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Several variables influence organizational structure, including the size of the organization, its strategic goals, and the nature of its environment. Larger organizations often require more formalized structures to manage complexity, while startups might adopt more flexible arrangements. Additionally, the industry in which a company operates can dictate its structure, with some sectors favoring hierarchical models and others promoting flat, agile frameworks. Finally, organizational culture and technology also play critical roles in shaping how a company is organized.

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