Product structure is a hierarchical decomposition of a product, typically known as the bill of materials. As business becomes more responsive to unique consumer tastes and derivative products grow to meet the unique configurations.
What is product divisional structure?
1. Worldwide product division structure - The worldwide product division structure is an organizational structure where the first division after the CEO is by product. 2. Worldwide area structure - The worldwide area structure is really the geographical division structure, and is an organizational structure where the first division after the CEO is by geographical area.
Two types of organizational structures are Matrix and product . Product organizational structure is dependent on the product that the company makes.
Organizational structure best suited for a custom made product should be vertical and mass product and unstable will be horizontal
product orientated disadvantages
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Some of the advantages and disadvantages of product structure are that product structure enables companies to remain flexible in the business environment. Businesses are able to remove or expand specific structures as necessary, but it can prevent companies from achieving broad based goals as each structured unit is operated on its own.
product orientated disadvantages
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Different strategies often call for the use of different organizational structures. A differentiation strategy aimed at increasing quality usually succeeds best in a flexible structure. [ This is a reason a manager might change from a functional to a product, geographic or market structure. A low-cost strategy aimed at driving down costs fares best in a more formal structure.