What are the principaldifferencesbetween a functionalstructure and a multidivisionalstructure? Why does an organization change from a functional to a multidivisionalstructure? Justify your answers using real life examples, experiences and reasoning.
“Functionalstructure is the bedrock...
Organizational Theory, Design, and Change
Fifth Edition Gareth R. Jones
Chapter 6 Designing Organizational Structure: Specialization and Coordination
Copyright 2007 Prentice Hall
Proper design should lead to organizational efficiency and effectiveness. Involves...
Designing Organizational Structure
1. Distinguish between three kinds of divisional structures (product, geographic, and market) 2. Explain why most organizations initially have a functionalstructure and why, over time, problems arise with this structure that require a change to...
their strategic implication.
Separation of ownership and control creates an agency problem when an agent pursues goals that conflict with principals’ goals. Principals establish and use governance mechanism to control this problem.
4. Explain how three internal governance mechanisms-ownership concentrations...
Managers are better at formulating strategies than at implementing them. This has been known as a knowing doing gap. Such levers as: organizational structure, systems and processes, and people and rewards are tools that help strategists a achieve alignment. Strategic leadership is essential if a firm is...
What is the relationship of organizational structure, control and culture? When would a company decide to change from a functional to a multidivisionalstructure?
Between the structures, the controls and the culture is a relationship that works like a chain that is locked to itself. Organizational...
these three principles, there is Effective Implementation to achieve a successful strategy. Without it, the best-laid strategies are of little use –structure and systems.
Simple, consistent, long-term goals
Profound understanding of the competitive...
separate management structures maintained in the group with the CEO of NOL in Singapore and CEO in the United States reporting to the group CEO. This separation between owners and manager creates an agency relationship. This exist when one or more persons (the principal or principals) hire another person...
Industrial Organization, Corporate Strategy and Structure
Richard E. Caves
Journal of Economic Literature, Vol. 18, No. 1. (Mar., 1980), pp. 64-92.
Journal of Economic Literature is currently published...
critical of Brown, his management style, and organizational strategy and structure. Brown has a good track record as president: His company has grown at an enviable 20 percent a year, and the functional organizational structure works well. Brown knows how to delegate and decentralize control. He allows...
formulation of strategy - internal analysis Determine what the organization can do:
Structure Performance Abilities Incentives
Determines the boundaries of the firm:
Determine whether goals and strategies are feasible If not, what does it take to make them feasible? – organizations...
answer before you begin writing.
1. What do Franklin’s career and philosophy tell you about the environment for the conduct of business in the late eighteenth century? Is the concept of a “spirit of capitalism” a helpful explanatory tool?
2. What were the interests and points of view of speculators...
Multidivisional Organizational Form
The U-form structure is less suited to large organizations which offer a diversified range of goods and services. This is because each function (production, finance, marketing etc.) has to deal with a wider variety of tasks and functions. Co-ordination of resources...
and Related Linked Diversification Pgs 163-168
Value-Neutral Diversification: Incentives and Resources
Relationship Between Diversification and Performance – Figure 6.3
Synergy and Firm Risk Reduction
Resources and Diversification
Value-Reducing Diversification: Managerial...
associated with internal new ventures, acquisitions, and strategic alliances.
50. Appreciate the special issues associated with using a joint venture to structure a strategic alliance.
A0. This chapter deals with the nature of strategic change and the obstacles that may hinder...
I. TARMAC COMPANY
1.1 Tarmac’s structure
Tarmac was originally formed by Edgar Purnell Hooley in 1993 and now being the UK ‘s largest quarrying company and supplier of construction. Tarmac leads on the market of aggregates, ready mixed concrete and asphalt. Its business also include national contracting...
The organizational structure of Proctor and Gamble
Procter & Gamble
The company I have chosen for the assignment of managing change in organization is Procter & Gamble. The company is a Fortune 500 American multinational corporation headquartered in Downtown Cincinnati, Ohio that manufactures...
it implements a strategy competitors are unable to duplicate or find too costly to try to imitate.
Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
Risk is an investor’s uncertainty about the economic gains or losses...
information pertaining to his research. However, his monumental works, such as “Pierre S. Du Pont and the making of the Modern Corporation”, Strategy and Structure, The Visible Hand, and Strategy and Scope have not only set standards for business and economic history but have also provided insight into theories...
–Asset-specificity (correct governance), first mover advantage (correct strategy) 5.Connectivity Perspective “Higher profits result from network structure and corporate ties between businesses”–Alliances, dense network, structural holes
Strategic Management Process •Strategic Analysis–Goals and objectives, external...