Question

Since an organic structure helps a firm build core competencies in areas such as R D and marketing, this structure is employed by firms that ________.

Answer 1

Firms employ an organic structure to build core competencies in areas such as R&D and marketing, often focusing on a limited range of products or services to gain competitive advantage.

Step-by-step explanation:

An organic structure is typically employed by firms that want to build core competencies in specialized areas including research and development (R&D) and marketing. The rationale behind opting for an organic structure lies in its ability to foster innovation and strategic focus on a firm’s key strengths, which often include a limited range of products or services. This approach aligns with the business strategy of focusing on core competencies to achieve competitive advantage. By honing in on their areas of expertise and continuously improving there, organizations can become more successful than those that spread their resources too thin attempting to manage a wide array of products.