IB - Lecture 10 (Strategy Lecture 3: Internal Analysis) Flashcards
structure of an organization
- the ways in which its labor is divided into distinct tasks
- the ways in which coordination is achieved among these tasks
simple form
- most basic structure
- coordination by direct supervision and mutual adjustment
(small business (family business))
e.g. group work is like this
functional form
- various functions (sales, marketing, HR, operations) are separated in departments
divisional form
- strategic business units or divisions are separate businesses headed by a centralized head office. Some functions are central, some are decentralized and replicated over various units
matrix form
- combines classic structure (functional or divisional) with project-based lines of responsibility
- facilitates knowledge sharing & learning
- however complexity may cause communication problems (who is the boss?)
- there are bosses for the project and on the vertical scale
- like against bureaucracy
innovative form
- also against bureaucracy
- Projects are placed outside the established structure (day-to-day business)
- a temporary mini organization is created in order to done its function quickly
dynamic form
- functions and people are linked in a very direct way
- does not really exist in real life
form in real life
- not many traditional forms
- more mixtures
Types of cultures
power culture: dominated by a single individual or group
( startup: founder)
role culture: reliance on procedures, systems and rules
(bureaucracy, you only do what u are supposed to do)
task culture: focus on tackling identified tasks/projects
(NASA, ambitious SMEs)
personal culture: organization is just a vehicle for individual members to realize own goals
(high-status large consulting firm)
cultural web
observe
long term solvency: debt ratio
total liabilities/ total assets
short term solvency: current ratio
current assets/ current liabilities
very short term solvency: quick ratio
(current assets - inventories)/ current liabilities
