47. An international company has employees organized into departments based on areas of manufactured goods and geographical locations. What is the organizational structure of this company?
Answer: B
The organizational structure of this company is Divisional.
The company is organized into departments based on areas of manufactured goods and geographical locations, which indicates a divisional structure. This type of structure allows for better management and coordination of products in different markets.
A) Matrix
A matrix organizational structure combines elements of both functional and divisional structures but does not specifically organize employees based on areas of manufactured goods and geographical locations. Instead, it focuses on reporting relationships and project-based work, making it unsuitable for this scenario.
B) Divisional
A divisional structure is characterized by organizing departments around specific products or geographical areas, allowing for greater focus and adaptability to different markets. This aligns perfectly with the description of the company's organizational setup.
C) Teams
While team-based structures emphasize collaboration and flexibility, they do not represent a formal organizational structure like the divisional model. Teams can exist within any structural framework but do not define how the company is organized at a departmental level.
D) Functional
A functional structure organizes employees based on specialized roles or functions rather than by product lines or locations. This is not applicable here since the company explicitly divides its workforce by manufactured goods and geography.
Conclusion
The divisional structure is definitively the correct answer as it effectively accommodates the company's organization by products and geography. Other options either misrepresent the company's structure or do not align with the criteria provided in the question.