Which of the following is a pro of the global functional structure?

The global functional structure is designed around various functional areas such as marketing, finance, human resources, and production, which allows for a high degree of specialization within each function. This structure enables organizations to leverage expert knowledge and create efficiencies within their respective functional domains.

This specialization contributes to the effective implementation of strategies that can address specific market needs. Hence, one of the main advantages of this structure is that it allows companies to gain competitive advantages through the depth of expertise in each functional area. While local responsiveness is typically associated with other structures, the efficiency and clarity offered by a global functional structure often lead to better alignment of resources and strategies that can adapt to global operations needs.

In contrast, strong local responsiveness is usually more characteristic of organizational structures that prioritize regional or local adaptation, making it less applicable here. The competition for resources between divisions can also occur as departments may prioritize their own needs over the organization's overall goals. Clear reporting authority is a potential benefit of this structure, but it is not as directly tied to the key advantages that a global functional structure provides. Therefore, while a global functional structure promotes efficiency and specialization, its primary strength lies in fostering a high degree of expertise in specific functional areas that support the larger organizational strategy.