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Splitting a marketing department into separate European and Latin American units is which kind of departmentalization?
AGeographic, based on segmentation of the units
BProduct, based on the goods that are being sold
CProcess, based on the production steps performed
DFunctional, based on the primary functions used
Answer & Solution
Correct answer: A. Geographic, based on segmentation of the units
1. Europe and Latin America are territories, not products or processes.
2. Grouping units by geographic segmentation is geographic departmentalization.
3. The marketing function is the same in both units, so the split is not functional.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Traditional Structures_
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