The expression that a company is highly differentiated means they are a multi-di

Question

The expression that a company is highly differentiated means they are a multi-divi- sional, multi-product company;

A. These divisions are managed at the CEO and CFO level

B. Run by general managers who are responsible for managing all of the functional de departments within the division and retain responsibility for divisional performance

C. R&D and distribution are usually not included in the functional process overseen by the general manager. Those functions fall under corporate oversight.

Explanation / Answer

Answer: Option (B) - Run by general managers who are responsible for managing all of the functional departments within the division and retain responsibility for divisional performance.

Explanation: In a multi-divisional, multi-product company, the role of the CEO, CFO and other top management executives is to make strategic decisions for the organization. The day-to-day operations, i.e. the functional process of the departments within the division are overseen by the general managers. The general managers are completely responsible for their division’s performance. Also, although the R&D process (Research and Development) falls under corporate oversight, the distribution process is an operational functionality and falls under the purview of the general managers.

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