BADM-449-Class-15 - Structure and Governance (Chapters 7...

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Unformatted text preview: Structure and Governance (Chapters 7 & 17) BADM 449 Class #15 Business Policy and Strategy Resources and capabilities of Carts of Colorado (What are they?) can be used to produce mobile food stands for any number of restaurants including Pizza Hut, KFC, Burger King, small private restaurants etc. If the company remains independent how it will be decided which restaurants will get to expand using carts made by Carts of Colorado? If the company is acquired by Pepsico, how will things change? The Problem of Resource Allocation Specialization: Adam Smiths Pin Factory Factory #1 Four workers. Each worker makes the entire pin. Factory #2 Worker A cuts wire. Worker B sharpens ends. Worker C stamps heads. Worker D solders heads. Which factory produces more pins in a day? Division of Labor Workers perform a part of the production process Much more productive than if they do the whole process Easily trained Easily replaced Become very efficient Specialized knowledge & skills Specialization necessitates COORDINATION, what could go wrong without it ? Back to the pin factory Coordination: Producing the right number of parts at the right time Making sure that just the right number is put together to match the demand Making sure pin heads fit on pin wires Difficulties in coordinating Understanding what needs to be coordinated Timely communication Communicating across disciplines/specialties Communicating across distance For coordination to be effective we need COOPERATION as well! The more we specialize the more we need to coordinate . This is a tough problem from the standpoint of information processing. Typical mechanisms include: Price Rules and directives Mutual adjustment Routines (repeated mutual adjustment and directives that get institutionalized) The Coordination Problem Self Organizing Team: 10 interactions Hierarchy: 4 interactions Hierarchy: Economizing on Coordination...
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This note was uploaded on 04/02/2012 for the course BADM 449 taught by Professor Echambadi during the Fall '10 term at University of Illinois, Urbana Champaign.

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BADM-449-Class-15 - Structure and Governance (Chapters 7...

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