Puts people working on similar projects together, shared goals. May utilize expertise more efficiently. Encourages collaboration, a major advantage. Encourages communication, also a major advantage. Helps develop managers who know breadth of business and drug development.
Managers get to know all aspects of products and functions.
Establishing priorities may be difficult. Relatively slow decision making. Often leads to complex project management. Better informed about technical innovations in specialized areas than product-oriented organizations. Recruiting experts may be easier than product-oriented organizations.