BU481 Lecture 11: Lecture 11 - Strategy- Organization Link
BU481 Lecture 11
Strategy- Organization Link
Quiz
• Class 7 – end of next class
Organizational Levers to Support Strategy
• Organizational structure
o Functional – CEO => market, R&D, sales
▪ Good for 2 or fewer products or lines
o Product – CEO => products 1, 2, & 3 => marketing, R&D, sales x 1,2,3
▪ Good for differentiation strategy
o Geographic – CEO => regions 1 & 2
o Matrix
• Management processes
o Decision-making process
o Operating processes
o Performance assessment & Reward processes
• Leadership behaviour
• Each lever influences organizational behaviour and culture
Organization Structure
Org Type
Benefits
Issues
Functional
Standard product – efficiencies
Limited sensitivity to local
markets
Slow decision making
Product
Focus on each product line
Lose efficiencies
Multiple contact points for
customers
Geographical
Good at tailoring to local
markets
Lose efficiencies
Matrix
Flexibility, info flow,
communication
Complex and slow moving
• CEO does’t see what happes iteally, oly etwee functions, products, or regions
• Matrix allows the CEO to see communication throughout the company & all of its areas
• Alig as uh as possile euied apailities ased o poposed stategy with ogaizatio’s
structural characteristics
Management Processes
• Decision-making
o Speed vs. accuracy
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Strategy- organization link: class 7 end of next class. Leadership behaviour: each lever influences organizational behaviour and culture. Management processes: decision-making, speed vs. accuracy, diversity vs. predictability, operating, cross-unit communication and cooperation, assessment and reward, team or individual, quantitative vs. qualitative. Is behaviour consistent with the talk: different cultures = different capabilities. Leverage points for change: org structure, management processes, leadership behaviour. Analysis: strategy-organization link: complete the strategy triangle analysis. Identify the organizational capabilities (structure, processes, leadership behaviour) required to implement a strategy: determine current org capabilities; id gaps. Organization & strategy: business/industry environment = strategic objectives = what you want to do but resources = what you can do. Multi-domestic strategy: achieve max local responsiveness by customizing their product offering and marketing strategy to match different national conditions, started in europe set up operations in colonies but trade barriers come up so local ops gained independence.
