Strategy & Structure

1
Strategy Structure

• Aligning administrative, responsibility, and
  account structures to accomplish organizational
  purpose in big organizations

2
POSDCORB

• Strategic PLANNING
• ORGANIZING
• STAFFING
• Organizational DEVELOPMENT
• CONTROLLING
• OPERATING
• REPORTING
• BUDGETING

3
The Rise of Bureaucracy

• Perfected by Prussians during 19th Century
• detailed centralized materials requirements and
  logistical planning (input budgets),
• control by rules, standard operating procedures,
  and the merit principle,
• functional administrative design, distinction
  between staff and line
• decomposition of tasks to their simplest
  components,
• Sequential processing.

4
Bureaucracy

• made large, complex organizations possible also
  made them inevitable
• POSDCORB functions were all treated as separate
  concerns, performed by staff specialists and
  coordinated by top mgmt.
• substantial staff resources needed to gather and
  process data for top mgmt. to coordinate
  activities and allocate resources

5
The MarketingInformation System
Marketing managers Analysis Planning Implemen-
tation Control
Marketing environment Test markets Marketing cha
nnels Competitors Publics Macro- environment fo
rces
Marketing Information System
Developing information
Assessing information needs
Internal records
Marketing intelligence
Marketing research
Marketing decision support analysis
Distributing information
Marketing decisions and communication
6
Managing at Arms Length

• Multi-product, or M-form, organizational
  structure
• each major operating division serves a distinct
  product market
• Decentralized control
• by the numbers, using the DuPont system of
  financial controls, return-on-assets target
• Coordination
• short run via transfer prices
• Long run via modern capital budgeting system

7
Flexible Production

• Nobody but the front-line worker adds value,
• Front-line workers can perform most functions
  better than specialists (lean manufacturing),
• Every step of the fabrication process should be
  done perfectly (TQM)
• This reduces the need for buffer stocks (JIT) and
  produces a higher quality end-product.

8
Modern IT reduced economies of scale and scope

• Multidisciplinary teams, members work together
  from start of job to completion
• push exercise of judgment down to teams that do
  an organization's work
• more equal distribution of knowledge, authority,
  and responsibility
• average firm size falling for the last twenty
  years

9
The Balanced Scorecard

• Four perspectives .
• Financial
• Customer
• Internal Business Processes
• Learning and Growth Perspective

10
Think Again.
11
(No Transcript)