Several years ago, Russ started his own heating and cooling business. As his business grew, Russ noticed that his traditional structure was becoming difficult to coordinate, making communication difficult and decision making slow. He decided to restructure his business, organizing his departments into six larger groups: (1) heating repairs, (2) heating sales, (3) heating installation, (4) air conditioning repairs, (5) air conditioning sales, and (6) air conditioning installation. What type of structure has Russ adopted?

Explanation:

Multidivisonal structure is a situation whereby one parent company consists of a number of different divisions operating separate business. It is a form of business structure in which divisions within the company largely work autonomously to complete a single task but are still legally under the umbrella of the parent company.

By deciding to divide his business into 6 larger group because of the growth of the business, Russ has engaged in type of business structures.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; operating revenues;