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8Structure__Strategy - Strategy& Structure Strategy Dr...

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Unformatted text preview: Strategy & Structure Strategy Dr. Nguyen Kiem Than What Comes First? What Strategy then Structure? Part of Implementing Strategy topic Restructuring, Reorganization, Restructuring, Reengineering generally follow new Strategic Direction Strategic Massive shift in markets leads to crisis Massive and losses, which prompt strategy reformulation then structure change and personnel change personnel Process & Structure Process Changes in Environment – Fast or Slow New Strategic Direction Process (Flow) Structure (Frame, Canal) Structure to Fit Structure Growth or Retreat Strategy by – – – – – Increasing or decreasing size Moving in or out of geographic region Adding new product market (or withdrawing from) Forging or breaking alliance with partners M&A - Divestiture Need to centralize (tighten control) to break and Need remake existing structure remake Or to further delegate due to increasing diversity Or and complexity of decision making process and Structural Factors Structural Factors having impact on Structure: – – – – – – Size Geographic market coverage Product diversity Cultural divergence Legal framework Complexity of Process and System E.g. Civilization waves – CEO style and preference – his imprint – What else? Authority System Authority Hierarchical Organization – Mechanistic – Hierarchical Top down – Stable environment Top Networked Organization – Organic – Networked Lateral – Fast changing world Lateral Matrix Organization – Complex – Multidimensional market – 2,3,4 dimensions – One person – multiple bosses – Dual, triple, One reporting relationship reporting Ways to Structure Ways Different ways to structure organization – By Business Unit – By Function – By Geography – By Product or Service Market M&A Examples M&A Acquisition of unrelated businesses in an M&A Acquisition mania – growth through acquisition strategy mania At issue: decision-making overload at the top – Breakdown of communication between top Breakdown management at corporate level and operating management in the divisions management – Top managers had little knowledge of technological Top processes and markets of acquired businesses processes – Senior executives have no product-specific experience Senior to evaluate proposals and to monitor performance of their operating managers Corporate Structure Centralized or Decentralized Structure Corporate Center Tight Control SBU A or Region 1 Autonomy Loose Control SBU B or Region 2 Autonomy SBU C or Region 3 Firm Environment Market A-1 Market B-2 Market C-3 CHAPTER International Structure Generic Organizational Models for International Firms 10 Barlett and Ghoshal, 1995 De Wit & Meyer Strategy – Process, Content, Context The International Context CHAPTER International Structure Characteristics of Generic Organizational Models De Wit & Meyer Strategy – Process, Content, Context 10 The International Context Honda Matrix Structure ...
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