Chapter 7 - Organisational Strategy In Global Environment


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Unformatted text preview: VEL 2. As an organization seeks to find new customer groups for its products, it will need a structure that allows it to serve the needs of its customers. 3. As the pace of new product development in an industry increases, an organization will need a structure that increases coordination among its functions. BUSINESS STRATEGY AND STRUCTURE STRUCTURE Low­cost strategy requires close control of functional activities to monitor and lower costs of product development. – Simple and mechanistic structure with centralized structure seems appropriate Differentiation – dealing with more complex environments – Organic structure is appropriate. STRUCTURE AND BUSINESS STRATEGY STRATEGY BUSINESS-LEVEL STRATEGY AND CULTURE CULTURE Organizations pursuing low­cost strategy must develop values of economy and frugality. – Common language and code of behavior based on low­cost values develop. In differentiators, cultural values of innovation, quality, excellence, and uniqueness are emphasized. CORPORATE-LEVEL STRATEGY CORPORATE-L...
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This document was uploaded on 04/02/2014.

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