servicing consumer electronics is so different from selling and servic- ing appliances that he should move to a product structure (see the fig. ure) and create separate sets of functions for each of his two lines of business, ob's Appliances sells and ser vices household appliances such as washing machines, dish- washers, ranges, and refrigerators. Over the years, the company has developed a good reputation for the quality of its customer service, and many local builders patronize the store. Recently, other national retailers, including Best Buy, Lowe's, and Costco, have begun to offer appliances for sale. To attract more customers, however, these stores also carry a complete range of consumer electronics products- televisions, stereos, and comput- ers. Bob Lange, the owner of Bob's Appliances, has decided that if he is to stay in business, he must widen his product range and compete directly with the chains, Lange decides to build a 20,000-square-foot store and ser- vice center, and he is now hiring new employees to sell and service the new line of consumer elec tronics. Because of of his company's increased size, Lange is not sure of the best way to organize the employees. Currently, he uses a functional structure; employees are divided into sales, purchasing and accounting, and repair. Bob is wondering whether selling and Question 1. You are a team of local consultants whom Bob has called in to advise him as he makes this crucial choice. Which structure do you recommend? Why? FUNCTIONAL STRUCTURE Bob Lange Sales Purchasing and Accounting Repair PRODUCT STRUCTURE Bob Lange Appliances Consumer Electronics Sales Purchasing and Accounting Repair Sales Purchasing and Accounting Repair