... maximisation is the main objective. Many businesses, especially those involved in merger activity are beginning to move away from the traditional U (unitary) form organisation, and towards the M form (multi divisional). U form businesses have a hierarchy with a chief executive (or equivalent) at the top, and then the next layer is the different functional areas such as marketing, or finance. In many ways, this organisation is 'natural' and permits economies of scale and efficient division of labour, provided the chief executive has sufficient control. As U form enterprises expand, internal efficiency may be reduced due to a loss of control. Eventually strategic decision-making is at risk from deviating from the firm's core objectives. This is why many expanding businesses (including mergers) are moving towards 'M' form structures as it allows a tighter control over business activities. The 'M' form structure involves having many different layers each of which have ...

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