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A bank organized into retail, asset management, and corporate banking units is grouped on which basis?
AProcess, based on the steps used to make a product
BFunctional, based on the primary functions performed
CGeographic, based on segmentation of the territory
DCustomer, based on the primary type of buyer served
Answer & Solution
Correct answer: D. Customer, based on the primary type of buyer served
1. Retail, asset management, and corporate banking are defined by who is being served.
2. Grouping by the primary type of customer served is customer departmentalization.
3. Process grouping needs production steps, which a bank of this description does not use as its basis.
4. Functional and geographic grouping would name business functions or regions, and neither appears here.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Traditional Structures_
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