INDUSTRIAL ORGANIZATION, CORPORATE STRATEGY AND STRUCTURE
Top managers perceptions of the market structure and firms strengths and weaknesses determine their choice of corporate strategy and organisational structure
Both corporate strategy and organisational structure influence the economic performance of the firm and the market in which it sells
One of the main goals for strategy implementation is to achieve synergy between functions and business units (Hunger and Wheelen)
Organisational Structure
Organisational Structure arrangement whereby the firm motivates, co-ordinates, appraises, and rewards the inputs and sources that belong to its coalition
It is a process of choosing arrangements that maximise the value of the firms chosen strategy
Other factors affecting organisational structure
Market processes surrounding the unit
Influence of competition
Uncertainty relate to Chandler The external environment is uncertain therefore companies are forced to change their structure to comply with the changing environment
STRATEGY MAKING AND STRUCTURE: ANALYSIS AND IMPLICATIONS FOR PERFORMANCE (Danny Miller)
Organisational structures and strategy making are highly interdependent and must be complementary in many ways to ensure good performance under challenging conditions
Findings of the study illustrate that relationships between strategy making and structure were usually strongest among successful and innovative firms and seemed to contribute the most to performance in sizeable and innovative firms
The structure of an organisation importantly influences the flow of information and the context and nature of human interactions
Channels collaboration, specifies modes of co-ordination, allocates power and responsibility, and prescribes levels of formality and complexity elements which would influence the making of strategy