A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country.What form of departmentalization should it eventually adopt to manage the new conditions most effectively?
A)Divisional geographic structure
B)Network structure
C)Matrix structure
D)Divisional product structure
E)Keep the functional structure

Question

Quizplus · Accepted Answer

As the company is expanding from a single product line into several diverse product groups, the most effective departmentalization approach would be to use a divisional product structure. This structure allows each product group to have its own department, which can focus exclusively on the needs of that specific product line. This departmentalization approach will also help to improve efficiency and effectiveness in managing the diverse product groups, which will be important for the firm's success in the long run.

A Consumer Products Firm with a Functional Structure Is Expanding