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While growth through expansion of same line of business forces a small organization to organize on a functional basis, growth through geographic and product diversification necessitates the adoption of divisional structure. Divisional organization structure takes three forms: product division, geographic division and customer division. Which of the following is an advantage of a product divisional structure?
[A] It addresses the special and widely varied needs of customers for clearly defined services
[B] It encourages the development of expertise in functional areas
[C] It facilitates comparison of the performance of various product lines
[D] It brings about order and clarity to the activities of the organization
Nov 28 2017 Read more Less More
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