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Question : A business that produces a well-known toy brand has a solid market reputation. Production, Marketing, Finance, Human Resources, and Research and Development are all handled by various divisions. Recently, it has considered expanding into the production of a new line of electronic toys for which a new market is growing in order to capitalise on new commercial opportunities while also utilising its brand name. The organisational structure that the business should use is:

Option 1: Functional structure

Option 2: Formal Organisation Structure

Option 3: Divisional structure

Option 4: Informal Organisation Structure


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Divisional structure


Solution : In a divisional structure, people are grouped together based on the product or service they provide, not the work they do. For example, a large corporation such as General Electric has divisions for electronics, transportation, and aviation, each with its own team of accountants, marketers, etc. Hence, the correct option is 3.

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