Which structural approach could allow focus on a separate product and market alongside the core business?

• A. Using a matrix structure that combines functions and product lines
• B. Maintaining a single functional department structure
• C. Merging all functions into one cross-functional team
• D. Creating a separate divisional unit focused on e-waste

Answer: (D)

The main idea here is using a divisional structure to dedicate a part of the organization to a specific product and its market, while still operating alongside the core business. By creating a separate divisional unit focused on e-waste, the company gives that area its own management team, budget, and performance targets. This unit becomes semi-autonomous, so it can tailor its strategy, operations, and marketing to the unique needs of the e-waste market—regulations, customer segments, disposal and recycling processes—without being constrained by the day-to-day demands of the core business.

Having a distinct division also clarifies accountability and allows resources to be allocated specifically for that product line. It can still draw on the parent company's shared services, but its success is measured separately, which helps drive focused innovation and faster decision-making for that market. This setup avoids the potential complexity and ambiguity of matrix reporting, and it avoids the lack of product focus found in a pure functional structure or in ad hoc cross-functional teams.

So, a separate divisional unit focused on e-waste best enables sustained attention and strategic development for that product-market alongside the rest of the company.