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Organizational structures are influenced by several key factors, including the size of the organization, its strategic goals, and the industry in which it operates. Larger organizations often adopt more complex structures to manage diverse operations, whereas smaller firms might favor simpler, more flexible arrangements. Additionally, the organizational culture and leadership style play significant roles in determining the hierarchy and communication flow. External factors, such as market conditions and regulatory requirements, also impact how an organization is structured to remain competitive and compliant.

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