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The externalization of hierarchy involves the process of making an organization's internal reporting structure, ranks, and chain of command visible to external stakeholders or within the wider company itself. This practice is crucial for fostering organizational transparency, enhancing communication, and ensuring everyone understands the official roles and relationships, contributing to clearer governance and accountability.

Explore the fundamental concepts of 'the firm' to gain insights into its structure, operations, and strategic decision-making. This guide delves into business dynamics, corporate governance, and organizational behavior, offering a comprehensive overview of how companies function in the modern economy.