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Bertocchi - Coggle Diagram
Bertocchi
1986
Stronger budgeting
Better IT systems
Functional ➜ Divisional structure
Performance evaluation introduced
Consultants arrive
1942 - 1950
Functional structure
Informal control systems
Small company
Alberto made all decisions
1950 - 1985
International expansion
Still functional
Company grows
Control systems still weak
Conclusion: Why was the divisional structure not ideal?
The divisions were not independent enough.
Roberto paid costs that also benefited Stefano's division.
It was created mainly to make inheritance easier for Alberto's sons.
The external relations department favoured the Classic House Hold division.
Why did Bertocchi introduce a divisional structure?
To clarify responsibilities, adapt to company growth, and improve planning and control systems as the business became more complex.
Why might a functional structure have been better?
Because the product divisions were not sufficiently independent, and coordination could instead have been achieved through committees and product managers without creating separate divisions.