Why is it often difficult for managers to decide whether to use product or geographic departmentalization?
A) Because consumer tastes are constantly changing
B) Because global competition is so intense
C) Because product and geographic departmentalization each have advantages and disadvantages
D) Because managers in foreign countries overstep their authority and have to be reined in
E) Because communicating with far-flung parts of an organization is now easier than it used to be

Question

Quizplus · Accepted Answer

Product and geographic departmentalization each have their own advantages and disadvantages. Choosing between the two depends on factors such as the company's industry, size, products, and market. Product departmentalization is effective when a company has diverse product lines that require specialized skills and knowledge, while geographic departmentalization is useful when a company operates in different regions that have distinct market conditions and customer preferences. Therefore, managers need to carefully evaluate these factors before deciding which type of departmentalization to adopt.

Why Is It Often Difficult for Managers to Decide Whether