Which grouping refers to departments that each deal with specific products or product ranges?

The correct answer highlights the organizational structure known as product/service grouping, which is designed to align departments or teams around specific products or ranges. This approach allows businesses to focus resources, expertise, and marketing efforts on particular offerings, enabling teams to become specialists in the unique needs and challenges associated with those products.

This type of grouping fosters a deep understanding of the product life cycle, customer preferences, and competitive strategies within specific markets. As departments concentrate on a defined range of products, they can tailor their strategies for development, sales, and aftercare more effectively, enhancing overall efficiency and customer satisfaction.

In contrast, functional grouping typically organizes departments by the function they perform, such as finance, marketing, or human resources, rather than focusing on individual product lines. Customer grouping organizes departments around different customer segments or demographics, while place grouping centers on the geographical areas in which products are sold or distributed. Each of these structures offers different advantages, but for a company looking to develop expertise and effectiveness related directly to its product offerings, product/service grouping is the most suitable approach.