As discussed in the case and the text, W. L. Gore and Zappos adopted new organizational structures during periods of growth. In general, most firms follow a predictable pattern of structural change. Which of the following best exemplifies this pattern?

a. Simple to functional to multidivisional structures

b. Ambidextrous to functional to matrix structures

c. Functional to simple to matrix structures

d. Global to functional to multidivisional structures

e. Simple to matrix to functional structures

Answer: a. Simple to functional to multidivisional structures

Explanation:

An Organisational structure refers to how tasks flow in a company to enable them to achieve their goals.

As a company grows, they tend to go through different types of structures which fit their size and enable them to reach their goals better.

They generally start with the Simple Structure which is very common in smaller businesses. Here most decisions are centred on the owner. The owner as the proprietor is in charge of coming up with basically everything to push the business forward.

As the company grows they switch to a Functional Structure. This is when the company will be structured by function to enable better specialization and divisions of labour. Examples of separation by function include, IT Department, Marketing Department, Production Department etc.

If the growth continues the company finds it best to specialize even more and this is when Multidivisional Structures kick in. In a Multidivisonal Structure, the company divides itself into different divisions while maintaining a parent company. The Divisions are fairly independent and pursue different goals and products but all under the direction of the parent company. An example is Google splitting into divisions with Alphabet Inc being the Parent Company and Divisions such as Google, Calico, Deepmind and Waymo being created.