May be uninformed about industry changes or changes in other specialized areas. Functions are clustered around products. May utilize expertise more efficiently. Encourages cross-functional communication. Helps develop managers who know breadth of business as well as drug development.
Experts have more difficulty maintaining their skills.
Duplication of facilities and personnel. Does not encourage development or hiring of experts. Often leads to over-staffing because of duplication. Often better informed about product needs from customers and outside parties. May be uninformed about technical changes or changes in other specialized areas.