Implement a flat structure with minimal management groups, relying extensively on resource tags for cost tracking and management, despite potential challenges in policy enforcement across subscriptions.

Design a deeply nested hierarchy of management groups that precisely mirrors the organizational structure, potentially complicating policy management and increasing administrative overhead.

Adopt a balanced approach by establishing a moderate number of management groups, complemented by well-defined policies for governance and cost management, ensuring scalability and compliance without unnecessary complexity.

Focus solely on organizing resources within subscriptions and resource groups, disregarding the use of management groups for governance, which may lead to inconsistent policy application and cost management challenges.

Combine the use of a balanced number of management groups with Azure Policy for governance and Azure Cost Management + Billing for monitoring and optimizing costs, ensuring a comprehensive approach to meet organizational requirements.