The degree of horizontal differentiation in the product structure is higher than in the functional structure.

Question

Quizplus · Accepted Answer

In the product structure, departments are organized by products or services, leading to a higher degree of horizontal differentiation as each department focuses on a unique product line. In contrast, the functional structure organizes departments by functions such as marketing or finance, which may have less horizontal differentiation as each department may serve multiple products or services.

The Degree of Horizontal Differentiation in the Product Structure Is