Chapter 2 Flashcards
What is the structure of a entrepreneurial structure?
For small businesses. Director is very hands on.
What are the advantages of an entrepreneurial structure?
1) Quick decisions
2) More responsive to changes
3) Good control
What are the Dis-advantages of an entrepreneurial structure?
1) Too centralized
2) Lack of career structure (no ladder)
3) Cannot cope with diversification or growth
What is the structure of a functional business?
There is a board of directors then multiple departments underneath e.g., marketing, production, finance, personnel
What is a functional structure most suitable for?
not significantly diverse business’
What are the advantages of a functional stucture?
1) Standarised of processes
2) Economies of scale
3) Specialists more comfortable
What are the dis advantages of a functional stucture?
1) Empire building
2) Conflicts between functions
3) Cannot cope with diversification
What is a divisional structure?
a system in which a company segments its employees based on products or markets, as opposed to their job roles. e.g., geographical
What are the advantages of a divisional structure?
1) Enables product growth
2) Clear responsibility and accounting
3) Training of general managers
What are the dis advantages of a divisional structure?
1) Potential loss of control
2) Lack of goal congruence
3) Duplication of effort
What is a matrix structure?
a combination of two or more types of organisational structures.
What are the advantages of a matrix structure?
1) Flexibility
2) Improved communication
3) Particularly useful for projects and temp teams
What are the dis-advantages of a matrix structure?
1) Dual command (confusion)
2) Time consuming meetings
What is a boundary less stucture?
Unstructured with a focus on flexibility.
What are hollow organisations?
Split functions into core and non-core activities (these are outsourced)
What are non-core activities?
Payroll, HR and security
What are virtual organisations?
Outsources many of its functions and simply exists as a network of contracts e.g., shop online
What are modular organisations?
Manufacturing company is broken down into components. Each component is made by the company or outsourced e.g., making a phone
What are Mintzberg’s building blocks?
1) Ideology
2) Strategic Apex
3) Middle line
4) Operating core
5) Technostructure
6) Support staff
What is ideology?
Culture, value
Who are the support staff?
Canteen, legal advice - normally outsourced
What is the technostructure?
Skilled staff
- HR, IT (not involved making product
What is Mintzberg’s Building blocks?
Different businesses have their own key building block and their own co - ordinating mechanisms
What is a entrepreneurial businesses key building block?
Strategic apex
What is a divisionalised businesses key building block?
Middle line
In a simple structure which block dominates?
Strategic apex
what is the simple structure known as?
Entrepreneurial structure
What kind of structure does a simple structure have?
simple, flat structure
Describe the simple structure?
One large unit with one or a few top managers.
Relatively unstructured and informal and the lack of standarised systems allow the organisation to be flexible
what is an example of a simple structure?
young company that is tightly controlled by its owner
In a machine bureaucracy which block dominates?
technostructure
Describe the machine bureaucracy?
Very formal work.
Many routines and procedures of decision making tends to be centralised
What is an example of a machine bureacruacy?
Large manufactures are common e.g., government agencies
What dominates in a professional bureaucracy?
Operating core
What is the difference between the professional bureaucracy and machine bureaucracy?
The professional organisations rely on highly trained professionals who demand control of their own work making it de-centralised
What is an example of professional bureaucracy?
Schools, uni, accounting and law firms
What dominates in a divisionalised?
Middle line
Describe a divisionalised structure?
If an organisation has many different product line and business units. Own decisions and unique structures
What dominates in a adhocracy structure?
Support staff/ operating core
What kind of decisions are made in a adhocracy structure?
Decentralised and power is delegated to wherever it is needed
What are some examples of a adhocracy structure?
Filmmaking, consulting and pharmaceuticals
What dominates in a missionary structure?
Ideology
What is the missionary structure known as?
Idealistic structure
Describe the missionary structure?
The norms infusing the work in this type of organisation are controlled, usually by whole organisation so that everyone functions according to the same set up of beliefs
What does the span of control refer to?
No. Of employees
What does the scalar chain refer to?
Level of employee
What is shared service centre approach?
Involves restructuring the provision of certain services within the organisation so that the service is centralised into one specific part of the organisation
What is out sourcing?
Contracting out aspects of the work, previously done in house, to specialists providers
What is off shoring?
Relocation of corporate activities overseas
What are the advantages of off shoring?
Cheaper, faster if centralised, technology allows it to work well
What are the disadvantages of off shoring?
Cultural, language/time zone, job losses, foreign exchange risk
What does centralised mean?
Hierarchy, decision making structure. Mostly small businesses, little room for error
What does decentralised mean?
Operated on deleted decision flexibility, open communication, manager run dep as see fit bit with guidelines
What does the Anthony triangle do?
Takes a hierarchical view of management structure with many operational decisions at the bottom, some tactical decisions in the middle and a few but important strategic at the top
What are the 4 P’s of marketing?
Product, place, promotion, proce
What are the extra 3 P’s of marketing that service industries have?
People, processes, physical
What are the main aspects of product in marketing?
Product portfolio, width, line, depth
What is penetration pricing?
Competitive prices straight away
What is follow the leader pricing?
What are our competitors doing?
What is loss leader pricing?
Companies deliberately sell products at a loss
What is variable pricing?
Inflicting demand e.g., train off peak and peak
What is promotion?
Making people aware of the products.
What are the key elements to promotion?
Awareness, interest, desire, actuon
What is place in relation to marketing?
Where and how do we distribute and sell
What is zero level distribution?
Customers can buy directly from supplier
What is one level distribution?
Customers go to retailer who have bought from supplier
What is two level distribution?
One or more middle man, supplier -> whole seller-> shop -> customer
