards are consistently applied across all divisions, promoting cohesive direction and reducing the risk of diverging from the organization's overall goals.

In contrast, other structures may lack this balanced approach. A functional structure organizes teams by function rather than location, which can hinder adaptability to local markets. The matrix structure, while flexible, creates complexity due to dual reporting lines, which can dilute centralized control. The network structure focuses on collaboration with external entities, which may not maintain centralized control effectively. Thus, the divisional structure stands out as the most effective model for achieving geographic expansion with centralized oversight.