Structure and Strategy Flashcards
What are the 3 critical structural issues?
- Relationship between strategy and structure
- Measuring the impact of strategy
- Dimensions of structure
Name the characteristics of efficiency
cost per unit, EOS, duplication of resources, coordination cost
Name the characteristics of effectiveness
market share, customer satisfaction, revenue growth, time to market
What structure is used for a low cost strategy?
Centralized process
What are the aspects of a centralized process?
efficiency
EOS and scope
standardization, volume, repeated work
lack of duplication of resources
What structure is used for a differentiation strategy?
Decentralized process
What are the aspects of a decentralized process?
different divisions per product
self contained with diff resources and capabilities
minimum centralized staff
What structure is used for a focus strategy?
decentralized purpose
What can the focus of a focus strategy be?
Customer, Geography, Product
What are the aspects of a decentralized purpose?
dedicated division & staff
focus on object of strategy
minimum centralized staff
What structure is used for a global strategy?
Matrix organization structure
Why is a global strategy used?
need for coordination and dual view of product + geography
What are the aspects of matrix structure?
2 divisions
Self contained with diff resources and capabilities
minimum centralized staff
What are the 4 types of organizations?
Functional, product, geographical, matrix
What are the benefits/issues of a functional organization?
benefits: standard product / efficiencies
issues: slow decision making