Why is the answer functional structure and not divisional structure?

Dear student, Yes you are right, the answer here should be Divisional structure not functional structure because here he is expanding his business in unrelated business product line like bags and jackets not just shoes, so he need a separate division structure for each product line. By creating a separate division he can- 1)Fix Responsibility-like if a product does not perform Well so he can easily know which product does not perform well by knowing the profit margin of every product line individually and can fix responsibility accordingly. 2)Benefits of specialisation-As every product line will have its own set of team specialized in there work so they can perform different functions accordingly to there specialisation, so benefits of specialisation can be achieved in this structure. Regards.