Solution
Option 1 -> Matrix structure combines functional and divisional structures, with employees reporting to multiple managers. This creates cross-functional teams but increases complexity.
Option 2 -> Functional structure organizes employees by specialized departments (marketing, finance, operations, etc.), with clear hierarchies and expertise grouped together.
Option 3 -> Divisional structure organizes the company into semi-autonomous units based on products, services, markets, or geographic regions, each operating independently.
Option 4 -> Flat structure has few or no levels of middle management between staff and executives, promoting direct communication and decentralized decision-making.
Hence, Option 2: Functional -> Stellar Electronics adopted a functional organizational structure, grouping employees by their specialized functions and expertise into distinct departments, creating clear reporting lines and centralized control. -> correct