Module 3 Flashcards
Organizational theory
Organizations as practical necessities and challenging achievements
Weber’s theory of modern bureaucracy
Structure
-formally defined and interrelated rules and roles
Technocracy
-roles as full time jobs allocated by qualification
Accountability
- central role for organizational record keeping
Bureaucracy
Realization of human potential
Structural contingency theory
Organizations are open systems beholden to their environment
Mechanistic organizations
- centralized decision making
- defined responsibility
- formal rules as a means of control
Organic organizations
- distributed decision making
- fluid responsibilities
- more social forms of control
Configurational theories
Many organizations for both mechanic and organic types
Population ecology
How different organizations fit into different “food chains” or ecologies
Resource dependency
Resources shaped by power dynamics
Institutional theory
Take for granted cultural dynamics and their influence for how we think about organizations
Organizational culture
How organizations develop their own distinct cultures and how they evolve
Sense making and decision making in organizations
How particular understandings emerge and spread
The purpose of strategy
For the pursuit of:
- sustainability
- competing advantage
Sustainable
Want an advantage that will ensure
Competitive advantage
Something rewarding at which we excel relative to our competitors
Positioning
Around a distinct set of activities that create value
Operational effectiveness
Helpful but relatively easy to copy
First order fit
Consistency across activities
Second order fit
Mutual enhancement of activities
Strategic position
External environment
Internal capabilities
External environment
How appealing are strategies in light of external environment
Strategic choices
Corporate strategy
Business strategy
Corporate strategy
Which industry to compete in and how to manage competition in that industry
Industry analysis
Making sense of the industry and what can be done to remain competitive in the industry
Porters five forces
- market power of buyer
- market power of supplier
- risk of substitution
- risk of new entrants
- rivalry between competitors
Market power
Able to capture value
VRIO framework
Resources: anything that can be used to create value
Valuable
Rare
Inimitable
Organized
Combinations in the VRIO framework
Single framework:competitive disadvantage
Organized and valuable: competitive parity
3/4 frameworks: temporary competitor advantage
Organized (VRIO)
Are you doing anything with the resources?
These resources have potential value
Valuable (VRIO)
Resources allows you to achieve something of value
Rare (VRIO)
Something cannot use/ hard for them to use
Inimitable (VRIO)
Difficult for competitors to achieve same result through different means
Tactical analysis
How people are likely to react to our strategies? We need tools to predict their reactions
Game theory
-form of tactical analysis
Various players with their own reactions and actions
Must know players to make good predictions. Then envision the game you want them to play