The executive team at a major retailer recently reorganized the company. They decided to departmentalize in a way that would improve responsiveness to the unique demands of customers in different regions of the country. This is especially important because regional preferences are so distinct in their retail category. The company realizes this could create inefficiency because of the duplication of certain activities. In this scenario, the executive team most likely decided to departmentalize by which of the following?
A) customer
B) product
C) specialty
D) location

Question

Quizplus · Accepted Answer

The fact that the company is aiming to respond to regional preferences and wants to avoid inefficiency because of duplication of certain activities suggests that it has departmentalized by location. This means that each region has its own department, which is responsible for the unique demands of customers in that region.

The Executive Team at a Major Retailer Recently Reorganized the Company