A functional organization allows for adequate planning as the number of products and markets of a firm increases.

Question

Quizplus · Accepted Answer

A functional organization is not the most suitable for a firm with a large number of products and markets because it can create silos and hinder cross-functional communication and collaboration, which can negatively impact planning and decision-making. A matrix or product-based organization may be more appropriate in such situations.

A Functional Organization Allows for Adequate Planning as the Number