Chapter 11 Strategic Management
multidivisional structure
type of strategy global standardization uses
functional structure
type of strategy international uses
multidivisional structure
type of strategy multi domestic uses
global matrix structure
type of strategy transnational uses
what is important is defined by ______; which attitudes and behavior are deemed appropriate are defined by _____
values; norms
examples of artifacts of an organization's culture
what events are celebrated design and layout of physical space symbols
founder imprinting
when a company's culture is defined and shaped by the people who start it
exploitation
which of the following terms describes the usage of current knowledge to enhance firm performance in the short term?
output controls
which of the following types of control defines expected results in order to guide employee behavior
true of cross-functional teams
work on a specific product or project meant to facilitate collaboration between departments
span of control
# of employees who directly report to a manager
organizational culture
collectively shared values and norms of an organizations members - also key building block of organizational design
co-opetition
competition and cooperation at the same time
transnational global strategy's structure
global matrix -balance of centralized and decentralized -additional layer of hierarchy to coordinate with
when supporting a related-diversification strategy with the m-form organizational structure, managers typically
concentrate decision making at the top of the organization
centralization
organizational element that refers to the degree to which decision making is concentrated at the top of the organization
because executives make decisions about structure and strategy,
a change in leadership often results in a change in culture
ambidextarity
a firm's ability to address trade-offs not only at one point but also over time. it encourages managers to balance exploitation with exploration
determines the allocations of resources and the organization and operations of works
a firm's organizational struct
groupthink
a situation in which individuals follow a leader without challenging or critically evaluating the leader's ideas
disadvantages to M-form
adds layer of corporate hierarchy SBU's frequently compete with each other
reasons why it is difficult to imitate the cultures of successful firms
casual ambiguity social complexity
the four essential aspects of an organizational structure
centralization hierarchy specialization formalization
characteristics of cooperative m-form
centralized decision making high level of integration @ corporate HQ co-opetition among SBU
organic organizations
characterized by a low degree of specialization & formalization, flat organizational structure, & decentralized decision making
mechanistic organizations
characterized by high degree of specialization & formalization & by a tall hierarchy that relies on centralized decision making
what do cross functional teams fix
cross-departmental collaboration in a functional structure
characteristics of competitive m-form
decentralized decision making low level of integration @ corp. HQ competition among SBU for resources
a firm would use input controls if it wanted to
define and direct employee behavior through a set of explicit, codified rules and standard operating procedures
which of the following is true of an m-form?
each division operates independently
how does an organization's culture influence employee behavior?
employees are motivated by positive culture because it appeals to their higher ideals
which of the following are true of the network structure
enable firms to access communities of practice supported by policies and procedures that are uniform company-wide
motivation that is driven by external factors, such as rewards or punishments, is called ____ motivation
extrinsic
functional
firms that follow a single-business or dominant-business strategy at the corporate level generally employ a _____ structure
transnational
firms that pursue a ____ strategy tend to use a global matrix structure
international global strategy's structure
functional
when a firm covers a limited geographic area and is narrowly focused in terms of offerings, a ____ structure is recommended
functional
frequently associated with organic organizations
greater employee satisfaction swifter decision making greater employee creativity
core rigidity
happens when a firm relies too long on the competency w/o honing, refining, and upgrading as the firms and environment change
an example of how values and norms provide control
helping employees address unpredictable problems
strategy implementation is essentially
how a firm performs its work
firms resistance to change the status quo, which can set the stage for the firms subsequent failure
inertia
mcdonald's reliance on detailed instructions to ensure consistent quality and service worldwide is an example of standard operating procedures as ____ control
input
a disadvantage of a matrix organizational structure is that it
is hard to implement
organizational structure
key to determining how the work efforts of individuals and teams are orchestrated & how resources are distributed
disadvantage of functional structure
lacks effective communications channels across departments, and cannot effectively address a higher level of diversification which often stems from further growth
Characteristics of simple organizational structures
low formalization decentralized decision making flat hierarchies
why does strategy implementation frequently fall?
managers cannot make the needed adjustments because of how implementation affects the firm's resource allocation and power distribution
mcdonalds is an example of
mechanistic organization because it has over 36,000 stores
what do managers use the key levers of structure, culture, and control for?
motivate employees coordinate work
multidomestic global strategy's structure
multidivisional -geographic areas -decentralized decision making
global standardization strategy's structure
multidivisional -product divisions -centralized decision making
when a firm's organizational structure is tall, the span of control is
narrow
key elements of organizational culture
norms values artifacts
ambidextrous organization
organization that is able to balance & harness different activities in trade off situations
hierarchy
organizational element that determined the formal position based reporting lines and thus stipulates who reports to whom
holacracy
organizational structure in which decision making authority is distributed throughout loose collections or circles of self organizing teams
simple structure
organizational structure in which the founders tend to make all the important strategic decisions as well as run the day to day operations
multidivisional structure (M-Form)
organizational structure that consists of several distinct strategic business units each with its own profit and loss responsibility
functional structure
organizational structure that groups employees into distinct functional areas based on domain expertise
organizational design
process of creating, implementing, monitoring, & modifying the structure, processes and procedures of an organization
employees learn about their firm's culture through
socialization
the functional areas present in a functional structure frequently correspond to
stages in the value chain
what are two internal governance mechanisms put in place to align principal and agent incentives?
strategic control reward systems
key components of organizational design
structure, control, culture
exploration
terms describing searching for new knowledge that may enhance a firm's future performance
specialization
the element of organizational structure that describes the degree to which a task is divided into separate jobs
a matrix structure is intended to combine the benefits of which two structure types?
the functional structure the m-form
diversification
the inability to effectively deal with higher levels of ____, a common result of growth, is a weakness of the functional structure
boundaryless or lattice
the organizational structure at Gore, in which everyone is encouraged to speak to anyone they wish to within the organization, is called ____ organization form
formalization
the organizational structure element that deals with the degree to which employee behavior is steered by explicit & codified rules & procedures
what is the goal of an internal capital market?
to be more efficient at allocating capital through its budgeting process than what could be achieved in external capital markets
a goal of a differentiation strategy
to control costs while offering products or services at a higher perceived value, thereby creating a competitive advantage