Question : If a firm wants to diversify its business into different products and expand to different territories, which organisation structure would be suited for this form?
Option 1: Divisional structure
Option 2: Functional structure
Option 3: Informal structure
Option 4: Network structure
Answer (1)
10th Jan, 2024
Correct Answer: Divisional structure
Solution :
When the organisation is large in size and is producing more than one type of product then activities related to one product are grouped under one department. In divisional structure new department can be added without disturbing existing departments.
Hence, option 1 is the correct answer.
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