Which structural approach assists in coordination when a company diversifies or vertically integrates?

The flexible structure is particularly effective in assisting with coordination when a company diversifies or vertically integrates because it allows for adaptability and responsiveness to change. As a company expands its range of products, services, or markets, a flexible structure enables teams to collaborate across various functions and divisions without the rigid constraints that might be found in more traditional structures. This adaptability is crucial in a dynamic environment where quick decision-making and fluid communication between departments can foster innovation and support strategic initiatives.

In contrast, a mechanistic structure is characterized by high levels of formalization and a strict hierarchy, making it less suitable for environments requiring adaptability. A functional structure, while efficient for managing specific functions, may impede inter-departmental communication when diversification is pursued. The matrix structure does offer coordination through dual reporting relationships, yet it can create confusion and conflict due to the complexity of reporting lines. Thus, a flexible structure stands out as the most conducive to the coordination needs that arise from diversification or vertical integration efforts.