Organizational structure contributes to the strategy formulation by providing the framework of tasks and roles that reduces transaction difficulties and allows employees to think and behave in ways that allow a company to achieve superior performance.

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Organizational structure provides the framework for defining roles, responsibilities, and relationships within a company, which helps to minimize transaction difficulties and enables employees to work together effectively towards achieving strategic goals. This is why organizational structure is an important factor in strategy formulation.

Organizational Structure Contributes to the Strategy Formulation by Providing the Framework