Which structure is most appropriate for an organization that pursues a low-cost strategy?
A) Geographic
B) Functional
C) Product team
D) Multidivisional

Question

Quizplus · Accepted Answer

A functional structure is most appropriate for an organization that pursues a low-cost strategy because it allows for centralized decision-making and cost control. In this structure, employees are grouped based on their function or expertise, such as marketing or finance, and report to a functional manager who coordinates their activities. This enables the organization to operate efficiently and achieve economies of scale by standardizing processes and procedures across the company. Additionally, a functional structure reduces duplication of efforts and promotes specialization, which can result in cost savings.

Which Structure Is Most Appropriate for an Organization That Pursues