Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In a divisionalized company structure, which component holds the dominant role?

1. Strategic Apex

2. Support Staff

3. Middle Line

4. Operating Core

The correct answer is: Middle Line

In a divisionalized company structure, the component that holds a dominant role is the Middle Line. This layer acts as a bridge between the strategic apex, which focuses on overall strategy and long-term goals, and the operating core, which is involved in the day-to-day operations of the organization. The Middle Line is critical in a divisionalized setup because it includes managers who oversee specific divisions or departments. These managers are responsible for aligning their division’s objectives with the overall strategic goals set by the upper management. They not only guide the operational activities of their divisions but also ensure that the divisions operate cohesively within the broader framework of the company. This component is essential for effective communication and coordination among various divisions, allowing for flexibility and responsiveness to market changes. By managing resources, implementing strategies, and leading their teams, the Middle Line helps optimize performance and adapt to growth in a divisionalized structure. Conversely, the other components, while important, do not carry the same level of influence in a divisionalized company. The Strategic Apex sets the overarching direction but depends on the Middle Line for execution. Support Staff provides necessary assistance but does not manage divisions directly, and while the Operating Core is foundational to producing the goods and services, the Middle Line