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Question

"An organisation is manufacturing medicines, cosmetics, and soaps." What kind of organisational structure is suitable for this organisation and why?

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Solution

The divisional organizational structure organizes the activities of a business around geographical, market, or product and service groups. Thus, a company organized on divisional lines could have operating groups for the United States or Europe, or for commercial customers, or for the green widget product line. Each such division contains a complete set of functions. Thus, the green widget division would handle its own accounting activities, sales and marketing, engineering, production

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