Exam 11: Organisational Structure and Controls

Chandler found that firms tended to grow in somewhat predictable patterns in the following order:

The functional structure is most appropriate for larger firms implementing a strategy that includes high levels of diversification.

Selecting the organisational structure and controls that effectively implement the chosen strategy is a challenge for managers because:

High levels of formalisation are generally found in firms following a cost leadership strategy.

Discuss the structural characteristics associated with implementing a cost leadership strategy.

To implement a related constrained strategy, a firm usually needs a cooperative form of multi-divisional strategy.

The competitive form of the multi-divisional structure facilitates internal competition.Discuss the potential benefits.

Define organisational controls.Why are organisational controls important?

Strategic controls are concerned with examining the fit between:

The transnational strategy is best implemented using the ________ structure.

Modifications to a firm's current strategy or decisions on a new strategy call for changes to its organisational structure.

A strategic network is:

The worldwide product divisional structure has centralised decision-making authority in the worldwide division headquarters to coordinate and integrate decisions and actions among disparate units.

A matrix organisation is characterised by:

Regarding the lack of inherent superiority of one organisational structure over others, Peter Drucker noted that:

Rapid adaptation to the environment, greater flexibility and openness to innovation are some of the competitive advantages a firm can gain when using a simple structure.

Organisational structure is a critical component of effective strategy formulation processes.