Question

A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country. Which of the following should it eventually adopt to manage the new conditions most effectively? A. Geographic divisional structureB. Client divisional structureC. Matrix structureD. Product divisional structureE. Simple structure

Answer 1

Answer:

D. Product Divisional Structure

Explanation:

As the consumer products firm with a functional structure is expanding from a single product line into several diverse product groups, with most sales within one country. Product divisional structure should be adopted in order to manage the new conditions most effectively. This is kind of an organizational structure where different organizational departments and functions are separately into different divisions. Each division has all the necessary resources and capacities in order to support different that product line or territory, it has its own IT department, finance, HR and marketing department.