Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?
A) It allows the firm to create incentives to foster process innovation in order to drive down cost.
B) It allows the firm to reduce its cost below that of competitors while offering acceptable value.
C) It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.
D) It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.

Question

Quizplus · Accepted Answer

Using a functional structure with an organic organization allows the differentiator to nurture and constantly upgrade necessary core competencies in R&D, innovation, and marketing. The functional structure should be set up to allow the firm to reap economies of scope from its core competencies, such as by leveraging its brand name across different products or its technology across different devices.

Why Does a Firm Use an Organic Organization Combined with a Functional