Multiproduct - Multiproduct and multiservice companies...

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Multiproduct and multiservice companies would benefit through the divisional structure with departmentalization by- product. “Multiproduct firms use departmentalization by product, in which all activities related to a product or service are placed in one department under one executive or senior manager.” (Baack, Reilly & Minnick, 2014, Ch. 3.3) The strategy would allow each company’s aspect to organize their products and teams, therefore, allowing maximum efficiency and minimal confusion. Other forms of organization could cause confusion, communication failures, and serious failures that could affect an industries’ brand overall. The functional structure “allows for top-level control with expertise maintained in the individual departments.” (Baack, Reilly & Minnick, 2014, Ch. 3.3) This structure allows working individuals in a department or corner store, to answer to an executive at the top of the managerial pile. Divisional structure relates to departmentalization by- product because the divisions or departments can become self-sufficient in its operations. Meanwhile, other
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