What is one major challenge faced by ABC Ltd due to its functional structure ........

Business Studies (CUET) ORGANINSING

A large multinational company, ABC Ltd., has a functional structure where employees are grouped based on their specialized skills such as marketing, finance, HR, and production. Each department works independently under its own functional head, ensuring efficiency and expertise. However, over time, conflicts arose because different departments prioritized their goals over organizational objectives. Additionally, the marketing team often struggled to coordinate with the production team, leading to delays in product launches

What is one major challenge faced by ABC Ltd. due to its functional structure?

High flexibility and adaptability

Difficulty in coordination between departments

Lack of specialized expertise

Increased product variety

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Explanation:

Since each department operates independently, they may not always communicate effectively with others.
The paragraph mentions that marketing and production teams struggled to coordinate, leading to delays in product launches.
This is a common issue in functional structures, as different departments often prioritize their own goals rather than organizational objectives.