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CIPS L6M10 Exam - Topic 1 Question 26 Discussion

Why did corporations like General Motors and DuPont shift to relatively decentralized organizational structures?
C) To improve adaptability to local conditions
A) To reduce the importance of technology
B) To increase economies of scale
D) To enhance global competition

CIPS L6M10 Exam - Topic 1 Question 26 Discussion

Actual exam question for CIPS's L6M10 exam
Question #: 26
Topic #: 1
[All L6M10 Questions]

Why did corporations like General Motors and DuPont shift to relatively decentralized organizational structures?

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Suggested Answer: C

Corporations structured business units around products and geographic markets to enhance flexibility and local adaptability. [P-102]


by Juliana at Jun 21, 2026, 01:29 PM

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Kassandra
14 days ago
Definitely C! It helps them respond faster to market changes.
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Chantell
19 days ago
Agreed, local conditions matter a lot!
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Laticia
25 days ago
I think they shifted for better local adaptability.
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My
30 days ago
Economies of scale are still super important though!
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Meghann
1 month ago
Really? Decentralization seems counterintuitive for big corporations.
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Malcolm
1 month ago
I thought it was more about enhancing global competition?
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Lauran
2 months ago
Totally agree, local markets need tailored strategies!
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Kasandra
2 months ago
They wanted to improve adaptability to local conditions.
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Taryn
2 months ago
I thought decentralization was mainly for economies of scale, but now I'm questioning if it really relates to local conditions instead.
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Vesta
2 months ago
I feel like this question is similar to one we practiced about global competition, but I can't recall if that was more about D or something else.
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Glynda
2 months ago
I remember discussing how companies like DuPont wanted to be more flexible, so maybe it's about improving adaptability, which aligns with option C.
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Naomi
2 months ago
I think the answer might be C because decentralization helps companies adapt better to local markets, but I'm not entirely sure.
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