ABC Company is structured with separate departments for military and medical clients. This exemplifies which organizational structure?

The correct answer is customer-based structure, which is characterized by organizing a company around specific groups of customers or client types. In the context of ABC Company, which has separate departments for military and medical clients, this structure allows for tailored services and specialized attention to the unique needs of each client group. By focusing on customer segments, the company can enhance its responsiveness and effectiveness in meeting the demands of its diverse clientele.

This approach fosters better communication and collaboration within each department, as employees can develop expertise specific to their client type. Additionally, it facilitates targeted marketing and service delivery, ensuring that the strategies employed align closely with the requirements and preferences of each customer sector.

While other organizational structures, like functional or product-based, also have their merits, they do not reflect the distinction made by ABC Company in prioritizing customer needs. For instance, a functional structure groups employees based on their functions or roles, such as marketing, finance, and human resources, without focusing on customer differentiation. In contrast, the customer-based structure emphasizes the importance of the client relationship in structuring the organization itself.