CAPTER 11: ORGANIZATIONAL DESIGN AND CONTROL CASE: Alibaba.com
ORGANIZATIONAL STRUCTURE ( DESIGN )
The firm’s formal reporting relationships, procedures, controls, and authority and decision making processes. Specifies the work to be done and how to do it in line with the firms strategies • Structural Stability:
Provides the capacity the firm requires to consistently & predictably manage it’s daily work routines.
Group Members:
Abdul Aziz Bin Abdul Samad Maniyarasan Al Munusamy Zahairinizal Bin Zakria Kanesan Al Velusamy Sheerad Bin Sahid
• Structural Flexibility:
Provides the opportunity to explore competitive possibilities & allocate resources to activities that will shape the competitive advantages of the firm that it will need to be successful in the future.
ORGANIZATIONAL CONTROL
Guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable.
Strategic Controls Organizational Controls Financial Controls
RELATIONSHIPS BETWEEN STRATEGY AND STRUCTURE
• Strategy has much more important influence on the structure than the reverse. • When changing strategies the firm should simultaneously change the structure that support the strategies in order to have competitive advantage.
• Concerned with examining the fit between what the firm might do and what it can do.
• Largely financial objective criteria used to measure the firm’s performance against previously established quantitative standards.
EVOLUTIONARY PATTERNS OF STRATEGY AND ORGANIZATIONAL STRUCTURE
• Firms grow in predictable patterns:
• Evaluate the degree to which the firm focuses on the requirements to implement it’s strategies.
• Accounting-based measures include: Return on investment (ROI) & Return on assets (ROA)
– First by volume – Then by geography – Then integration (vertical, horizontal) – And finally through product/business diversification • A