Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Product categories are determined solely by the organizational structure.
B
Organizational structure can influence the management and classification of product categories.
C
Product categories have no impact on organizational structure.
D
Organizational structure is irrelevant to product categorization.
Understanding the Answer
Let's break down why this is correct
Answer
In many companies the way products are grouped—by type, market, or customer—guides how the organization is arranged, so that each product line has its own team of designers, marketers, and support staff. This product‑centric structure lets each line respond quickly to its specific market needs and keep its goals focused. It differs from a geography‑oriented structure, where teams are organized by region, or a function‑based structure, organized by departments like finance or HR. For example, a smartphone maker might create separate teams for phones, tablets, and accessories, each with its own sales and engineering staff. This alignment makes decision‑making faster for each product group and improves customer focus.
Detailed Explanation
The way a company is organized decides how teams manage and group products. Other options are incorrect because It assumes structure alone decides product categories; It ignores that product lines can influence how a company is organized.
Key Concepts
product categories
organizational structure
Topic
Classification Summary
Difficulty
medium level question
Cognitive Level
understand
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