Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?
A) It allows a cost-leader to upgrade core competencies in manufacturing and logistics.
B) It enables a cost-leader to build products that are different from its competitors' offerings.
C) It enables a cost-leader to increase costs above that of its competitors.
D) It allows a cost-leader to operate in a decentralized organizational structure.

Question

Quizplus · Accepted Answer

To effectively implement a cost-leadership strategy, managers must create a functional structure that contains the organizational elements of a mechanistic structure-one that is centralized, with well-defined lines of authority up and down the hierarchy. Using a functional structure allows the cost-leader to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.

Which of the Following Is an Advantage of Using a Functional