1. Organizational Structure
Organizational structure specifies the firm’s formal reporting relationships, procedures, controls, and authority and decision-making processes
It is critical to match organizational structure to the firm’s strategy

2. Organizational Controls:
Financial Controls
Strategic Controls
Objective criteria
Accounting-based measures include
return on investment
return on assets
Market-based measures include
economic value added
Financial Controls

3. SBU Form of Multidivisional Structure:
Related-Linked Strategy
Headquarters Office
President
Corporate
R&D Lab
Strategic
Planning
Corporate
HRM
Corporate
Marketing
Corporate
Finance
SBU
SBU
SBU
Division
Division
Division

4. Competitive Form of Multidivisional Structure:
Unrelated Diversification Strategy
Headquarters Office
President
Legal
Affairs
Finance
Auditing
Division
Division
Division
Division
Division
Division

5. Worldwide Geographic Area Structure:
Multidomestic Strategy
Asia
United
States
product characteristics tailored to local preferences
isolation from global competition
establish protected market positions
compete in industry segments most affected by differences among local countries
Multinational
Headquarters
Latin
America
Europe
Australia
Middle
East/
Africa

6. Worldwide Product Divisional Structure:
Global Strategy
Worldwide
Products
Division
Worldwide
Products
Division
standardized products across countries
economies of scope and scale
outsource some primary or support activities to the world’s best providers
decision-making authority centralized in worldwide division headquarters
Global
Corporate
Headquarters
Worldwide
Products
Division
Worldwide
Products
Division
Worldwide
Products
Division
Worldwide
Products
Division