Baobab Enterprises is a mid$-$sized company based in Johannesburg, South Africa. It specialises

in the production and sale of eco$-$friendly home appliances tailored to the African market. As

Baobab Enterprises has grown over the years, the need to organise its operations efficiently has

become more pressing. The company currently operates using a functional organisational

structure with departments such as marketing, finance, production, and sales.

However, the management team is considering a shift to a product departmentalisation structure

to better cater to the unique needs of each product line and regional market. Baobab Enterprises

produces three main lines of products: kitchen appliances, cleaning devices, and solar$-$powered

lighting solutions. Under a product departmentalisation structure, each product line would have its

own dedicated team responsible for all functions $($e$.$g$.,$ marketing, production, sales$)$ related to that

product line. The management team believes this shift may allow for greater specialisation and

responsiveness to customer needs. However, they are also concerned about potential challenges

such as duplication of resources, increased operational costs, and potential difficulty in

coordinating activities across different product lines. To aid in their decision$-$making, the

management team has asked for a comprehensive analysis of the potential benefits and

drawbacks of adopting a product departmentalisation structure in the South African market

context.

Analyse the potential challenges Baobab Enterprises may face when transitioning to a

product departmentalisation structure and how can the company mitigate these challenges

to ensure a successful transition.