Management and Strategy Essay Notes
INDUSTRIAL ORGANIZATION, CORPORATE STRATEGY AND STRUCTURE
? Top managers perceptions of the market structure and firms strengths and weaknesses determine their choice of corporate strategy and organisational structure
? Both corporate strategy and organisational structure influence the economic performance of the firm and the market in which it sells
? One of the main goals for strategy implementation is to achieve synergy between functions and business units (Hunger and Wheelen)
Organisational Structure
? Organisational Structure ? arrangement whereby the firm motivates, co-ordinates, appraises, and rewards the inputs and sources that belong to its coalition
? It is a process of choosing arrangements that maximise the value of the firms chosen strategy
Other factors affecting organisational structure
? Market processes surrounding the unit
? Influence of competition
? Uncertainty ? relate to Chandler ? The external environment is uncertain therefore companies are forced to change their structure to comply with the changing environment
STRATEGY MAKING AND STRUCTURE: ANALYSIS AND IMPLICATIONS FOR PERFORMANCE (Danny Miller)
? Organisational structures and strategy making are highly interdependent and must be complementary in many ways to ensure good performance under challenging conditions
? Findings of the study illustrate that relationships between strategy making and structure were usually strongest among successful and innovative firms and seemed to contribute the most to pe ...