Firms implementing cost-leadership strategies will generally adopt a

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Firms implementing cost-leadership strategies focus on minimizing costs and maximizing efficiency, often by standardizing processes and products. A functional organizational structure, where employees are grouped by their specialized functions (e.g. finance, marketing, operations), is well-suited for this strategy as it allows for centralized decision-making and cost control. Multidivisional and product divisional structures are more suitable for firms pursuing differentiation strategies, while a matrix structure may create confusion and slow decision-making in a cost-focused environment.

Firms Implementing Cost-Leadership Strategies Will Generally Adopt a