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?

Question

Business

Murray

30 January, 11:11

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?

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Rolex · Answer 1

Divisional Product Structure

Explanation:

Divisional product structure functions in the manner that the business is centralized and then the resources are divided into various products depending on the needs of the product.

As the company which aims to produce more than one product and has diverse products, it can centralize the basic functions and then put specific consideration on the individual diverse products.

With this structure the organization can perform in each product segment with the increasing quality and generating greater revenue.