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Chapter11OrganizationalStructureandControlsCompetitivenessChapter3InternalEnvironmentChapter2ExternalEnvironmentTheStrategicManagementProcessStrategicIntentStrategicMissionStrategicCompetitivenessAboveAverageReturnsFeedbackStrategyFormulationChapter4Business-LevelStrategyChapter5CompetitiveDynamicsChapter6Corporate-LevelStrategyChapter8InternationalStrategyChapter9CooperativeStrategiesChapter7Acquisitions&RestructuringStrategyImplementationChapter10CorporateGovernanceChapter11Structure&ControlChapter12StrategicLeadershipChapter13Entrepreneurship&InnovationStrategicInputsStrategicActionsStrategicOutcomesStructureTypesAllorganizationsrequiresomeformoforganizationalstructuretoimplementandmanagetheirstrategiesFirmsfrequentlyaltertheirstructureastheygrowinsizeandcomplexityThreebasicstructuretypes:FunctionalStructureMulti-divisionalStructure(M-form)SimpleStructureStrategy&StructureGrowthPatternsSalesGrowthCoordinationandControlProblemsEfficientimplementationofformulatedstrategyMultidivisionalStructureEfficientimplementationofformulatedstrategySalesGrowthCoordinationandControlProblemsFunctionalStructureSimpleStructureSimpleStructureOwner/ManagerOwner/ManagermakesallmajordecisionsdirectlyandmonitorsallactivitiesDifficulttomaintainthisstructureasthefirmgrowsinsizeandcomplexity*Production*Finance*Engineering*Accounting*Sales&Marketing*HumanResourcesFunctionalStructureFirststagebeyondaSimpleStructureAppropriateforsingleordominant-businessfirmsAllowsspecializationoftasksOvercomesinformationprocessinglimitsofsingleowner/managerFunctionaldepartmentheadsreporttoChiefExecutiveOfficerwhointegratesdecisionsandactionsfromacompany-widepointofviewRisksconflictsbetweenmyopicfunctionmanagersProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesFunctionalStructureChiefExecutiveOfficerCorporateFinanceCorporateR&DCorporateMarketingCorporateHumanResourcesStrategicPlanningMarketingEngineeringOperationsPersonnelAccountingFunctionalStructureforCostLeadershipStrategyOfficeofthePresidentCentralizedStaffOperationsismainfunctionProcessengineeringisemphasizedratherthannewproductR&DFormalizedproceduresallowforlow-costcultureStructureismechanical;jobrolesarehighlystructuredRelativelylargecentralizedstaffcoordinatesfunctionsMarketingNewProductR&DOperationsHumanResourcesFinanceR&DMarketingFunctionalStructureforDifferentiationStrategyPresidentandLimitedStaffMarketingisthemainfunctionfortrackingnewproductideasNewproductR&DisemphasizedMostfunctionsaredecentralizedFormalizationislimitedtofosterchangeandpromotenewideasOverallstructureisorganic;jobrolesarelessstructuredMulti-DivisionalStructureEachdivisionisoperatedasaseparatebusinessAppropriateforrelated-diversifiedbusinessesKeytaskofcorporatemanagersisexploitingsynergiesamongdivisionsManagersuseacombinationofstrategiccontrolsandfinancialcontrolsManagerstrytostrikeabalancebetween:CompetingamongdivisionsforscarcecapitalresourcesCreatingopportunitiesforcooperationtodevelopsynergiesThegoalistomaximizeoverallfirmperformanceMulti-DivisionalStructureBalanceonthesedimensionsmaychangeovertimeThedecision-makingofmanagersinaMulti-Divisionalstructuremaybe:CentralizedorDecentralizedBureaucraticorNon-bureaucraticChangesinstrategyDegreeofdiversificationGeographicscopeNatureofcompetitionStructurewillevolveovertimewith:DivisionDivisionDivisionDivisionProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesMulti-DivisionalStructureChiefExecutiveOfficerCorporateFinanceCorporateR&DCorporateMarketingStrategicPlanningCorporateHumanResourcesCooperativeFormStrategicBusinessUnit(SBU)StructureCompetitiveFormVariationsoftheMulti-DivisionalStructureMulti-DivisionalStructure(M-form)Related-ConstrainedStrategyRelated-LinkedStrategyUnrelated/HoldingCompanyStrategyProductDivisionProductDivisionProductDivisionProductDivisionProductDivisionStrategicPlanningCorporateR&DLabCorporateHumanResourcesLegalAffairsCorporateMarketingCorporateFinanceCooperativeFormPresidentRelated-ConstrainedStrategyGovernmentAffairsStructuralintegrationdevicescreatetightlinksamongalldivisionsLargecorporateofficewithR&DlikelytobecentralizedCultureemphasizescooperativesharingPresidentStrategicBusinessUnitASBUFormRelated-LinkedStrategyCorporateFinanceCorporateR&DCorporateMarketingStrategicPlanningCorporateHumanResourcesDivisionDivisionDivisionStrategicBusinessUnitCDivisionDivisionDivisionStrategicBusinessUnitBStrategicBusinessUnitDStructuralintegrationexistsamongdivisionswithinSBUs,butnotacrossSBUsEachSBUmayhaveitsownbudgetforstafftofosterintegrationCorporateheadquartersstaffserveasconsultantstoSBUsanddivisionsCompetitiveFormUnrelated/HoldingCompanyStrategyPresidentLegalAffairsFinanceCorporateheadquartershasasmallstaffFinanceandauditingarethemostprominentfunctionsintheheadquartersDivisionsareindependentandseparateforfinancialevolutionpurposesDivisionsretainstrategiccontrol,butcashismanagedbythecorporateofficeDivisionscompeteforcorporateresourcesAuditingDivisionDivisionDivisionDivisionDivisionCostLeadershipDecentralizationDifferentiationCentralizationMulti-DivisionalStructureThechoicebetweencentralizationanddecentralizationisfrequentlybasedonthebusiness-levelstrategyimplementedineachdivisionComplexMulti-Divisionalstructurefirmsmaybesimultaneouslycentralizedanddecentralized,dependinguponthevariousbusiness-levelstrategiesemployedthroughoutthefirm’sindividualbusinessesMulti-Divisionalstructurefirmsuseacombinationof:FinancialControlsStrategicControlsAttributesofVariousStructuralFormsStructuralCharacteristicsDegreeofCentralizationUseofIntegratingMechanismsDivisionalPerformanceAppraisalDivisionalIncentiveCompensationTypeofStrategyCooperativeM-FormSBUM-FormCompetitiveM-FormCentralizedatCorporateOfficeCentralizedinSBUsDecentralizedtoDivisionLinkedtoCorporatePerformanceLinkedtoCorporation,Division&SBULinkedtoDivisionalPerformanceExtensiveSynergiesModerateSynergiesNonexistentSynergiesFinancialCriteriaStrategic&FinancialCriteriaSubjective/StrategicCriteriaRelated-ConstrainedRelatedLinkedUnrelatedAStructuralevolutionbasedonGeographiclinesusuallyimpliesaMulti-DomesticInternationalStrategyEvolutionofMulti-DivisionalStructureNorthAmericaAustraliaEuropeAsiaLatinAmericaAfricaProductAProductBProductCProductDChiefExecutiveOfficerCorporateOffice(Staff)ImplementationofaMultidomestic

StrategyWorldwideGeographicAreaStructureMultinationalHeadquartersAsiaUnitedStatesLatinAmericaEuropeAustraliaMiddleEast/AfricaGreencirclesindicatedecentralizationofoperationsEmphasisisondifferentiationbylocaldemandtofitacultureCorporateheadquarterscoordinatesfinancialresourcesamongindependentsubsidiariesTheorganizationislikeadecentralizedfederationProductAProductBProductCProductDAStructuralevolutionbasedonProductlinesusuallyimpliesaGlobalInternationalStrategyEvolutionofMulti

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