Sunset Foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. However, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. With the launch of its new line of breakfast foods coming up, how can Sunset improve its ability to collaborate without sacrificing the benefits of its current structure?
A) by establishing cross-functional teams
B) by switching to a simple structure
C) by switching to a competitive M-form structure
D) by decreasing managers' span of control

Question

Quizplus · Accepted Answer

To overcome the lack of cross-departmental collaboration in a functional structure, a firm can set up cross-functional teams. In these temporary teams, members come from different functional areas to work together on a specific project or product, usually from start to completion. Each team member reports to two supervisors: the team leader and the respective functional department head.

Sunset Foods Relies on a Highly Centralized Functional Structure to Ensure