Operational Structures Flashcards
Different types
Functional
Product based
Regional
Matrix
Emergent strategy
Develops over time
Planned strategy
One managers intend to implement
Strategic drift
When strategy no longer matches the environment
Divorce between ownership and control
Normally big company
Managers pursue their own interests / don’t know shareholders interest as they are not in direct contact with business everyday
Strategic planning
The value of
Scientific decision making based on data
Gives business clear direction, motivate employees
However, environment changes very fast so may need to be reviewed and evolved over time
Contingency planning
Plan B for possible but unlikely events such as a factory fire
Reasons for strategic drift
PESTLEC
And customers
Evaluating strategic performance
Were the objectives achieved
Strategic planning
Defining strategy, allocating resources etc
Value of contingency planning
Help businesses react to unexpected events quickly
Value of leadership in decision making
Clear objectives, good planning clear communication
