1. Unit 5: Organisational Structure and Strategy

6. Designing Organisational Structures Customer Geographic Matrix Functional Product

8. Why study job design? Every manager must know the relationship between how organisation being structured, the job within and the linkages to organisational processes

10. Job Characteristics Model

11. Intra-organisational Processes Reengineering Empowerment Behavioural Informality

15. Inter-organisational Processes Modular Organisations Virtual Organisations

16. Inter-organisational Processes Modular Organisations

18. Inter-organisational Processes Virtual Organisations

20. What Would You Do? Where do you start to fix a company that has a $100 million loss, falling ad sales, plummeting stock prices, and an unmanageable organisational structure? LELC has done a poor job in establishing relationships with customers What structure should LELC adopt? How can better decisions be made for the company?

21. Basics of Organisational Strategy Resources The assets, capabilities, processes, information, and knowledge that the organization controls Competitive Advantage Providing greater value for customers than competitors can Sustainable Competitive Advantage A competitive advantage that other companies have tried unsuccessfully to duplicate

22. Requirements for Sustainable Competitive Advantage Sustainable Competitive Advantage Valuable Resources Non- Substitutable Resources Imperfectly Imitable Resources Rare Resources

23. Strategy-Making Process Assess need for strategic change Conduct a Situational Analysis Choose Strategic Alternatives

24. Assessing the Need for Strategic Change Avoid Competitive Inertia a reluctance to change strategies or competitive practices that have been successful in the past Look for Strategic Dissonance a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy Assess need for strategic change

26. Choosing Strategic Alternatives Risk-Avoiding Strategy : protect an existing competitive advantage Risk-Seeking Strategy : extend or create a sustainable competitive advantage Strategic Reference Points : targets used by managers to determine if the firm has developed the core competencies it needs to achieve a sustainable competitive advantage Choose Strategic Alternatives

27. Strategic Reference Points Choose Strategic Alternatives

29. Corporate-Level Strategies BGC Matrix Relative Market Share Market Growth Small Large Low High Stars companies with a large share of a fast-growing market Dogs companies with a small share of a slow-growing market Cash Cows companies with a large share of a slow-growing market Question Marks companies with a small share of a fast-growing market

30. Corporate-Level Strategies Diversification & Risk Risk Low High Single Business Related Diversification Unrelated Diversification Relationship Between Diversification and Risk

32. Corporate-Level Strategies Grand Strategies Growth Strategy focuses on increasing profits, revenues, market share, or number of places to do business Stability Strategy focuses on improving the way in which the company sells the same products or services to the same customers Retrenchment Strategy focuses on turning around very poor company performance by shrinking the size or scope of the business

33. Industry-Level Strategies Five Industry Forces Positioning Strategies Adaptive Strategies

34. Industry-Level Strategies Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Threats of New Entrants Character of Rivalry Porter’s Five Industry Forces

35. Industry-Level Strategies Focus Strategy Positioning Strategies Cost Leadership Differentiation

37. Firm-Level Strategies DIRECT COMPETITION Market commonality Resource similarity STRATEGIC MOVES OF DIRECT COMP. Attack Response ENTREPRENEURIAL INTRAPRENEURIAL ORIENTATION Autonomy Innovativeness Risk taking Proactiveness Competitive Aggressiveness

39. Strategic Moves of Direct Competition Competitor Analysis Interfirm Rivalry: Action & Response Strong Market Commonality Less Likelihood of an Attack Weak Market Commonality Greater Likelihood of an Attack Strong Resource Commonality Less Likelihood of a Response Low Resource Commonality Greater Likelihood of a Response

40. Entrepreneurship and Intrapreneurship Entrepreneurship : the process of entering new or established markets with new goods or services. Intrapreneurship : entrepreneurship within an existing organisation. Entrepreneurial orientation : the set of processes, practices, and decision-making activities that lead to new entry Key Dimensions of Entrepreneurial Orientation Risk Taking Autonomy Innovativeness Proactiveness Competitive Aggressiveness