Exam 2 Executing Strategy Through Organizational Design

Strategic controls are concerned with examining the fit between?

Are concerned with examining the fit between:

• What the firm might do (opportunities in its

external environment).

• What the firm can do (competitive advantages).

What are the benefits of multi divisional structure?

Three Major Benefits

1. Corporate officers are able to more accurately monitor the performance of

each business, which simplifies the problem of control.

2. Facilitates comparisons between divisions, which improves the resource

allocation process.

3. Stimulates managers of poorly performing divisions to look for ways of

improving performance.

What are the three benefits from internal competition?

Three benefits from the internal competition

• Flexibility—corporate headquarters can have divisions working on different

technologies to identify those with greatest future potential.

• Challenges the status quo and inertia.

• Motivates effort.

What is a strategic network?

Strategic Network

• A group of firms formed to create value by participating in multiple

cooperative arrangements such as alliances and joint ventures.