Question

Unicorn sports inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. they are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. which approach to departmentalization does the company follow?

Answer 1

Unicorn Sports INC. uses the Customer Departmentalization Approach.

In this approach, company has separate departments for separate line of customers of group of customers. This is done to effectively serve the customers according to their needs.

Like in this example, Unicorn Sports has different departments for different group of clients. They have separate departments for selling their products to Athletes, Sports Teams and people who pursue sports only for leisure. This is how they can focus on potential customers and can serve them effectively.

Answer 2

There are quite a number of departmentalization approaches that a company can use in segmenting the work in their organization. Some of the commonly known ones include functional, process, product, geographic, customer, combined, time, and number.

In the case of Unicorn Sports Inc., the approach that the company uses are called a customer departmentalization. In companies that use customer-type departmentalization, departments are organized by the type or groups of customers that need to be handled by them.