Question: Why does a divisional structure make it hard to negotiate with firms that supply are basic materials like cardboard for packaging? Having multiple divisions increases
Why does a divisional structure make it hard to negotiate with firms that supply are basic materials like cardboard for packaging?
Having multiple divisions increases the number of suppllers you have, so there just isn't envugh attention for each negotiation. In a divisional structure, you have redundancies like multiple finance departenents or mulaiple marketing groups, which increase costs. Each 58BU is treated as a separate customer by your suppliers, so you cannot gain greater economies of seale Your sbus are shipging across several countries, so they afe running into curfency exchange Issues
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