Question: 7.1.1.4 Product Structure Like the functional structure, this structure is designed around the specific products. The product structure may have duplication of roles as well

7.1.1.4 Product Structure

Like the functional structure, this structure is designed around the specific products. The product structure may have duplication of roles as well as duplication of functions.

7.1.1.5 Market Structure

Like the product structure, this structure is designed around the specific market or customer base. The market structure may have duplication of roles as well as duplication of functions.

7.2.3 Extended value-stream assessment

The extended value-stream includes both the supplier as well as the customer. Organizations are dependent on the quality of the product and the quality of the relationship for all their suppliers to provide value to the customer. The product quality being pulled to the customer is critical as well as the quality of the relationship. If all parties, supplier, producer, customer are linked together improvements can be made that are beneficial to all. Without a relationship, the transactions become adversarial with each party believing they must win which in turn would cause the other party to lose. The assessment of the extended value-stream is used to determine those relationships and collaborations such that all parties can win.

7.1.1.1 Centralized Structure

The centralized structure is based on the location of decision-making. Organizations that require all decisions come to headquarters for approval this would be considered a centralized structure.

7.1.1.2 Decentralized Structure

The decentralized structure is the opposite of centralized. Decision-making is passed down to specific individuals/roles closer to the information required to make the decision.

7.1.1.8 Matrix Structure

The matrix structure creates a dual reporting structure and is more commonly associated with the high-tech industry. The structure is based on function as well as projects.

Name both an advantage and a disadvantage to each of the structures listed.

a. Product

i. Advantage: ii. Disadvantage:

b. Centralized

i. Advantage: ii. Disadvantage:

c. Decentralized

i. Advantage: ii. Disadvantage:

d. Matrix

i. Advantage: ii. Disadvantage:

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