Once UF decided to diversify the number of problems it was faced with intensified in the process. Instead of home furnishing, it also started producing and selling cars, fast food and health insurance are also some of its other important genres that it ended up attending to. When they tried to use their functional managers to oversee the production of all four genres, it turned out that no manager had the required skills and expertise for all the desired products and services.
To execute a function effectively, managers must have the experience to work in the specific markets and industries. Hence these were the short comings that they encountered initially to begin with. Using a product structure will make things more easy and approachable for them. Each distinct product line will be placed in its own division where all nitty gritties associated with it will be tended to and looked after accordingly. In this way the managers responsible for each of these divisions will have the liberty to choose the right strategy to pursue in effectively dealing with the success of the product. It is called a self contained division because it brings with it a complete set of functions such as marketing, research and development, finance and son on which it may need to provide and produce the required goods and services efficiently and effectively. A whole change will work where in functional managers will report to divisional managers who in turn would report to corporate managers. Grouping functions into divisions gives it a more focused approach to deal with the products and has a myriad of advantages. It allows functional managers to specialize in only one product area.
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