Solved

Departmentalization at Art & Craft Depot (Scenario)

question 94

Multiple Choice

Departmentalization at Art & Craft Depot (Scenario)
John is president of a chain of stores called Art & Craft Depot. He is aware that the structure of his organization must change in order to compete more effectively in today's global marketplace. However, he is not sure which structure would work best for his company. His company is currently organized under the following departments: accounting, human resources, sales, purchasing, and distribution. However, there are other choices available. He has considered reorganizing around their primary product groups: silk flowers, art supplies, craft supplies, pottery, and fabric. However, equally important are the different types of clients they serve, including homemakers, artists, interior decorators, industrial display contractors, and art schools. The business is growing, and they now have stores in six provinces across Canada. Furthermore, his customers seldom shop for just one type of item. For example, a customer who buys flowers will frequently purchase a vase and other supplies that are required to create a full floral arrangement. This means that individual customers often shop in several merchandise areas of the store.
-If John organizes the new structure based on the provinces served across Canada they would be using ________ departmentalization.

Definitions:

Goods And Services

The tangible products (goods) and intangible activities (services) that fulfill consumer needs and are offered in the market.

Boeing's 787 Dreamliner

Boeing's 787 Dreamliner is an innovative, fuel-efficient long-haul aircraft produced by Boeing, featuring advanced materials and technologies.

Subsidiaries

Companies that are owned or controlled by another company, known as a parent company.

Franchises

are business models where the owner (franchisor) grants permission to individuals or entities (franchisees) to operate a business using their trademarks, systems, and processes.