Question

In what kind of structure are functional departments grouped under major product divisions?

Functional
Product or Customer
Geographic
Matrix

Answer 1

Functional departments grouped under major product divisions indicate a Product Divisional structure, allowing for specialization and a focused strategy on each product line.

Step-by-step explanation:

In a corporate structure where functional departments are grouped under major product divisions, the organization is said to follow a Product Divisional structure. This type of structure allows for specialization in product categories, where each division operates almost like its own company with its own functional departments such as marketing, finance, research and development, and human resources. This structure enables a focused strategy on product development and customer service for each specific product division.