Question

Diversified Technologies, Inc. (DTI) makes four types of products, each type to be sold to different types of clients. For example, one product is sold exclusively to automobile repair shops, whereas another is used mainly in hospitals. Expectations within each client group are surprisingly similar throughout the world. The company has separate marketing, product design, and manufacturing facilities in Asia, North America, Europe, and South America because, until recently, each jurisdiction has unique regulations governing the production and sales of these products. However, several governments have begun the process of deregulating the products that DTI designs and manufactures, and trade agreements have opened several markets to foreign-made products. Which form of departmentalization might be best for DTI if deregulation and trade agreements occur?

Answer 1

Here, we need to take advantages from both functional structure and Divisional structure, as considering the functional structure, we will make group of employees that consider functional knowledge, specialization, keep strong expertise in several functions like marketing, product design, and manufacturing. Again, we will also consider Divisional structure as we will build group of employees around various geographical areas, such geographical areas could include Asia, North America, Europe, and South America.

Hence, Diversified Technologies, Inc. (DTI) has to follow Matrix Organizational structure or departmentalization as it will take benefits from both functional and divisional structure that will support in the situation of deregulation and trade agreements occurrence.