Chapter 11 - Organizational structure and controls. Studying this chapter should provide you with the strategic management knowledge needed to: Define organizational structure and controls and discuss the difference between strategic and financial controls, describe the relationship between strategy and structure, discuss the functional structures used to implement business-level strategies,. | Strategy Implementation What must we do to put the strategy in place, execute it proficiently, and produce good results? Creating FITS between strategy and external environment and creating FITS inside the organization Control, coordination, and motivation issues Components of the Strategy Execution/Implementation Process The Action Agenda for Implementing Strategy The Strategic Management Process Chapter 11: Organizational Structure (OS) and Controls Overview: Define organizational structure and controls Describe the relationship between strategy & structure Describe the functional structures for business- level strategies Describe three versions of the multi-divisional (M-form) structure for different diversification strategies Describe structures implementing three international strategies Describe the differences between strategic, financial and behavioral controls Organizational Structure & Controls Organizational structure and controls provide | Strategy Implementation What must we do to put the strategy in place, execute it proficiently, and produce good results? Creating FITS between strategy and external environment and creating FITS inside the organization Control, coordination, and motivation issues Components of the Strategy Execution/Implementation Process The Action Agenda for Implementing Strategy The Strategic Management Process Chapter 11: Organizational Structure (OS) and Controls Overview: Define organizational structure and controls Describe the relationship between strategy & structure Describe the functional structures for business- level strategies Describe three versions of the multi-divisional (M-form) structure for different diversification strategies Describe structures implementing three international strategies Describe the differences between strategic, financial and behavioral controls Organizational Structure & Controls Organizational structure and controls provide framework within which strategies are used Different structures and controls are required to effectively implement different strategies Must match structure and controls to strategy and strategy implementation Fit between strategy and structure affects above average returns and performance Better fit = Better performance Organizational Structure & Controls Organizational Structure Specifies the firm’s formal reporting relationships, procedures, controls, authority, and decision-making processes In other words, specifies work to be done and how to do it Effective use of firm’s strategies facilitated when structure is properly aligned Structure should allow for both Structural stability: Capacity firm requires to consistently and predictably manage its daily work routines Structural flexibility: Opportunity to explore competitive advantages firm will need to be successful in the future Structure is a critical component of effective strategy implementation Organizational
