A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups,with most sales within the one country.What form of departmentalization should it eventually adopt to manage the new conditions most effectively?
A)Divisional geographic structure
B)Network structure
C)Matrix structure
D)Divisional product structure
E)Keep the functional structure

Question

Quizplus · Accepted Answer

Divisional product structure would be the most effective choice for the firm to manage diverse product groups. This structure groups employees by product line, allowing for greater specialization and focus on the needs of each specific product group. It also allows for greater decision-making authority at the divisional level, which can improve overall efficiency and effectiveness.

A Consumer Products Firm with a Functional Structure Is Expanding