Which of the following structures is best defined for companies that have distinct products and major divisions around them?

The product structure is particularly suitable for companies that offer distinct products and have major divisions organized around those products. In this structure, each division functions semi-autonomously with its own resources, management, and objectives, centered on its specific product line. This focus allows divisions to respond quickly to market changes, develop specialized marketing strategies, and effectively allocate resources where they are needed most. The independence of each division often leads to increased accountability, as managers are directly responsible for the performance of their product line.

By contrast, other structures such as functional, matrix, or territorial have different organizational orientations. Functional structures organize around departments like marketing, finance, and production rather than individual products, which can create siloes that hinder product-focused strategy. A matrix structure combines functional and product elements but can lead to confusion and conflict in authority, while a territorial structure is centered on geographic regions rather than product categories, making it less ideal for companies with diverse product offerings. Overall, the product structure efficiently supports distinct product lines and has proven to be effective for organizations with a well-defined array of products.