Mars Technology Company produces four types of products . It wants to determine whether to departmentalize by product or by location. If it departmentalizes by product, it will need to hire managers who specialize in each of the four products that are produced at each of the four location (Boston, Chicago, Denver, and Los Angels). These managers would have to travel to each of the four cities periodically to monitor the production and conditions at each division. These managers would focus on the production of the specific product to which they were assigned and would not make marketing or finance decisions. Mars Technology Company decides that the existing top-line manager at each division can adequately monitor the production at the division. Therefore, it decides to continue departmentalizing by location. This avoids the expenses that would be incurred if the new managers were hired, as the expenses of having the managers travel frequently to all four locations.

1.      Why might Mars Technology Company more seriously consider departmentalizing by product if all of its divisions were located in one city?

2.      If Mars Technology Company’s products required specialized managers who knew the details of each product, how might this complicate the decision to departmentalize?