Question

Suppose that a small company that makes a standardized product is experiencing an increase in sales even though it has a small geographic footprint.Currently, the founder makes all of the strategic decisions but is beginning to feel overwhelmed. She has decided to pursue a cost-leadership strategygoing forward. In order for the firm to achieve its goals, which of the following business-level structures should the firm adopt?

A) an ambidextrous functional structure
B) a centralized functional structurea flexible organic structure
C) a centralized multidivisional structure
D) a simple structure with the founder's imprint

Answer 1

The correct answer is option B) a centralized functional structure

Step-by-step explanation:

A centralized structure is an organisational structure that has the power to make strategic decisions on everything happening in the organisation. From the question given, the founder makes all of the strategic decisions. Therefore, the structure that will be suitable for the founder is the centralized functional structure.