Refer to the Scenario Below to Answer the Question That

question 148

Multiple Choice

Refer to the Scenario below to answer the question that follows.
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.
-The current structure of Art & Craft Depot is based on ________ departmentalization.

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

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Definitions:

Market Price

The current value at which a commodity, security, or service can be bought or sold in a marketplace.

Economic Growth

An increase in the economic output and wealth of a country, typically measured by the gross domestic product (GDP).

Natural Capital

The world's stocks of natural assets which include geology, soil, air, water, and all living organisms.

Gross Domestic Product

The total value of all goods and services produced within a country in a specific time period, a measure of economic performance.