Which organizational structure focuses on dividing a business by specific products offered?

The correct choice pertains to an organizational structure that specifically focuses on dividing a business by the products it offers. This approach, known as the product structure, allows a company to organize its operations around various product lines. Each product division operates with a degree of autonomy and is responsible for the entire process from development to marketing and sales.

This structure is highly beneficial for companies that have diverse product offerings as it promotes specialization and can lead to more effective decision-making and resource allocation specific to each product line. It enables teams to focus on the products they are assigned, fostering innovation and responsiveness to market changes.

In contrast, other organizational structures emphasize different aspects: functional structures group employees based on their specialized roles within the business, territorial structures divide operations based on geographical areas, and matrix structures combine elements of both functional and product designs, creating a complex framework for managing resources and projects. Each of these alternatives lacks the focused product-centric organization that the product structure provides.