Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Which of the following statements about the functional structure of an enterprise is most accurate?

        A)    Within a functional structure the firm is divided into different product divisions.        B)    The profitability of each distinct business is easily discerned when using a functional structure for an enterprise that runs many businesses.        C)    A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area.        D)    Poor organizational control may result from using a functional structure in an organization that runs many businesses.

user-image
Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/06/08
Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

C)    A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area.......................................................

......................................................................................................................................

Muhammad Adeel
by Muhammad Adeel , Sales And Marketing Executive , TANZEEM HEAVY EQUIPMENT RENTAL LLC

Agreed with Mr. Vinod, it is Option C.

Georges Aref Chaoul
by Georges Aref Chaoul , Sales & Media Director , Maids.cc

(C)                 Thank You.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

C)    A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area.

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

(B) and (D) could well apply.

ABB is a typical case of matrix corporate organization developed around a multi-products/services conglomerate that didn't work that well in terms of control, efficiencies and building of a solid company culture and sense of belonging.The corporate matrix role created a feeling of a ship without captain.

My personal belief is that a functional organization is the best option for costs segregation and control with the least cross contaminations, this in addition to all other processes and financial transactions, but more than this is the type of organization which best reflects the people natural tendency to be part of a defined organizational structure with clear lines of communication and view to the achievement; in few words is the organization which reward better the sense of ownership.........and a ship with a clearly identifiable captain.

On multi-products organization again it is just a matter of allocating few costs here an there and possibly taking advantages of some economies of scale and some common functions.

Abdullatif Hassanien Abdou Ismail Lotfallah
by Abdullatif Hassanien Abdou Ismail Lotfallah , Sales & Operations Supervisor , Tayseer Arabian Company TAC

I don't Know . Thanks very much

More Questions Like This