Chapter 3 - Strategy, Organizational Design, and Effectiveness Flashcards
External environment
opportunities, threats, uncertainty, resource availability
Internal situation
strengths, weaknesses, distinctive competence, leader style, past performance
Strategic direction
define mission, official goals, select operational goals, competitive strategies
Organizational design
structural form - mechanic vs organic, information and control systems, production technology, HR policies and incentives, org culture, interorganizational linkages
Effectiveness outcomes
resources, efficiency, goal attainment, competing values
Mission
- the organization’s reason for its existence
- goals in the context of org values
Vision
ideology and envisioned future
Types of Goals
- Official
- Operative
- Informal
Official
The formally stated definition of business scope and outcomes the organization is trying to achieve; another term for the mission
Operative
Descriptions of the ends sought through the actual operating procedures of the organization; these explain what the organization is trying to accomplish/ primary tasks
- ex - overall performance (profit), resources, market share, employee dev
Informal
Culture
Purpose of Goals
- Goals → where you want to go
- Act as guidelines for employee behaviour and decision making, provide a standard of assessment
Strategy
the current set of plans, decisions, and objectives that have been adopted to achieve the organization’s goals
Low Cost Leadership
- A strategy that tries to increase market share by emphasizing low cost when compared with competitors products
- EX Walmart
- Comp adv - low cost
- comp scope - broad (competiting in many customer segmetns)
Focused Low-cost leadership
- Focus - the organization concentrates on a specific regional market or buyer group
- EX - West Jet
- comp adv - low cost
- comp scope - narrow (competing in selected customer segment)
Differentiation
a strategy organizations use to distinguish their products or services from others in the industry/sector
- comp adv - uniqueness
- comp scope - broad
Focused differentiation
the organization concentrates on a specific regional market or buyer group
- Four seasons hotel
- comp adv - unique
- comp scope - narrow
Miles and Snow
- prospector
- analyzer
- defender
- reactor
Prospector
- Learning orientation: flexible, fluid, decentralized structure
- Strong capability in research
- Values creativity, risk-taking, and innovation
- EX - Apple
Analyzer
- Balances efficiency and learning
- Maintain stable business while innovating
- Tight costs control with flexibility and adaptability
- Efficient production for stable product lines
- Emphasis on creativity research, risk-taking for innovation
Defender
- Efficiency orientation
- Centralized authority and tight cost control
- Emphasis on production efficiency, low overhead and close supervision
- Seeks stability, holds on to current customers
- Mcdonalds
Reactor
- No clear organizational approach
- Design characteristics may shift abruptly depending on current needs
- Environmental threats are responded to in an ad hoc fashion
