The correct answer is D. departmentation by customers.
Departmentation is the process of grouping activities and resources into organizational units. There are four main types of departmentation:
- Departmentation by function: This type of departmentation groups activities according to the function they perform, such as marketing, sales, or production.
- Departmentation by product: This type of departmentation groups activities according to the product or service they produce, such as cars, computers, or food.
- Departmentation by territory: This type of departmentation groups activities according to the geographic area they serve, such as North America, Europe, or Asia.
- Departmentation by customers: This type of departmentation groups activities according to the type of customer they serve, such as businesses, consumers, or government agencies.
Departmentation by customers is the most appropriate type of departmentation when the organization’s primary focus is on meeting the needs of its customers. This type of departmentation allows the organization to tailor its products and services to the specific needs of its customers. It also allows the organization to better understand its customers and their needs.
For example, a company that sells products to businesses may choose to departmentalize its sales force by industry. This would allow the sales force to become experts in the needs of a particular industry and to develop relationships with key decision-makers in that industry.
Another example is a company that sells products to consumers. This company may choose to departmentalize its sales force by geography. This would allow the sales force to become experts in the needs of consumers in a particular geographic area and to develop relationships with key decision-makers in that area.
Departmentation by customers can be a very effective way to organize an organization. However, it is important to note that this type of departmentation can also be expensive. This is because it requires the organization to create separate departments for each type of customer. Additionally, this type of departmentation can be difficult to manage. This is because it requires the organization to coordinate the activities of multiple departments.