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Unformatted text preview: o Competitive in dynamic environments requiring both responsiveness and efficiency o Kenan-Flagler has a matrix structure Advantages of matrix: o Can meet dual environmental demands o Relatively flexible use of resources o Relatively quick reaction times o Relatively good training for both generalists and spets Disadvantages of matrix: o Lose some economies of scale o Difficult to maintain balance of power o Having multiple bosses can be stressful o Negotiations and conflict resolution can be time consuming and require talented management What happens when economy goes bad? o Functional leaders gain more power (efficiency and cost cutting) When economy grows? o Divisional leaders gain more power (more focus on profits)...
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- Fall '10