Which of the following is a TRUE statement about organizational structures for implementing business-level strategies?
A) A cost leadership strategy requires a simple structure emphasizing high specialization, centralization, and structured job roles.
B) A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the R&D and marketing functions.
C) An integrated cost leadership/differentiation strategy requires a multidivisional structure using high formalization, decentralized decision-making, and vertical coordination.
D) A focused strategy requires a functional structure featuring high levels of both specialization and formalization.

Question

Quizplus · Accepted Answer

A differentiation strategy requires a functional structure with broad job descriptions and an emphasis on the R&D and marketing functions. This allows for flexibility and creativity to differentiate product offerings from competitors. A cost leadership strategy may require a more formal structure to control costs, but not necessarily high specialization or structured job roles. A focused strategy would require a structure that is focused on a particular market niche or product line, but not necessarily high levels of both specialization and formalization. An integrated cost leadership/differentiation strategy may require a multidivisional structure for flexibility, but not necessarily high formalization or decentralized decision-making.

Which of the Following Is a TRUE Statement About Organizational