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Several Global Organizations Have Tried Implementing a Matrix Structure to Balance

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Essay

Several global organizations have tried implementing a matrix structure to balance the power of its functional and divisional groups. However, many of these firms experienced problems and eventually switched to a hybrid form of divisionalized structure. Identify some of the problems that these companies may have experienced with a matrix structure.


Definitions:

Accruals

The accounting principle that revenue and expenses are recorded when they are incurred, regardless of when cash is exchanged.

Balance Sheet

A financial statement showing a company's assets, liabilities, and shareholders' equity at a specific point in time, reflecting the financial condition of the company.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services received, but not yet paid for.

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