04/09/2023Indian Business Academy, Greater Noida

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ORGANISATIONAL STRATEGIES - STRUCTURE

TEAM 6

Siva Naman

Shweta

Sonam

Surabhi

VakulTueny

Sthitija

Sudip

Vikas

Vivek

04/09/2023Indian Business Academy, Greater Noida

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WHAT IS STRATEGY The specific patterns of decision and action that managers take to sue core

competency to achieve a competitive advantage

The long term action plan

The game plan

Company or organization direction

What we’re doing

The plan to achieve competitive advantage

04/09/2023Indian Business Academy, Greater Noida

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“HOW’S” OF STRATEGY How to please customers

How to respond to changing market Conditions

How to outcompete rivals

How to grow the business

How to manage each functional piece of the business and develop needed organizational capabilities

How to achieve strategic and financial objectives How to balance short term and long term

04/09/2023Indian Business Academy, Greater Noida

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TYPES OF STRATEGIES

Functional level Business level Corporate level Global expansion

04/09/2023Indian Business Academy, Greater Noida

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Functional Level Strategy

Plan of action to strengthen an organization’s functional & resources, as well as its coordination abilities in order to create core competences.

Low cost and differentiation advantages VALUE CREATING FUNCTION

SOURCE OF LOW COST ADVANTAGE

SOURCE OF DIFFERENTIATION ADVANTAGE

MANUFACTURING Develop skills in flexible manufacturing technology

Increase in product quality & reliability

HRM Reduction turnover and absenteeism

Hiring of highly skills personal

Material Management Use JIT Long term relation with suppliers & customers

R& D Improved of efficiency of manufacturing Technology

•Creation of new product•Improvement of existing

04/09/2023Indian Business Academy, Greater Noida

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FUNCTIONAL LEVEL STRATEGY AND STRUCTURE

More emphasis on manufacturing

Manufacturing Sales R&D

Tall hierarchy, centralized ,Mechanistic structure

04/09/2023Indian Business Academy, Greater Noida

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FUNCTIONAL LEVEL STRATEGY AND STRUCTURE

More emphasis on sales

manufacturing sales R&D

Flat decentralized , mutual adjustment

04/09/2023Indian Business Academy, Greater Noida

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FUNCTIONAL LEVEL STRATEGY AND STRUCTURE

More emphasis on R&D

Manufacturing

Sales R&D

Flat, decentralized, coordination between human and technical resources

04/09/2023Indian Business Academy, Greater Noida

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BUSINESS LEVEL STRATEGY

Matrix ,Product team

Product market

geographic,

functional

Differentiation

Complex

Decentralized

High differentiation

Low cost

SIMPLE

Centralized

Low differentiation

• Plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain.

04/09/2023Indian Business Academy, Greater Noida

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CORPORATE LEVEL STRATEGY

CEO

CorporateHQ

A division B division C division

04/09/2023Indian Business Academy, Greater Noida

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GLOBAL STRATEGY

International strategy adopts a different route to global expansion

Plan involves choosing the best strategy to expand into overseas markets to obtain scarce resources & develop core competences

Global strategy can play a crucial role in strengthening a company’s control over its environment

04/09/2023Indian Business Academy, Greater Noida

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GLOBAL STRATEGY - STRUCTURE

Global Geographic Strategy Global Matrix Strategy Global Product Group Strategy

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GLOBAL GEOGRAPHIC STRUCTURE• Each region of a country or area of the world is served by a self-contained division

• Managers locate different divisions in each of the world regions where the organization operates

•Generally, occurs when managers are pursuing a multi-domestic strategy

04/09/2023Indian Business Academy, Greater Noida

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GLOBAL MATRIX STRUCTURE An organizational structure that simultaneously groups people and resources

by function and product - The structure is very flexible and can respond rapidly to the need for

change - Each employee has two bosses (functional manager and product

manager) and possibly cannot satisfy both

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GLOBAL PRODUCT GROUP STRUCTURE

• Each product division, not the country or regional managers, takes responsibility for deciding where to manufacture its products and how to market them in foreign countries

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PRODUCT TEAM STRUCTURE Members are permanently assigned to a cross-functional team and report

only to the product team manager or to one of his subordinates

Cross-functional team – group of managers brought together from different departments to perform organizational tasks

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FACTORS AFFECTING ORGANIZATIONAL STRUCTURE

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Human Resources Managers must take into account all four factors (environment,

strategy, technology and human resources) when designing the structure of the organization.

THE ORGANIZATIONAL ENVIRONMENT

04/09/2023Indian Business Academy, Greater Noida

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ENVIRONMENT

The quicker the environmental changes, the more problems face managers

Structure must be more flexible when the environmental change is rapid

Different strategies require the use of different structures

A differentiation strategy needs a flexible structure, low cost may need a more formal structure

Increased vertical integration or diversification also requires a more flexible structure

04/09/2023Indian Business Academy, Greater Noida

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TECHNOLOGY

Technology The combination of skills, knowledge, tools, equipment,

computers and machines used in the organization

More complex technology makes it harder for managers to regulate the organization

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THANK YOU