Why do the different strategies require the use of different structures?

  • A. A differentiation strategy needs a flexible structure, low cost may need a more formal structure
  • B. Increased vertical integration or diversification also requires a more flexible structure
  • C. A differentiation strategy needs a flexible structure, low cost may need a more formal structure and increased vertical integration or diversification also requires a more flexible structure
  • D. Structure must be more flexible (i.e., decentralized authority) when environmental change is rapid.

Answer: Option C