When an organization with a functional structure diversifies into related product-markets,it generally
A) maintains its functional structure.
B) develops a divisional structure.
C) develops a matrix structure.
D) develops a worldwide product-division structure.

Question

Quizplus · Accepted Answer

A firm with a functional structure may see its initial markets mature, so it looks beyond its present products and markets for possible expansion. A strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisional structure.

When an Organization with a Functional Structure Diversifies into Related