Tarnopol Learning Services (TLS) Offers Tutoring to High School Students

Multiple Choice

Tarnopol Learning Services (TLS) offers tutoring to high school students, college students, and adults returning to school. TLS also bids on government-sponsored contracts. TLS's major product offerings include academic tutoring, standardized test preparation, and admissions consulting. Its operations spread over many geographic regions. Currently, the company is deciding whether it should change from its current approach of organizing by geographical area. A senior manager has predicted that if TLS is not profitable this year and fails to develop any new products, the company will switch to either a functional approach or a product approach. Which of the following, if true, would strengthen the argument that TLS should change its organizational structure?

A) TLS values corporate social responsibility as well as profitability.
B) New product offerings have been neglected as divisions have focused on traditional revenue sources.
C) TLS division managers have focused on short-term revenue at the expense of developing profitable relationships with long-term customers.
D) The markets TLS serves have different requirements in different geographic areas.
E) The expected revenue of some of the regional divisions is higher than that of some of the other divisions.