Question

A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country. Which of the following should it eventually adopt to manage the new conditions most effectively?

a. Divisional geographic structure
b. Network structure
c. Matrix structure
d. Divisional product structure
e. Retain the functional structure

Answer 1

D

Step-by-step explanation:

Network structure: this is a structure where two or more companies combine to produce a good or to provide a service, that is, one company outsources in order to be able to make their product or provide their service.

Divisional geographic structure: this structure groups every function of an organization into divisions. Helpful for companies that operate in different regions.

Matrix structure: in this structure some employees have to report to more than one leader in the company.

Divisional product structure: here employees are assigned tasks based on what goods they produce, the customers they deal with and the areas they serve.

Retain the function structure: this structure divides the company into smaller groups based on specific functions.

The company should adopt the divisional product structure because it is suitable for companies with more than one product. This structure helps to focus on specific market segments and to be able to deal with customers more effectively. Performance of each division is measured and coordinated more easily and focus can be given to each product as needed.

Answer 2

d. Divisional product structure

Step-by-step explanation:

In a divisional product based structure employees are assigned into self-contained divisions according to the particular line of products or services they produce, the type of customers and the geographical region they serve.

Since the consumer products firm is expanding from a single product line into several diverse product groups, the best organizational structure for the firm will be the divisional product structure where each division within the firm is dedicated to a particular product line and employees are assigned to different product lines based on the attributes mentioned earlier in the previous paragraph.