Departmentalization at Art & Craft Depot (Scenario)

question 39

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 bases the new structure on silk flowers,art supplies,craft supplies,pottery and fabric,they would be using ________ departmentalization.

• A)product
• B)process
• C)functional
• D)customer

Identify factors affecting stock prices and investor decisions.

Understand the concept of agency problems and potential solutions.

Acknowledge the importance of ethics in corporate governance and its impact on investor decisions.

Recognize the role of stakeholders in a corporation and the potential for conflicts of interest.

---

Definitions:

Ciliary Muscle

Within the ciliary body of the vertebrate eye, the ciliary muscle controls the shape of the lens.

Iris

Muscular ring that surrounds the pupil and regulates the passage of light through this opening.

Pupil

Opening in the center of the iris of the vertebrate eye.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into electrical signals sent to the brain.