Question：Y plc is a growing organisation which has recently diversified into a number of significant new product markets. It has also recently acquired another company in one of its overseas markets.
What would be the most appropriate form of organisation for Y plc?
A. Functional departmentation
B. Geographical departmentation
C. Divisionalisation
D. Hybrid structure
The correct answer is: Divisionalisation
Rationale:While there may be elements of functional and geographical organisation (leading you to consider a hybrid structure), Y plc's situation suits divisionalisation: more or less autonomous product and regional businesses, with co-ordination from head office. 'Diversification' and 'acquisition' are good pointers to divisionalisation.
Pitfalls:Don't get sidetracked by the link between 'overseas markets' and 'geographical'.