Sunset Foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations. However, as a consequence of its highly compartmentalized structure, the firm has found it difficult to transfer information and ideas from one department to the next. With the launch of its new line of breakfast foods coming up, how can Sunset improve its ability to collaborate without sacrificing the benefits of its current structure?

By establishing cross-functional teams.

Explanation:

The Sunset foods company adopts a highly centralized functional structure, which is defined by decision-making as a strict function of the company's top management. In this structure, there is greater hierarchy and control, which makes it difficult for employees to collaborate on important company decisions and consequently contributes to a more rigid and not so innovative work environment.

Therefore, as the company's intention is to improve its ability to collaborate without sacrificing the benefits of its current centralized structure, the most appropriate strategy would be to establish multifunctional teams.

These teams are composed of people from different departments, which could better contribute to the transfer of ideas and information from one department to the other, while there is still managerial control over the teams.