Exam 13: Designing Organizational Structures

Diversified Technologies,Inc.(DTI)makes four types of products,each type to be sold to different types of clients.For example,one product is sold exclusively to automobile repair shops,whereas another is used mainly in hospitals.Customer expectations and needs are surprisingly similar throughout the world.However,the company has separate marketing,product design,and manufacturing facilities in North America,Europe,Asia,and South America because,until recently,each jurisdiction had unique regulations governing the production and sales of these products.However,several governments have begun the process of deregulating the products that DTI designs and manufactures,and trade agreements have opened several markets to foreign-made products.Which form of departmentalization might be best for DTI if deregulation and trade agreements occur?

One problem with a functional structure is that:

Organizational strategy influences both the contingencies of structure and the structure itself.