Module 3: External Agreeements Flashcards
External Coordination
How much of the firm’s activities are performed inside the organisation vs how many are performed outside of the organisation.
External coordination is an element of organisational configuration ….in addition to understanding strategy (alignment & obliquity), we look towards how many activities the firm performs inside (within) and outside the organisation. Firms that prefer to control their activities are known as ….
Self-contained
Firms that are fine with implementing flexibility and therefore having less control over activities are configured as…
- collaborative community
- confederation
- outsourcer
Self-contained
- Few external people
- Few external activities
Collaborative Community
- Few external activities
- Many external people
Outsourcer
- Many external activities
- Few external people
Confederation
- Many external activities
- Many external people
What is the external activities dimension measuring?
The number of formal & informal contracts for product/services purchased from suppliers; new products or R&D for which you contract.
What is the external people dimension measuring?
The number of people who are not employees but engage in important (essential) activities in the organisation.