Which of the following is a TRUE statement about organizational structures for implementing business-level strategies?
a. A cost leadership strategy requires a simple structure emphasizing high specialization, centralization, and structured job roles.
b. A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions.
c. An integrated cost leadership/differentiation strategy requires a multidivisional structure using high formalization, decentralized decision making, and vertical coordination.
d. A focused strategy requires a functional structure featuring high levels of both specialization and formalization.
Answer: A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions.