Copyright 1998 by Houghton Mifflin Company. All rights reserved Chapter 13: Matching Structure and Control to Strategy Text by Charles W. L. Hill Gareth R. Jones Multimedia Slides by Milton M. Pressley Univ. of New Orleans
Copyright 1998 by Houghton Mifflin Company. All rights reserved. 13-2Preview 4Structure and Control at the Functional Level 4Structure and Control at the Business Level 4Designing a Global Structure 4Structure and Control at the Corporate Level 4Special Issues in Strategy- Structure Choice
Copyright 1998 by Houghton Mifflin Company. All rights reserved Structure and Control at the Functional Level ManufacturingManufacturing Research and DevelopmentResearch and Development SalesSales
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.1: Generic Strategy, Structure, and Control Structure and Control at the Business Level
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.1: Generic Strategy, Structure, and Control Structure and Control at the Business Level
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.1: Generic Strategy, Structure, and Control Structure and Control at the Business Level
Copyright 1998 by Houghton Mifflin Company. All rights reserved Designing a Global Structure 4Multidomestic Strategy 4International Strategy 4Global Strategy 4Transnational Strategy Recall from Chapter 8:
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.2: Global Strategy-Structure Relationships Designing a Global Structure (Continued) Multi- domesticInternationalGlobal Trans- national Low High Centrali- zation of Authority Decentral- ized to National Unit CoreCom- petencies Centralized. Others De- centralized to National Units Central- ized at Optimal Global Location Simultan- eously Central- ized and Decentral- ized Horizontal Differentia- tion Global Area Structure International Division Structure Global Pro-duct Group Structure Global Matrix Structure Need for Complex Integrating Mechanisms LowMediumHighVery High Organiza- tional Culture Not Important Quite Important Very Important Need for Coordination Bureaucratic Costs
Copyright 1998 by Houghton Mifflin Company. All rights reserved Figure 13.1: Global Area Structure Corporate Headquarters North American Region South American Region European Region Pacific Region
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.2: Global Strategy-Structure Relationships CoreCom- petencies Centralized. Others De- centralized to National Units Central- ized at Optimal Global Location Simultan- eously Central- ized and Decentral- ized GlobalInternational Division Structure Global Pro-duct Group Structure Global Matrix Structure MediumHighVery High Quite Important Very Important Designing a Global Structure (Continued) Multi- domesticInternationalGlobal Trans- national Low High Centrali- zation of Authority Decentral- ized to National Unit Horizontal Differentia- tion Need for Complex Integrating Mechanisms Organiza- tional Culture Need for Coordination Bureaucratic Costs Area Structure Low Not Important
Copyright 1998 by Houghton Mifflin Company. All rights reserved Figure 13.2: International Division Structure Corporate Headquarters Product Group 1 United States United Kingdom JapanFrance Product Group 2 Product Group 3
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.2: Global Strategy-Structure Relationships Need for Coordination Bureaucratic Costs Designing a Global Structure (Continued)
Copyright 1998 by Houghton Mifflin Company. All rights reserved Figure 13.3: Global Product Group Structure Corporate Headquarters Division 1Division 2 Division 3 International Division United States United Kingdom JapanFrance
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.2: Global Strategy-Structure Relationships Need for Coordination Bureaucratic Costs Designing a Global Structure (Continued)
Copyright 1998 by Houghton Mifflin Company. All rights reserved Figure 13.4: Global Matrix Structure N. American SBU S. American SBU Pacific SBU Product Group 1 Product Group 2 Product Group 3 Individual Operating Companies
Copyright 1998 by Houghton Mifflin Company. All rights reserved. Multi- domesticInternationalGlobal Trans- national Low High Centrali- zation of Authority Decentral- ized to National Unit CoreCom- petencies Centralized. Others De- centralized to National Units Central- ized at Optimal Global Location Simultan- eously Central- ized and Decentral- ized Horizontal Differentia- tion Global Area Structure International Division Structure Global Product Group Structure Global Matrix Structure Need for Complex Integrating Mechanisms LowMediumHighVery High Organiza- tional Culture Not Important Quite Important Very Important Table 13.2: Global Strategy-Structure Relationships Designing a Global Structure (Continued) Need for Coordination Bureaucratic Costs
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.3: Corporate Strategy and Structure and Control Structure and Control at the Corporate Level
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.3: Corporate Strategy and Structure and Control Structure and Control at the Corporate Level
Copyright 1998 by Houghton Mifflin Company. All rights reserved Table 13.3: Corporate Strategy and Structure and Control Structure and Control at the Corporate Level
Copyright 1998 by Houghton Mifflin Company. All rights reserved Special Issues in Strategy-Structure Choice Mergers, Acquisitions, and StructureMergers, Acquisitions, and Structure Internal New Ventures and StructureInternal New Ventures and Structure Network Structure and the Virtual OrganizationNetwork Structure and the Virtual Organization
Copyright 1998 by Houghton Mifflin Company. All rights reserved Chapter Summary STRUCTURE AND CONTROL AT THE FUNCTIONAL LEVEL STRUCTURE AND CONTROL AT THE BUSINESS LEVEL DESIGNING A GLOBAL STRUCTURE STRUCTURE AND CONTROL AT THE CORPORATE LEVEL SPECIAL ISSUES IN STRATEGY- STRUCTURE CHOICE