Answer to Question 1
A product structure is a divisional structure in which products (goods or services) are grouped into separate divisions, according to their similarities or differences, to increase control.
The three different types of product structures are:
1. Product division structure: An organization whose products are broadly similar and aimed at the same market will choose to centralize support services and use a product division structure.
2. Multidivisional structure: An organization whose products are very different and that operates in several different markets or industries will choose a multidivisional structure.
3. Product team structure: An organization whose products are very complex technologically or whose characteristics change rapidly to suit changing customer needs will choose a product team structure.
Answer to Question 2
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