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BMA799 Strategic Management

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Define organisational structure and controls and discuss the difference between strategic and financial controls
Describe the relationship between strategy and structure
Explain the use of three versions of multi-divisional structure to implement different diversification strategies
Discuss the organisational structures used to implement international strategies
Define strategic networks and discuss how strategic centred firms implement such networks at the business, corporate and international levels
 
Definition
Organisational structure specifies the firm’s formal reporting relationships, procedures, controls and authority and decision making processes
It consists of a firm’s role configuration, procedures, governance and control mechanisms, and authority structure
Organisational structure is a critical component of effective strategy implementation processes
Effective structure influences how managers work and provides the stability a firm needs to successfully implement its strategies
Structural stability provides the capacity to consistently and predictably manage daily tasks
Structural flexibility provides the opportunity to explore competitive possibilities and allocate resources effectively
 
Structures
Simple Structure – one person making all the decisions directly, no real specialisation
Functional Structure – consists of a CEO and a limited corporate staff with functional line managers in dominant organisational areas, such as production, accounting, marketing, R&D, engineering and HR
M-Form – This is composed of operating divisions, or silos, each representing a separate business or profit centre in which the top corporate officer delegates responsibilities for day-to-day operations and busness unit strategy to division managers.
A strategic centered firm
 
It’s the foundation for the strategic network’s structure. It: Is concerned with aspects or organisational structure such as formal reporting relationships Manages the complex, cooperative interactions among network partners
 
A strategic centred firm engages in four primary tasks:
Strategic outsourcing Technology Competencies Race to learn Implementing business-level & corporate-level cooperative strategies
Vertical complementary alliances Horizontal complementary alliances Franchising Strategic networks Distributed strategic networks

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