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A company that is organized around functional departments...

In a company that is organized around functional departments,

the critical value chain activities tend to be performed more efficiently and effectively
pieces of strategically relevant activities and capabilities often end up scattered across many departments
it is easier to build core competences and competitive capabilities
there is less room for the organization structure to evolve and remain in step with the evolving strategy-executing requirements of an evolving strategy
internal bureaucracies are likely to be small and the decision-making process is likely to be speedy

Solution Summary

The solution examines a companies organization around functional departments.