Which of the following is a TRUE statement about organizational structures for implementing business-level strategies?
A) A cost leadership strategy requires a simple structure emphasizing high specialization, centralization, and structured job roles.
B) A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions.
C) An integrated cost leadership/differentiation strategy requires a multidivisional structure using high formalization, decentralized decision making, and vertical coordination.
D) A focused strategy requires a functional structure featuring high levels of both specialization and formalization.

Question

Quizplus · Accepted Answer

A differentiation strategy requires a flexible and adaptive functional structure with cross-functional teams, limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions. A cost leadership strategy may require a simple structure with centralization and structured job roles. An integrated cost leadership/differentiation strategy may require a multidivisional structure with high formalization, decentralized decision making, and vertical coordination. A focused strategy may require a functional structure with high levels of both specialization and formalization, but this is not always the case.

Which of the Following Is a TRUE Statement About Organizational