A large Trinidadian conglomerate has separate divisions for food and beverage, construction materials, and financial services, each with its own management team and support functions. This method of internal organisation is BEST described as organisation by:

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Question

A large Trinidadian conglomerate has separate divisions for food and beverage, construction materials, and financial services, each with its own management team and support functions. This method of internal organisation is BEST described as organisation by:

Accepted Answer

Product — Award 1 mark for 'product'. When an organisation is structured around distinct product lines or business areas — each with its own dedicated management and resources — this is organisation by product (also called product departmentalisation or divisional structure). A is incorrect — functional organisation groups all workers performing the same activity (e.g. all marketing staff together) across the whole company, not into separate self-contained divisions. B is incorrect — geographic organisation divides the company by region or territory. D is incorrect — customer organisation separates departments based on different client groups served (e.g. corporate clients vs. retail clients).

Answer

Customer

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Geography

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Product

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Function

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