A firm should think about the best way to organize to fit its needs. Creative firms need more flexible settings to respond to new markets or with creative new products. Firms with less creative products might need more planning and structure to compete with established companies. A company should think about how it does something better, offers a unique product, or how it creates a new unexplored market. More risk requires greater flexibility. More stable settings require more planning and more structure. The most exciting new firms are those that create or meet new needs not thought of by established firms. Usually these types of firms work better as an adhocratic type of firm with more flexibility and a flatter structure. Creative people work best outside a hierarchical type of setting and like the freedom to explore new ideas and approaches to do things better. How do you classify your business?
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