Now, they're sitting on these fully functional lines that are ready to run parts and nobody is buying them.

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In one scenario, Microsoft would be divided along functional lines: one company that makes applications software, one built around the Internet and other new media, and one that just does Windows.

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To overcome these flaws, explains Jay Galbraith, a noted management consultant, most big companies move back and forth between a decentralised organisation along lines of business and a centralised functional structure.

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