Question

Select three disadvantages of a product structure organization.

a. it requires top management to maintain strong control over business decisions in each division.
b. it duplicates functions, such as marketing and manufacturing, in separate divisions.
c. it prevents divisions from learning from each other.
d. it creates barriers to communication between divisions.

Answer 1

The product structure organization has disadvantages, including duplication of functions across divisions, barriers to communication, and isolation from learning opportunities, encapsulated under options b, d, and c respectively.The correct answers is options c,b d.

Step-by-step explanation:

Three disadvantages of a product structure organization include:

• Duplication of functions: Each division in a product structure may have its own marketing, manufacturing, and other functions, leading to an increase in costs and inefficiency due to replicated efforts.
• Barriers to communication: Different divisions may develop their own cultures and ways of doing things, which can hinder the sharing of information and best practices across the organization.
• Isolation from learning opportunities: Divisions might be so focused on their own products and performance that they miss out on valuable insights from the accomplishments and failures of other divisions.

The correct option that includes three disadvantages would be b, d, and c.