Widget Corp

question 33

Essay

Widget Corp. aims to manufacture and sell its products in different countries across the globe. Between divisional structure and functional structure, which one do you think would be a better organizational structure for Widget Corp.?

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Definitions:

Fixed Overhead

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Released Facilities

Properties, equipment, or facilities that are no longer under contract or reserved, and are available for use or lease.

Full Capacity

The maximum level of output that a company can sustain within a given period under normal operating conditions.

Special Order

An order that deviates from the regular product offerings of a business, often requiring unique pricing and terms.