Lesson eLearning

Which of the following is a disadvantage of product‑wise departmentalisation in a hotel chain that offers rooms, food services, and spa treatments?

medium MCQ 2 marks Class 12 · Business Studies · Organising
  1. It reduces specialization
  2. It limits flexibility in service delivery
  3. It increases coordination effort across product lines
  4. It lowers marketing effectiveness
Answer
It increases coordination effort across product lines

The correct answer is It increases coordination effort across product lines — Step 5: Finalise the answer as the selected option.

Step-by-step solution

  1. Step 1: Recall that product‑wise departmentalisation groups activities by product type.
  2. Step 2: Identify a disadvantage: such grouping requires coordination between separate product departments to maintain overall service quality.
  3. Step 3: Compare with the given options and select the one that states increased coordination effort.
  4. Step 4: Verify that the chosen option aligns with the definition of a disadvantage for a service firm.
  5. Step 5: Finalise the answer as the selected option.
Common mistake: Confusing advantage with disadvantage

Concept tested: Disadvantages of product‑wise departmentalisation

Published · How this solution was prepared and checked

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