Corporate Strategy Organization Design
Table of Contents Industry Analysis 3 Business Strategies Analysis 5 Business Strategy Evaluation & Recommendations 6 Specialization, Learning by doing 7 mutual adjustment 7 direct supervision
7 standardization of work processes 7 standardization of work outputs 7 standardization of worker skills 7 Coordination mechanisms 7 Coordination by plan
8 Coordination by feedback 8 Interdependence 8 Pooled Interdependece 8 Sequential Interdependence 8 Reciprocal Interdependence 8 Organization Design 8 Types of Organization Structure 9 Making Organization Design Decisions 10 Take-away points org design structure 10 Organization design purposes: 11 Organization complexity: 11 Mechanistic Organization vs. Organic Organization 11 Take away points: 12 Vertical integration and the scope of firm 13 Business-Level Strategy (competitve strategy) 13 low cost leadership 13 differentiation 13 focus low cost/ focus differentiation 13 geographical scope 14 product scope 14 vertical scope 14 Horizontal integration: 14 Degree of vertical integration: 14 Types of integration: 14 Take away points 15 Advatages of vertical horizontal integration 15 Advantages & Disadvantages of a Vertical & Horizontal Organization 15 Vertical Organization Identification 15 Vertical Advantages 16 Vertical Disadvantages 16 Horizontal Organization Identification 16 Horizontal Advantages 16 Horizontal Disadvantages 16 Component vs. Architectural Knowledge 16 Benefits of allocating design tasks within or beyond the firm’s boundaries 17 Different Types of Vertical Relationship 17 Permeable vertical architectures 18 Division of labor and division of knowledge 18 How to organize to maintain competences? 19 • vertical scope (vertical integration) 19 • geographical scope 19 • product scope (diversification) 19 Degree of diversification: 19 Competitive advantage from diversification 19 Economic of scope: 19