In this type of Organizational structure, the cost may increase since there may be a duplication of activities across products.

Identify the organizational structure.

Divisional Structure

The correct answer is option (3)- Divisional Structure.

In the divisional structure, the cost may increase since there may be a duplication of activities across products.

In a divisional structure, the organisation structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit.
Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources. When an organization grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure. There is Duplication of resources in various departments, hence it is costly.