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Chapter 8

BU481 Chapter Notes - Chapter 8: Organizational Chart, Nestlé, Profit Sharing


Department
Business
Course Code
BU481
Professor
Karin Schnarr
Chapter
8

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CHAPTER #8: STRATEGY & ORGANIZATION
Organizational Capabilities
- Innovation - capacity to stimulate and support strategies based on new ideas, new
markets, new processes, new products. Ex. W.L. Gore
- Productivity - capacity to stimulate and support strategies based on cost efficiency and
price. Ex. Wal-Mart
- Speed - capacity to stimulate and support based on speed first with new products, first
to develop new technologies, first to gain government approvals, offer fast response to
customers. Ex. FedEx
- Cross-Cultural Effectiveness - capacity to stimulate and support based on unusually
effective cooperation between employees of different cultures. Ex. Nestle
- Cross-Unit Synergies - capacity to stimulate and support based on seamless cooperation
and support between different units in the company - Ex. Disney
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Organizational Capabilities Model
Organizational capabilities are based on the behaviour of employees, which in turn, is
influenced and supported by the culture of the organization. For example:
Behaviour readily observable behavior
- How much energy is put into various aspects of their job
- How subordinates are managed
- How much attention is given to external issues
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find more resources at oneclass.com
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