Ch11 - The Management of Strategy (Concepts and Cases) Part...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
1 The Management of Strategy (Concepts and Cases) Part III: Strategic Actions: Strategy Implementation Chapter 11: Organizational Structure and Controls
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 The Strategic Management Process
Background image of page 2
3 GE: Strategy and Structure Changes? Only company listed in the Dow Jones Industrial Index that was also in the original (1986) index Mid-2005 Jeffrey Immelt (who replaced Jack Welch four years earlier) changed GE’s structure from eleven to six strategic business units (SBUs) Why? “…[to] accelerate GE’s growth in key industries” while simultaneously helping the firm become more focused on emerging technologies with significant commercial potential Even with this reorganization, GE continued using related-linked diversification strategy at the corporate level and SBU form of multidivisional structure
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 GE: Strategy and Structure Changes? (Cont’d) Mid-2007 call for GE to sell non-core businesses (i.e., NBC Universal and Money). This would change GE’s corporate-level strategy from related linked to related constrained, necessitating a change in structure from SBU form of the multidivisional to cooperative of multidivisional
Background image of page 4
5 Introduction All firm use at least one business-level strategy Once selected, strategies are NOT implemented in a vacuum! Organizational structure and controls provide framework within which strategies are used
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Chapter 11: Organizational Structure (OS) and Controls Overview: Six content areas Define OS and controls and differences between strategic and financial controls Describe the functional structures for business- level strategies Three versions of multi-divisional (M-form) structure for different diversification strategies OS for implementation three international strategies Strategic networks and implementation of center firm
Background image of page 6
7 Organizational Structure (OS) Specifies firm’s formal reporting relationships, procedures, controls, authority & decision-making processes (i.e., work to be done and how to do it !) Effective use of firm’s strategies facilitated when structure is properly aligned Structural stability : Capacity firm requires to consistently and predictably manage its daily work routines Structural flexibility : Opportunity to explore competitive advantages firm will need to be successful in the future Pioneer Alfred Chandler found organizations change their structures when inefficiencies force them to do so
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Organizational Structure & Controls (Cont’d) Organizational Controls (OC) Guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable Two types include strategic and financial
Background image of page 8
9 Organizational Structure & Controls (Cont’d) Organizational Controls (OC) 1. Strategic controls : largely subjective criteria
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/26/2011 for the course BUS 478 taught by Professor N/a during the Spring '09 term at Simon Fraser.

Page1 / 60

Ch11 - The Management of Strategy (Concepts and Cases) Part...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online