Kestrel Outdoor makes footwear, clothing and camping gear and sells in three regions. See the same business organised four different ways, then click any team to trace who it reports to.
| Structure | Grouped by | Bosses per worker | Main strength | Main weakness | Best suited to |
|---|---|---|---|---|---|
| Functional | Specialist job (marketing, operations, finance, HR) | 1 | Specialisation and no duplication | Departments become silos and coordinate poorly | Smaller firms with one main product and market |
| Product-based | Product range | 1 | Focus on each product’s customers; divisions as profit centres | Functions duplicated in every division | Large firms with distinct product ranges |
| Regional | Geographical area | 1 | Adapts to local tastes, laws and time zones | Duplication and an inconsistent brand | Multinationals selling into different markets |
| Matrix | Function and project at the same time | 2 | Cross-functional teamwork and flexible use of experts | Two bosses can give conflicting instructions | Project work: product development, engineering, consultancy |