An organization with a differentiation strategy should:
A) adopt an organic structure and make extensive use of informal communication to coordinate work.
B) centralize and formalize its organizational structure.
C) coordinate employees by writing up formal rules and procedures.
D) switch to a cost leadership strategy as quickly as possible.
E) adopt a mechanistic structure with functional departmentalization.

Question

Quizplus · Accepted Answer

An organization with a differentiation strategy should emphasize innovation, creativity, and flexibility to differentiate its products or services from competitors. This requires an organic structure where decision-making is decentralized, communication flows freely, and collaboration is encouraged. Informal communication supports knowledge sharing and innovation, which is essential for maintaining a differentiation strategy. A mechanistic structure, formalizing rules and procedures, or centralizing decision-making would limit the organization's ability to differentiate.

An Organization with a Differentiation Strategy Should