Explain two advantages of product‑wise departmentalisation for a manufacturing firm that produces smartphones, laptops, and tablets.
Answer
1. Better focus on product development and marketing leads to quicker response to market changes. 2. Clear accountability for each product line improves performance evaluation and profit measurement.
Step-by-step solution
- Identify what product‑wise departmentalisation means: each product has its own department handling all related activities.
- Consider the need for specialized focus on design, production, and marketing for each electronic product.
- State the first advantage: dedicated teams can tailor strategies quickly to technological trends and consumer preferences for each product.
- State the second advantage: financial and performance results can be tracked per product, facilitating clearer accountability and decision‑making.
- Summarise the two advantages in concise sentences as shown in the answer.
Common mistake: Mentioning generic benefits without linking them specifically to product‑wise structure.
Concept tested: Basis of departmentalisation
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