Question:
Also state three advantages of the structure identified in (i) above
not discussed in the given case.
Also state three advantages of the structure identified in (i) above
not discussed in the given case.
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Remember: When departments are formed based on primary jobs or functions (like Production or Marketing), it is always a Functional Structure.
Updated On: Jun 25, 2026
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Correct Answer: 4
Solution and Explanation
Step 1: Concept
Advantages of Functional Structure.
Step 2: Meaning
Highlighting the benefits of functional departmentalization that were not explicitly mentioned in the provided case study.
Step 3: Analysis
• Minimal Duplication of Effort: It leads to minimal duplication of effort, which results in economies of scale and significantly lowers overall business costs.
• Control and Coordination: It makes control and coordination within a department much easier because all employees are performing highly related tasks.
• Due Attention to Functions: It ensures that all the different major functions of the enterprise get their due, specialized attention from top management.
Step 4: Conclusion
These advantages illustrate why the functional structure is highly effective for organizations dealing with single-product lines.
Advantages of Functional Structure.
Step 2: Meaning
Highlighting the benefits of functional departmentalization that were not explicitly mentioned in the provided case study.
Step 3: Analysis
• Minimal Duplication of Effort: It leads to minimal duplication of effort, which results in economies of scale and significantly lowers overall business costs.
• Control and Coordination: It makes control and coordination within a department much easier because all employees are performing highly related tasks.
• Due Attention to Functions: It ensures that all the different major functions of the enterprise get their due, specialized attention from top management.
Step 4: Conclusion
These advantages illustrate why the functional structure is highly effective for organizations dealing with single-product lines.
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