What weakness was identified in large businesses during the 1980s and 1990s?

Study for the CII Certificate in Insurance - Introduction to Risk Management (I11). Review key concepts, understand risk principles, and test your knowledge with multiple choice questions.

The identification of separate divisions operating independently as a weakness in large businesses during the 1980s and 1990s reflects a significant shift in management practices and organizational structure during that time. Many large companies found that their diverse divisions, while autonomous and specialized, often operated in silos with little communication or collaboration between them. This led to inefficiencies, redundancies, and a lack of coherent strategy across the organization.

The absence of synergy among divisions hindered the organization's ability to respond swiftly to market changes and customer needs, as each division focused more on its individual goals rather than the collective objectives of the company. As the business environment became more competitive and globalized, the need for integrated approaches to management and operations became evident.

In contrast, while insufficient access to international markets, excessive communication among departments, and a lack of product diversity could create challenges, they did not encapsulate the core issues that arose from divisions operating independently. The recognition of this separation in large businesses prompted many organizations to rethink their structural approaches, leading to more collaborative and integrated management styles.

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