What does technology grouping involve?

• A. Grouping an organisation into divisions that each deal with a different technology or product process used
• B. Grouping an organisation into divisions based on geographic location
• C. Grouping by supplier relationships
• D. Grouping by price points

Answer: (A)

Technology grouping means organizing a company so each division is responsible for a particular technology or production process used to make products or deliver services. This setup lets the division’s specialists focus on optimizing that specific technology, share best practices, and standardize equipment and workflows within the division. It also supports investment decisions, capacity planning, and performance measures tailored to that technology, improving efficiency and coordination where the technology dictates how work is done.

Grouping by geographic location, supplier relationships, or price points organizes the business around location, sourcing, or market strategy respectively, rather than the way work is technically carried out, so they don’t capture the same focus on the production technology.