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Unformatted text preview: Strategic Management ASSIGNMENT NO. 3 Submitted To Prof. Ishfaq Ahmad Submitted By Abdul Karim L1F10MSMG0065 University Of Central Punjab Lahore 1 Question No. 1 List the advantages and disadvantages of a functional versus a divisional organizational structure. Answer: Functional Structure: The most widely used structure is the functional or centralized type because this structure is the simplest and least expensive of the seven alternatives. A functional structure groups tasks and activities by business function such as product/operations, marketing, finance/accounting, R&D, and computer information systems. Advantages: Following are the advantages of a Functional Organizational Structure: • Simple and Inexpensive • It promotes specialization of labor • It encourages efficiency • It minimizes the need for an elaborate control system • It allows rapid decision-making Disadvantages: 2 Following are the disadvantages of a Functional Organizational Structure:...
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This note was uploaded on 10/28/2011 for the course ECONOMICS 105 taught by Professor Ak during the Spring '11 term at Punjab Engineering College.
- Spring '11