A Consumer Products Firm with a Functional Structure Is Expanding

question 64

Multiple Choice

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)Matrix structure
• B)Network structure
• C)Geographic divisional structure
• D)Keep the functional structure
• E)Product divisional structure

Understand the significance of cross-functional teams in solving complex problems that cut across departmental lines.

Grasp the impact of organizational structures on team dynamics and performance.

Recognize the importance of addressing team members' emotions and feelings during the team development process.

Understand the conditions under which teams are likely to fail at different stages of development.

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Definitions:

Monthly Sales

The total revenue generated from the sale of goods or services within a one-month period.

Net Operating Income

A measure of a company's profitability, calculated as gross income minus operating expenses excluding interest and taxes.

Contribution Format

An income statement format that separates variable costs from fixed costs, emphasizing the contribution margin.

Income Statement

A financial statement that reports a company's financial performance over a specific period, showing revenue, expenses, and net income or loss.