Structure and Strategy Flashcards

1
Q

What are the 3 critical structural issues?

A
  1. Relationship between strategy and structure
  2. Measuring the impact of strategy
  3. Dimensions of structure
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2
Q

Name the characteristics of efficiency

A

cost per unit, EOS, duplication of resources, coordination cost

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3
Q

Name the characteristics of effectiveness

A

market share, customer satisfaction, revenue growth, time to market

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4
Q

What structure is used for a low cost strategy?

A

Centralized process

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5
Q

What are the aspects of a centralized process?

A

efficiency
EOS and scope
standardization, volume, repeated work
lack of duplication of resources

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6
Q

What structure is used for a differentiation strategy?

A

Decentralized process

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7
Q

What are the aspects of a decentralized process?

A

different divisions per product
self contained with diff resources and capabilities
minimum centralized staff

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8
Q

What structure is used for a focus strategy?

A

decentralized purpose

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9
Q

What can the focus of a focus strategy be?

A

Customer, Geography, Product

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10
Q

What are the aspects of a decentralized purpose?

A

dedicated division & staff
focus on object of strategy
minimum centralized staff

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11
Q

What structure is used for a global strategy?

A

Matrix organization structure

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12
Q

Why is a global strategy used?

A

need for coordination and dual view of product + geography

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13
Q

What are the aspects of matrix structure?

A

2 divisions
Self contained with diff resources and capabilities
minimum centralized staff

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14
Q

What are the 4 types of organizations?

A

Functional, product, geographical, matrix

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15
Q

What are the benefits/issues of a functional organization?

A

benefits: standard product / efficiencies
issues: slow decision making

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16
Q

What are the benefits/issues of a product organization?

A

benefits: focus on each product line
issues: lose efficiencies + diff contact points for customers

17
Q

What are the benefits/issues of a geographical organization?

A

benefits: good at tailoring to local markets
issues: lose efficiencies

18
Q

What are the benefits/issues of a matrix organization?

A

benefits: efficient and effective
issues: complex and slow moving

19
Q

How are capabilities involved with structure?

A

required capabilities based on proposed strategy should align with organization’s structural characterisitcs.