Question

Based on the reading of the following, and given that a company is using a product structure, which of the following outcomes would you predict?

Company A produces televisions, stereos, radios, and security systems. They use a product structure that creates separate divisions for each product line. Each product has a team, and each team is responsible for production, production planning, and quality control. The radio team has an inventory of assembled components that are identical to those used by the television team.

A. The radio team will outperform the television team.
B. The television division will spend time doing unnecessary work.
C. Shared services will spot the duplicated effort.
D. Division teams will compete for resources.

Answer 1

The division teams within Company A are likely to compete for resources due to the product structure they are using.

Step-by-step explanation:

Given that Company A uses a product structure with separate divisions for each product line and identical components being used by both the radio and television teams, it is predictable that division teams will compete for resources. This structure, where each team is responsible for production, planning, and quality control, can lead to competition among the teams for resources such as inventory components, production space, and labor. Duplication of effort is also suggested, which can be inefficient, but it isn't directly mentioned that shared services will be in place to spot duplicated efforts nor that one division will necessarily outperform another due to this structure alone.