Question: For this question, we will analyze organizational structures (Chapter 9) along with corporate strategies (Chapter 8). Explain how the functional structure differs from the multidivisional
For this question, we will analyze organizational structures (Chapter 9) along with corporate
strategies (Chapter 8). Explain how the functional structure differs from the multidivisional
structure. A basic guideline for designing an organization is that structure follows strategy
which means that the companys strategy should be selected first and then, a structure is
designed to match the strategy. Explain how a functional structure would be effective for
concentration strategies (i.e., concentrated businesses built on economies of scale) and
how multidivisional structures become more useful as the corporation becomes more
diversified.
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