Du Pont: The Birth of the Modern Multidivisional Corporation
Posted: 22 Jun 2009
Date Written: August 5, 2008
Du Pont's realization in 1921 that its "U-form" corporate structure was ill-suited its new diversification strategy led to a pioneering new kind of organization - the "M" or multidivisional form - that has been called the most important innovation of capitalism in the 20th century. This case examines how and why this pivotal transformation took place, and what its implications may be for corporations that are trying to align their structure with their strategy as they undergo rapid growth and change.
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