Strategy In action Flashcards
What is an organization?
A structured framework through which a group of individuals work collaboratively to achieve common objectives
What is implementation?
The translation of a chosen strategy into organizational action to achieve strategic goals and objectives
What are structures?
It gives people formally defined roles, responsibilities and lines of reporting
What are systems?
Support and control people as they carry out structurally defined roles and responsibilities
What are Structural Types?
Various frameworks through which an organization arranges their resources and personnel to achieve specific strategies and goals
Why are structural types significant for strategies?
It provides clarity on roles and responsibilities
It can accelerate the decision making process
It can improve operational efficiency
What are the key components of structural types?
Hierarchy
Communication protocols
Adaptability
What are the 5 types of structures?
Functional
Divisional
Matrix
Project based
Multinational
What are the pros and cons of a functional structure?
Pros:
Specialization
Efficiency
Clear career pathways
Cons:
Departments may focus only on their objectives
Limited interdepartmental communication
What are the pros and cons of divisional structure?
Pros:
Focused expertise
Better customer responsiveness
Performance evaluation
Cons:
Duplication of resources
Potential competition between divisions
What are the pros and cons of a matrix system
It combines functional and divisional with dual reporting relationships
What are the pros and cons of project based structures?
Resources are allocated specifically to project teams that are formed for a particular task or project
Pros:
Focused on outcomes
Promotes innovation and creativity
Cons:
Duplication of resources
Lack of long term commitments and continuity
What is structure fit?
It is the degree to which an organization’s structure supports its strategic objectives.
Importance for this alignment:
- facilitate execution of strategic goals
- enhance communication
- promote efficiency
- misalignment can hinder performance, create confusion, wasted resources
What are the factors that affect fit?
Type of strategy
Market conditions
Organisational size and complexity
What is vertical integration?
Entering activities where the organization is its own supplier or customer
It can be in two directions:
- backward (acquiring supplier)
- forward (acquiring retailer)
