Wiper Inc., a parts supplier, has separate departments for government aircraft and contracts, large commercial aircraft clients, and small personal aircraft clients. This is an example of departmentalization on the basis of ________.
A) product
B) function
C) geography
D) customer
E) service

Question

Quizplus · Accepted Answer

A firm can departmentalize based on the particular type of customer the organization seeks to reach. Microsoft, for example, is organized around four customer markets: consumers, large corporations, software developers, and small businesses. Customers in each department have a common set of problems and needs best met by having specialists for each. Wiper Inc. is departmentalized to meet different customer needs.

Wiper Inc, a Parts Supplier, Has Separate Departments for Government Aircraft