For firms to benefit from economies of scale and

This preview shows page 5 - 7 out of 9 pages.

For firms to benefit from economies of scale and scope their must be 1. Flow of materials: must be kept constant 2. National and international marketing and distribution functions must be created 3. Teams of lower and middle managers need to be recruited Secondary Claims: 1. Once a firm loses the opportunity to be a first mover, it is difficult to regain competitive advantage 2. Entrepreneurial companies that do not make investments to create organizational capabilities cannot achieve long-term success 3. Growth through unrelated diversification is a poor corporate strategy 4. Business Owenership patterns have dimished the likelihood of many firms’ long-term success Important Concepts: Economies of scale & economies of scope Functional divisions, management hierarchy & geographical expansion First movers Challengers Research & development (innovation) Related & unrelated diversification Separation of top and middle managers (in the case of unrelated diversification) Entrepreneurial enterprise (staying small) Stock market pressure (due to ownership pattern ) Short-term thinking (due to market pressure ) Chapter 3: Structure, Function and Growth of Firms Downloaded by shayne cannell-cohen ([email protected]) lOMoARcPSD|2347638
Image of page 5

Subscribe to view the full document.

Greiner: Structure, Function and Growth of Firms A Theory of organization life cycles, with a focus on growth Major Claims: Organizations grow through a series of evolution and revolution phases that are function of the age and the size of the organization Management practices that work well in one phase bring on crisis in the next Organizational growth is characterized as a series of developmental phases Primary Concept: Age: Size: Stages of Evolution: Stages of Revolution: Growth Rate of industry Management Style Organizational Structure 5 Phases of Growth: (exact name, what is happening, issues that lead to crisis, crisis name, required solution for crisis) 1. Creativity Crisis of leadership Downloaded by shayne cannell-cohen ([email protected]) lOMoARcPSD|2347638
Image of page 6
2. Direction Crisis of autonomy 3. Delegation Crisis of control 4. Coordination Red tape crisis 5. Collaboration ? Secondary Claims: - Organizations should not try to skip phases - Top Managers whose style is no longer appropriate should remove themseleves - Growth is not inevitable Advantages of Large, Bureaucratic Organizations Hierarchical Authority: Promises control and responsibility Specialization of sub-units Promises accountability, control and expertise Management by rules
Image of page 7
You've reached the end of this preview.
  • Fall '08
  • Islam
  • Management, shayne cannell-cohen

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern