To execute its new strategy of differentiation (based mainly on innovation, flexibility, and responsiveness) while maintaining control on operations and reducing any duplication of resources, an organization has introduced many changes that are relevant to its organizational structure. Which of the following structures would best fit the new strategy?
To execute a strategy focused on differentiation through innovation, flexibility, and responsiveness, while maintaining control over operations and reducing resource duplication, the virtual network approach is most suitable. This structure allows organizations to leverage external partners for various functions, providing flexibility and access to specialized resources without the redundancy of maintaining those resources in-house. The virtual network approach facilitates rapid adaptation to changes and fosters innovation by integrating external expertise. It also effectively maintains control and coordination through core central functions.
Why not A?