Question

one of the major reasons why companies choose a functional structure is because group of answer choices it allows adapting products to country tastes. it enables responding to the needs of different types of customers. it helps balance the strategy with the organization design.

Answer 1

Companies often choose a functional structure to improve specialization and efficiencies within each department, strategically aligning the organization based on its functions and helping to cope with market competition and other external factors.

Step-by-step explanation:

One of the major reasons why companies choose a functional structure is because it helps balance the strategy with the organization design. A functional structure organizes a business based on the various activities or functions that need to be performed, such as marketing, production, and finance. This structure is ideal for achieving specialization and efficiencies within each functional area.

When considering the market structure and production, firms like Amazon succeed due to their effective cost structure and ability to adapt their product offerings and production levels to meet consumer demand at competitive prices. Companies must consider factors such as market power, competition, and the need for structured design processes to make informed decisions on their organizational structures and market strategies.

Adapting to rapidly changing workplace factors, including technology and globalization, firms might choose a functional structure to ensure that the organizational hierarchy aligns well with internal roles and responsibilities, improving decision-making and strategic alignment.