COMM 210 MIDTERM NOTES.pdf

For firms to benefit from economies of scale and

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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
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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
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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
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  • Fall '08
  • Islam
  • Management, shayne cannell-cohen

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