Because controlling the production of many different foods within the same manufacturing unit proved to be difficult and resulted in increasing costs, a packaged food manufacturer created separate product divisions that make frozen vegetables, frozen entrees, canned soups, and baked goods. This design decision will ________ within the organization.
A) decrease horizontal differentiation
B) increase vertical differentiation
C) increase horizontal differentiation
D) decrease vertical differentiation

Question

Quizplus · Accepted Answer

Creating separate product divisions for different types of products increases horizontal differentiation by dividing the organization into subunits based on the types of products or services they produce.

Because Controlling the Production of Many Different Foods Within the Same