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A) Within a functional structure the firm is divided into different product divisions. B) The profitability of each distinct business is easily discerned when using a functional structure for an enterprise that runs many businesses. C) A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area. D) Poor organizational control may result from using a functional structure in an organization that runs many businesses.
C) A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area.......................................................
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Agreed with Mr. Vinod, it is Option C.
(C) Thank You.
C) A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area.
(B) and (D) could well apply.
ABB is a typical case of matrix corporate organization developed around a multi-products/services conglomerate that didn't work that well in terms of control, efficiencies and building of a solid company culture and sense of belonging.The corporate matrix role created a feeling of a ship without captain.
My personal belief is that a functional organization is the best option for costs segregation and control with the least cross contaminations, this in addition to all other processes and financial transactions, but more than this is the type of organization which best reflects the people natural tendency to be part of a defined organizational structure with clear lines of communication and view to the achievement; in few words is the organization which reward better the sense of ownership.........and a ship with a clearly identifiable captain.
On multi-products organization again it is just a matter of allocating few costs here an there and possibly taking advantages of some economies of scale and some common functions.
I don't Know . Thanks very much
