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.

$1\mathrm{.}1.$

Explain how a shift from functional organisational structure to product departmentalisation may impact the company's operations in the South African market? $(10)$

$1\mathrm{.}2$ Given the potential advantages and disadvantages of product departmentalisation,

how would you recommend Baobab Enterprises organise its operations to maintain efficiency while addressing the specific needs of each product line? $(10)$

$1\mathrm{.}3$

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.