What is a product structure? What are its advantages and disadvantages?
A product is an object that is made available for consumers to use. It is a commodity put out in the market to satisfy the customer's needs and desires. It is made in a natural, manufacturing or chemical process. A product can be physical or virtual.
Answer and Explanation:
Product structure is a type of organizational structure that is formed following a particular product type. The system may have many layers of employees and managers. It is a framework under which separate divisions are created, and focus is shifted on a different service or product.
Advantages of product structure: -
-Product structure helps businesses to focus on particular market segments.
-Customer needs are met more efficiently.
-The firm responds to market changes in a fast manner.
-Companies can encourage healthy competition between all departments.
Disadvantages of product structure: -
-The functions and resources get duplicated.
-The product structure can result in harmful rivalries among members.
-Business loses centralized control over every division.
-The technical expertise gets scattered across smaller departments.
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Learn more about this topic:
fromChapter 9 / Lesson 32
In this lesson, we will provide an overview of the different types of organizational structures a company can utilize. Read on to learn why having an organizational structure is important.