107.
(p. 502)
Scenario: Splash Hair Care Inc.
Phenomenally successful, Splash Hair Care Inc. is growing very fast in both sales and number of
employees. It manufactures and sells hair products for youth, male, female, elderly, and ethnic
populations all over the United States and several other countries. So far the company followed a
simple structure. However, with fast-paced growth, it has become a necessity that the company
explores other organizational structures. John, a long-time employee at Splash Hair Care, has
collected information on how some of their competitors have organized their companies. Streaks
Inc. groups their employees by their different areas of expertise such as Marketing, Finance,
Human Resources and Operations. Pure Oil, primarily in the United States, groups their activities
as northeast division, southeast division, northwest division, southwest division, and central
division. Curlz Inc. has organized their employees according to the accounts they serve such as
Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally,
Color Lite International has grouped their business units around popular colors such as Red
Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde
Division.
Which of the following describes Pure Oil’s organizational structure?