10 e3 strategy & structure lecture notes

Strategy & StructureEnterprise Strategy/AW/10

Arj Wignaraja

Entrepreneurial Structure

Entrepreneur

Subordinates

Functional Structure

Board of Directors

Accounting & Finance Marketing Research &

DevelopmentManagement Information

Systems

Production Personnel

Product A Product B Product C

Divisional Structure

Head Office

Division 2 Division 3Division 1

Theory in Practice (TIP): Wal-Mart Hybrid Structure

CEO & Board

ASDA Stores Sam’s Club US Retail International Retail

Global E-

commerce

CAO CFO Corporate Affairs

Legal & Secretary

Merchandise & Replenishment

Global Customer Insights

Human Resources Sourcing

Theory in Practice (TIP): Starbucks Hybrid Structure

CEO & Board

Americas China & Asia Pacific EMEA Digital

CIO CFO & Admin Marketing Legal &

Secretary

Supply Chain Operations

Competitive Intelligence

Partner Resources

(HR)Public Affairs

Global Developmen

t

Channel Developmen

tStrategyGlobal

Coffee

Matrix Structure

Central Policy, e.g, Board of Directors

Product A

US

Europe

Product B Product C

Asia

= Key points of interaction

Theory in Practice (TIP): P&G Hybrid & Matrix Structure

CEO & Board

CFO

CIO & Global Svcs

Product Supply

CTO

Brand Building

Consumer & Mkt Knowledge

Customer Dev.

Design

External Relations

HRLegal &

SecretarialDiversity &

Services

Oper

atio

ns

Asia & Specialty Channel

NA & Global Hyper, Super, Mass Channel

Discounters & Pharmacy

EMEA

Latin America & Global Club

Greater China

Global Business Units

Wal-Mart

Grooming & Shave

Fabric Care

Baby Care

HomeCare

Duracell Braun Home

Care …

New Business Creation

Factors linking strategy with structure

Structure

People & skills

Strategic objectives

Environment

Available technolog

y

Future strategy

Diversity & Scope

3 Strategic Styles – How Corporate Centers Influence the Development of Business Strategy

Strategic Planning Financial ControlStrategic Control