EADS Astrium's Project Structure (Mini-Case Study: 6.1)

Q1. How would you classify the kind of matrix that EADS Astrium uses for organizing its projects?

I can classify this matrix as a strong matrix structure, because  as mentioned the authority lies with the project managers and some specialists when they are transferred to a project, and most likely these projects will have more control over the projected revenue.

Q2. Why would using a functional structure not make sense?

The functional structure is used by businesses that have a top-down flowchart with a high ranking executive at the top, and multiple middle managers. This approach can be applied better while a structure is operating in a stable environment and business strategies are less affected to change. The level of bureaucracy here will make it difficult to respond to market change  quickly, and when product development is linked to novelty and innovation this type of structure will lower the communication level, and decreases the flexibility in terms of a project like EADS.

Eventually, due to the size and complexity of EADS, and while operating in an industry that is driven by a highly complex international projects, a functional structure will not do the required job, and  a matrix structure will be more suitable to operate within.