Fundamentals of Strategy Implementation

Question 1

What types of resources can be integrated to create organisational capabilities?

Answer 1

• Tangible (Financial and Physical)
• Intangible (Technology, Reputation, Culture)
• Human Resources (skills, know how etc)

Question 2

What are the Key drivers of organisational design

Answer 2

• Technological and Economic (developments in transportation and communication)
• Legal (legal entity, limited liability)
• Organisational Innovations (structure etc)

Question 3

What are the key differences between mechanistic and organic organisational design?

Answer 3

Task Definition:
Task Feature: Mechanistic (rigid and highly specialised), Organic (Flexible and broad)
Coordination and Control: Mechanistic (rules verbally imposed), Organic (Mutual adjustment, common culture)
Communication: Mechanistic (Vertical), Organic (Vertical and Horizontal)
Knowledge: Mechanistic (Centralized), Organic (Dispersed)
Commitment and Loyalty: Mechanistic (To immediate Superior), Organic (To Orgnaisation and its Goals)
Environment Context: Mechanistic (Stable with low tech uncertainty), Organic (dynamic with tech instability and ambiguity)