Chapter 11: Video Quiz and Guided Case

Limiting future strategies

A goal of the partnership is to grow. With this growth, strategies will need to change and with strategic change also comes structure change. What will TEOCO need to be aware of and concerned about when implementing new strategies?

Organizational Structure

Atul Jain, as the founder of TEOCO, has a concern about the partnership with TA Associates. He is afraid that the authority and decision-making processes will change and not have the same focus as TEOCO has had in the past. What is Jain concerned may change?

Strategic business unit form

Eric Schmidt mentioned some of the business units of Google that are successful. The units mentioned were Android, Chrome, core search, Maps, and display advertising. With these business units, which functional structure would be recommended?

The lack of leadership and capabilities of decision making

For ten years, Google had a trio running the company. This team was Eric Schmidt as CEO, and the two co-founders, Larry Page and Sergey Brin. The chapter opens with Luxottica, the world's largest eyewear company, being analyzed for a similar structure. The key discussion is around the company's future success vs. potential declines from this structure. Why would analysts be skeptical of this type of organizational structure?

Innovation

Google's structure has been a key to its success. What capability did Eric Schmidt describe that was the key to Google's success?

Strategic flexibility

One reason behind Google's recent change is to increase the speed of decision making. What capability of Google would change?

A fast, effective integration with a high probability of synergy and competitive advantages

TEOCO and TA Associates have assets and resources that are complementary to their respective core businesses. The partnership talks have been hectic, but the acquisition was friendly. Knowing this, what will be the most likely result of this partnership?

Alignment of strategy and structure

TEOCO derives its name from being "The Employee Owned Company". With the employees owning stock, they are motivated to find ways to grow the business, become more efficient, and boost profits in any way to increase the value of their shares. What is this a form of?

Corporate-level cooperative strategy

TEOCO is partnering with TA because of its complementary competencies. TA has extensive knowledge in the industry and a network of relationships that TEOCO can use to help them grow. TEOCO has products and services that TA sees as having enormous potential. What type of strategy is being utilized?

Organizational inertia

The partnership will inevitably bring about change in the company's structure and culture. With the strong culture and values of TEOCO, what will be a barrier for the management team to overcome?

The employee-focused culture

The primary goal of the partnership between TEOCO and TA is to grow as a business. TEOCO has stated that its success is a byproduct of one aspect of the company. What is that aspect that TEOCO will want to be the focus during this partnership?

Agency problem

The relationship between the employees of TEOCO and the managers is more complicated than typical companies. Because TEOCO is employee owned, they are not only stakeholders as employees, they are also shareholders. This means that TEOCO will often have complicated decisions in order to act in the company's best interests. What type of conflict may arise during implementation of the partnership of TEOCO and TA?

Organizational inertia

What challenge may Google need to overcome when making the change to its corporate structure?

organizational structure

What facet of the company has Google recently changed by moving Eric. Schmidt to chairman of the Board of Directors?

Human Resources

What is the most important aspect of TEOCO's structure in the eyes of Atul Jain, the company's founder?

Simultaneously changing strategy and structure

Which of these would be a wise decision for TEOCO when implementing the changes that are required after the partnership is completed in order to meet the full potential of the deal?