Question

Aeronautics Inc., a parts supplier, has departments for government aircraft and contracts, large commercial aircraft clients, and small personal aircraft clients. This is an example of ________ departmentalization.

A) product
B) function
C) geography
D) customer
E) service

Answer 1

Aeronautics Inc. uses customer departmentalization as it has separate departments addressing the needs of different customer groups: government aircraft, large commercial aircraft, and small personal aircraft clients.

Step-by-step explanation:

Aeronautics Inc., by organizing its departments around different types of clients such as government aircraft and contracts, large commercial aircraft clients, and small personal aircraft clients, is engaging in customer departmentalization. This approach is characterized by tailoring services and products to the specific needs of distinct customer groups. By creating separate departments for government, large commercial, and small personal aircraft clients, Aeronautics Inc. can focus on addressing the unique requirements and challenges faced by each customer segment, which is a hallmark of customer-based departmentalization.