Under the product structure of divisional organization,
A)duplicating functions is inexpensive.
B)decision making is decentralized.
C)Coordination across product lines is easy.
D)companies suited to stable environments function best.
E)task responsibilities may be ambiguous.

Question

Quizplus · Accepted Answer

The product structure of divisional organization divides the company into smaller divisions based on products, services or geographic locations. Each division operates as a relatively autonomous company with its own functions, such as marketing, sales, and production. Decision-making is decentralized, allowing each division to respond quickly to specific issues and opportunities. However, this decentralization can lead to task responsibilities becoming ambiguous, as each division may have different goals and ways of doing things. Coordination across product lines can also be challenging with this structure. Duplicating functions can also be more expensive due to each division having its own resources and staff. Companies suited to stable environments may perform better in this structure as it allows for a greater focus on product development and marketing.

Under the Product Structure of Divisional Organization