Functional structures work best for firms for all of the following strategies EXCEPT
A) cost leadership.
B) differentiation.
C) related constrained diversification strategy.
D) single or dominant business corporate strategy.

Question

Quizplus · Accepted Answer

Related constrained diversification strategy requires more integrated and coordinated efforts between different business units, which is better suited for a multidivisional structure rather than a functional structure. A functional structure is more suitable for a single or dominant business corporate strategy as it allows for clear specialization and efficient decision-making. Cost leadership and differentiation strategies can also benefit from a functional structure as they focus on operational efficiency or unique product features, respectively.

Functional Structures Work Best for Firms for All of the Following