What is a product structure? What are its advantages and disadvantages?
Question:
What is a product structure? What are its advantages and disadvantages?
Product:
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.
Learn more about this topic:
Get access to this video and our entire Q&A library
What Is Organizational Structure of Management? - Types & Examples
from
Chapter 9 / Lesson 32In 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.
Related to this Question
Product idea generation is the first step in the...
The ________ of a firm determines the scope of the...
Before successfully launching new products,...
In a typical small business, HR functions are...
What is product line architecture?
Define the term creativity with respect to product...
Consider Columbia Sportswear. Analyze the...
Consider Coca-Cola. Analyze the company's product...
Consider Ford. Analyze the company's product...
A typical automobile manufacturer's product line...
Which term is defined as the length of time...
Is project management designed to transfer power...
Steps & Aspects for Starting a New Business
You wake up dreaming of a business venture, think about it often during the day, and wish for it before going to sleep. If you want to be your own boss, there are a few simple steps to help you get ready to start your own business. This lesson will help you get going.
How to Set Realistic Career Goals After Graduation
Everyone has a dream job, but most people won't get it right out of college. This lesson and quiz will look at how to set realistic career goals that will help you advance towards your dream job.
Current Ratio in Accounting: Definition, Formula & Analysis
Learn what a current ratio is and why it is so important to understand when evaluating the health and future of a company. See how the ratio is calculated and what components go into this important figure.
Motivating Employees in the Workplace: Methods & Importance
Motivation is a key task all managers must master. In this lesson, you'll learn about the primary methods of motivating employees and why it's important to do so. You'll be given an opportunity to reinforce your knowledge with a short quiz after the lesson.
Business Environment Analysis: Internal vs External
The internal and external environments have different impacts on your business. The lesson discusses what to look for when doing internal and external analyses and what a business can gain from doing these analyses.
Abiding by HRM Laws Regarding Recruitment & Selection
In this lesson, you will learn about each step of the recruitment and hiring process and what you can and cannot do according to laws and regulations.
Sales Strategy: Definition, Elements & Implementation
Understanding sales strategy and implementing effective plans can help a company sell more of its product and target the appropriate customer. This lesson explains the logic in establishing a sales strategy.
Principles of Organizational Management
Many businesses today are complex systems that require more than ad hoc design and management. In this lesson, you'll discover some of the important principles of organizational management necessary to build a successful organization.
Operations Management: Focusing on Production Efficiency & Customer Satisfaction
Operations is the lifeblood of any organization - how a business works and processes materials and services helps produce its output. In this lesson we will focus on operations and explain the elements present in it.
Organizational Structure: Definition, Types & Examples
Organizational structure influences how a business operates from the inside out. In this lesson, we'll explore the three most common forms of organizational structure relevant to today's business.
Analyzing Financial Statements using Solvency Ratios
In this lesson, we'll define solvency and learn about three solvency ratios: debt, equity, and debt to equity.We'll also learn how to analyze each ratio and determine if a high or low ratio is positive or negative.
Product Life Cycles: Development, Design and Beyond
Have you ever considered that products, like humans, have a life cycle? You will learn about product life cycles and how they are designed and developed. See how a product goes from its introduction to being retired.
Management By Exception: Definition and Limitations
Sometimes things go as planned, and sometimes they don't. In this lesson, you'll learn about management by exception, including how it works and its advantages and disadvantages. You'll also have an opportunity to take a short quiz.
Business Ethics in Contemporary Businesses
The concept of ethics is easy to give examples of but hard to define. In this lesson, we will discuss ethics and how they apply in the business world, as well as discuss an example of an ethical situation using Enron.
How Behavioral Theories Relate to Business Communication
Behavioral theories of management affect workplace communication in positive ways leading to a more productive workforce. Learn about these theories based on understanding employee behavior as it relates to motivation, conflict, and group dynamics.
The Charismatic Leader
Have you ever noticed how some people seem to excel at being liked? Those people have what we call charisma. In this lesson, you'll explore how that charisma can be applied in a business management setting
Business Environments & the Four Functions of Management
The business environment and the forces that push against it are something every manager must deal with and learn to work with. In this lesson, we will detail the four key functions of management and review how different forces present in the business environment impact these four key funtions
Preparing the Basic Income Statement and Statement of Retained Earnings
Preparing financial statements can be tricky. In this lesson, we are going to talk about how to prepare the first two basic financial statements: the income statement and the statement of retained earnings.
Managerial Functions in the International Organization
Every manager focuses on five different aspects of management. These aspects are common knowledge and when used together, they help to create an effective manager. This lesson will address those areas and integrate them into international business.
Breaking Into Foreign Markets: International Marketing Strategies
Companies look to international markets to increase their sales and profits. Market managers must decide on the mode of entry into a foreign market. The options, ranging from least to most risky, are exporting, licensing, franchising, contract manufacturing, joint ventures and direct investments.
Explore our homework questions and answers library
Browse
by subject