Different organizations adopt various structures and strategies depending on the aims and goals that they seek to achieve in the end. A company may adopt either a mechanistic or an organic approach while executing its business or any other role that it plays in the society. …
A company may adopt either a mechanistic or an organic approach while executing its business or any other role that it plays in the society. A mechanistic approach is characterized by high levels of bureaucracy and complex strategies of executing duties, which are carried out in a more formal way. On the other hand, an organic organization has lower degree of bureaucracy, is relatively centralized and show limited level of formality while executing its strategies (Herman, 1991, pp306). b) Alfred D. Chandler’s reading is a business classic. Explain why structure follows strategy. Does firm structure continually evolve? If yes, how does this take place? Give an example to illustrate. (7 marks) Any organization that ventures in any business must come up with strategies to achieve the best fit in the ever-competitive environment. In this case, the company has to decide on which strategy to adopt among other issues. It is indispensable to appreciate the fact that a company has to strategize on which structure to adopt. In this case, strategy comes before structure. Most organizations evolve in order to acclimatize themselves to changes in the business environment. Furthermore, growing competition often forces a company to re-strategize and come up with better ideas to help it to operate profitably. This is the basis of evolution. In fact, a company may have to diversify its operations and provide new product that it were not producing initially (Herman, 1991, pp309). Furthermore, a company may come up with new departments to help it in tackling the numerous issues related to success. This is the basis of structural evolution in an organization. For example, Google Inc. has experienced an evolving organizational structure. Initially, it did not have representatives in other regions of its operations. However, it has had to introduce branches in such places in order to take care of its interests. Branches like Google South America, Google SE Asia, and Google East Africa among others exemplify this. c) Bartlett and Ghoshal (1995) argue the benefits of transnational organizations. What is a transnational organization? Provide an example of a transnational organization, justifying your selection. (5 marks) A transnational organization as used by Bartlett and Ghoshal (1995) is a phrase used to illustrate an organization that carries out its activities in a global perspective and does not rely in any way with the differences that may exist in countries that it operates. Such an organization in most instances seeks to achieve the balance of providing globally efficient services, responsive to all its customers irrespective of their nationalities, and carries out worldwide development. Microsoft Inc. exemplifies this. The corporation is American-based, but it is obviously clear that it seeks to provide goods and services serving the global market (Segal-Horn & Faulkner 1999, pp 116). d) What do critical views and current findings tell us about the link between strategy and structure? (3 marks) The current findings and views postulate a clear perspective that strategy and structure are intertwined facets in which one cannot operate in the absence of then other. It is essential to note that, strategies formulated by any organization are drawn from the status of the existing business environment. This will then be used to come up with the best structure that counters the weakness and takes advantage of the strengths at its disposal. The development of such a competitive advantage positions the company at a situation where it can capitalize its strategic options, which are often determined by the environment. a) Briefly explain the planning perspective and the incrementalism ...
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