Respuesta :
Functional structures work best for firms for all of the following strategies except related constrained diversification strategy. Hence, option (c) is correct.
A functional structure is a type of business structure that organizes a company into different divisions based on areas of expertise. These departments work as functional units and are overseen by project managers or department heads. In each department, the members of the group report a series of orders to the heads of the departments, where they also report to the senior officials of the company, informing them of the status of their working areas.
With related constrained diversification strategy, a company shares resources and services between its businesses. Cable companies such as Comcast and Time Warner Inc., share resources and technology-based services in their television programming, high-speed Internet connections, and phone service businesses.
Hence, Functional structures work best for firms for:
- cost leadership strategy.
- differentiation strategy.
- single or dominant business corporate strategy
but not for related constrained diversification strategy.
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