What structure uses customer groups as an organizing principle?

What structure uses customer groups as an organizing principle?

• A. Functional structure
• B. Product-based structure
• C. Customer-based structure
• D. Geographic-based structure

Answer: (C)

A customer-based structure organizes a company around specific customer groups rather than by products, geographic location, or functions. This approach allows businesses to tailor their services and products to meet the unique needs and preferences of different segments of their customer base. By aligning resources and processes to serve customer groups effectively, this structure can enhance customer satisfaction and improve overall service delivery. In contrast, a functional structure organizes by departments, such as marketing or finance, which may not focus directly on customer needs. A product-based structure groups teams by different products offered, which can sometimes overlook the specific needs of various customer segments. A geographic-based structure organizes teams by regions and locations, potentially leading to separated strategies that may not account for the diverse customer groups within each geographic area.

A customer-based structure organizes a company around specific customer groups rather than by products, geographic location, or functions. This approach allows businesses to tailor their services and products to meet the unique needs and preferences of different segments of their customer base. By aligning resources and processes to serve customer groups effectively, this structure can enhance customer satisfaction and improve overall service delivery.

In contrast, a functional structure organizes by departments, such as marketing or finance, which may not focus directly on customer needs. A product-based structure groups teams by different products offered, which can sometimes overlook the specific needs of various customer segments. A geographic-based structure organizes teams by regions and locations, potentially leading to separated strategies that may not account for the diverse customer groups within each geographic area.