Why does a functional structure rely on a flat organizational structure? A. The work in the organization is centrally coordinated by the CEO. B. It allows for a higher degree of specialization and domain expertise. C. It allows for efficient bottomup and topdown communication. D. It allows for the implementation of a differentiation strategy. functional structure for implementing a differentiation strategy 47. A functional structure is recommended when a firm: 48. Which of the following is an advantage of using a functional structure when pursuing a costleadership strategy? 49. Plow Inc. is a greeting card manufacturing company.
Using the functional structure to implement the differentiation strategy: o Marketing the main function for tracking new product ideas o New product R& D is emphasized o Most functions are decentralized o Formalization is limited to foster change and promote new ideas o Overall structure is organic o Job roles are less structured Using the functional structure for implementing a differentiation strategy
Chapter 11: Organizational Structure and Controls. 2) Describe the relationship between strategy and structure. 3) Discuss the functional structures used to implement businesslevel strategies. 4) Explain the use of the three versions of the multidivisional (Mform) structure to implement different diversification strategies. Differentiation Selection. Better performance, when quantifiable, can provide another option for differentiation. To succeed in implementing a differentiation strategy, the business needs to select one type of differentiation best suited to target market desires, as well as its own financial constraints, and focus its efforts on honing products along that dimension. Using the Functional Structure to Implement a Differentiation Strategy Marketing is the main function for tracking new product ideas. New product R& D is emphasized. Most functions are decentralized. Formalization is limited to foster change and promote new ideas. Overall structure is organic. Job roles are less structured. functional structure for implementing a differentiation strategy Organizational Structure for Differentiation Focus Strategy KACS Szilrd Csaba Functional StructureFunctional structure indicates a more hierarchic organization, where there is a generalmanager or CEO on the top, than there are functional managers or directors (ex: Sales, Marketing, Production, Finance, HR) who report to the general manager.