Departmentalization at Art & Craft Depot (Scenario)
John is president of a chain of stores called Art & Craft Depot. He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace. However, he is not sure which structure would work best for his company. His company is currently organized under the following departments: accounting, human resources, sales, purchasing, and distribution. However, there are other choices available. He has considered reorganizing around their primary product groups: silk flowers, art supplies, craft supplies, pottery, and fabric. However, equally important are the different types of clients they serve, including homemakers, artists, interior decorators, industrial display contractors, and art schools. The business is growing, and they now have stores in six provinces across Canada. Furthermore, his customers seldom shop for just one type of item. For example, a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement. This means that individual customers often shop in several merchandise areas of the store.
-If John organizes the new structure based on homemakers,artists,interior decorators,industrial display contractors,and art schools,they would be using ________ departmentalization.
A)product
B)process
C)functional
D)customer

Question

Quizplus · Accepted Answer

Customer departmentalization would be the best choice for Art & Craft Depot as their customers are diverse and often shop in multiple merchandise areas. By organizing their departments based on customer groups such as homemakers, artists, interior decorators, industrial display contractors, and art schools, the company can better cater to the specific needs and preferences of each customer group. This can lead to improved customer satisfaction and loyalty, thus helping the company to compete effectively in the global marketplace.