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Multidivisional basis by product

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Reference no: EM131983135

Consider a firm whose competitive advantage is built almost entirely on its ability to achieve economies of scale in producing small electric motors that are used by the firm to make hair dryers, fans, vacuum cleaners, and food processors. Should this firm be organized on a multidivisional basis by product (hair dryer division, food processor division, etc.) or should it be organized functionally (marketing, manufacturing, finance, etc.)?

Reference no: EM131983135

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