Question

Spicy Dish, a large distributor of canned beans and salsa, is organized into four business units: (1) North America Salsa, (2) North America Legume, (3) Latin America, and (4) Europe and Asia. What two types of departmentalization are illustrated in this example?

Answer 1

The options in this question are missing; here is the missing section:

What two types of departmentalization are illustrated in this example?

A. Product and customer

B. Product and geographical

C. Customer and geographical

D. Functional and customer

E. Geographical and functional

The answer to this question is B. Product and geographical

Explanation:

Departmentalization refers to the creation of departments, units, etc. in businesses to better achieve goals and distribute roles and activities. This can be based on location, products, function, etc.

In the case of Spicy Dish, there is a clear geographical departmentalization because this distributor has created units based on location, due to this, the company has a unit in each major geographical region such as North America, Europe, etc. Moreover, this company has created units based on products because in North America they created two different units and each specializes in one of their products (beans/salsa.)