Lecture 8 Flashcards
What are the componenets of strategy?
Intended and emergent strategy come together to form realised strategy
What are the components of strategy analysis
Identifying current strategy, analysing performance and determining if its satisfactory. If not, internal and external analyses are conducted to see whats wrong and on that basis strategy is formulated and implemented
What are the principles of strategic planning
setting the context (forecasts and assumption)
business unit level plans
business unit level plans integrated into corporate plan
capex budgets made
operational plans and performance targes set
What is needed for strategy execution
Appropriate organistional design
What is needed for organisational design
Cooperation and coordination
What is cooperation about?
Aligning incentives in a way which mitigates conflict within the firm
How can cooperation be achieved?
hierarchical supervision, performance incentives, shared values
What is coordination about
Harmonising activities in the absence of goal conflict
How can be coordination achieved
Rules, directives, routines, persuasion
What are the pros of using hierarchy as a tool for coordination
Hierarchical approach has less interactions and saves on organisation costs; also, modules are more easily replaced due to the lower amount of interdependence
Under what conditions can structure be implemented
Product
geographical
common task
process basis
What is organisational culture composed of
formal and informal routines
Why is organistional culture so important
because the desire to fill a higher purpose within an organisation is difficult to replicate and can yield high competitve advantage
What is the strength of an organisational culture determined by
frequency and intensity of interactions, stability of leadership, average tenure, emotional intensity of historical experiences
How can an organisational culture be read
Studying the physical setting
How people spend their time
What do they talk about
How are new memebers treated
What do leaders say and do
