Question : A company that makes TVs and refrigerators wants to enter the market with two new items: washing machines and air conditioners. There should be a separate division set up for each product. A female and a person with a disability will be in command of the washing machine and air conditioning divisions, respectively. Which organisational type is best for this business?
Option 1: Functional structure
Option 2: Divisional structure
Option 3: Formal organisation structure
Option 4: Informal organisation structure
Correct Answer: Divisional structure
Solution : According to divisional organisational structure, when a company produces more than one product and is enormous or large, the operations linked to product A are gathered together or clubbed under one department, and the same thing is done. Hence, the correct option is 2.
