Question

ABC Production ABC Production, 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. What form of departmentalization should it eventually adopt to manage the new conditions most effectively

Answer 1

Divisional product structure

Step-by-step explanation:

Divisional product structure is also called product based structure. It comprises of separate divisions that that function individually and focus on a different product or service.

Each division has a product line they work in, a set of clients they service, and a geographical location.

The major advantage not this type of departmentalization is that each department will more efficient in their service delivery as they specialise on one thing.

This will be the best structure for ABC Production ABC Production who are expanding from a single product line into several diverse product groups, with most sales within one country.