Strategy and Structure

Question 1

Strategy

Answer 1

Strategy is a series of consistent decisions about:

1. Objective = ends (market share, growth, profitability)
2. Scope = domain (customer, geography)
3. Competitive Advantage = means (value proposition, process)

Ultimate aim of achieving sustained superior performance.

Question 2

Planned Approach

Answer 2

Planned approach:

• Collect data – analyse it, rationally decide what is the best thing to do
• Implement
• Centrally coordinated approach (decisions made at top)
• Deliberate, planned, linear
• Formulation and implementation are separate.

Question 3

Emergent Approach

Answer 3

Emergent – Mintzberg 1972:

• Process is iterative
• Process is a result of intuition, opportunism, reflection (i.e. bounded rationality)
• Formulation and implementation are intertwined (strategic decision are shared throughout the organisation)

Question 4

Structure

Answer 4

Division and coordination of labour.
The division of labour and patterns of coordination, communication, workflow and formal power that direct organisational activities.

e.g. job design, information flow, work standards, team dynamics and power relationships.

Powerful tool for change  provides support and infrastructure to facilitate change.

Question 5

Miles & Snow

Answer 5

Structure Follows strategy

Defender:
o Satisfied with current position (mature)  seek revenue
o Goal: Stability and Efficiency.
o Mechanistic (narrow span of control, high formalisation)
Prospector:
o Forefront of innovation and development
o Goal: Flexibility
o Organic structure
Analyser
o Capacity to develop new technologies and products, but also protect what they have already created.
o Observe the market  seek to fulfil demands
o Goal: flexibility and stability
Reactor:
o No strategy. React to market changes

Question 6

7S framework (Waterman)

Answer 6

Structure

Strategy

Style

Staff

Skills

Systems

Superordinate goals

Question 7

Division of labour

Answer 7

Subdivided work leads to job specialisation.

Question 8

Vertical Division

Answer 8

-	Vertical division: organisational hierarchy (flat vs tall) 
o	Apportioning authority for decision making 
o	Manager subordinate relationship 
o	Criticisms of tall: 
	Less timely information 
	Lower quality – filter and distort. 
	More overhead 
	Less connected to the ‘higher ups’

Question 9

Horizontal Division

Answer 9

• Horizontally: functional departments (e.g. R&D, Marketing, Finance, Human Resources) or divisions (markets, products, geography)
  o Labour specialisation (tasks are grouped into jobs  jobs are grouped into departments)
  o Span of control (number of subordinates supervised by a manager)
   Influenced by standardised skills, routines and degree of interdependence.
  o Degree of centralisation (extent to which decision-making power is localised in a particular part of the organisation)
  o Formalisation:
   The degree to which organisations standardise behaviour through rules, procedures, formal training and related mechanisms.
   Can increase efficiency at the cost of flexibility

Question 10

Types of Structures

Answer 10

Functional (based on departmental functions)

Divisional (geographic areas, products or clients)

Question 11

Coordination

Answer 11

a process of facilitating timing, communication and feedback.
Informal communication:
- Sharing information on mutual tasks, forming common mental model
- Relies on knowing people. Integrator: facilitates sharing of knowledge.
- Temporary teams – cross functional teams (opportunity to coordinate through informal communication)

Formality:
- Direction of information flow

Standardisation:
- Standardised work processes, output, skills.