1. Matching Structure and Control to Strategy

2. Structure and Control at the Functional Level
Manufacturing (standardization)
Strategic activities for improving efficiency, quality (TQM), and customer responsiveness.
Traditionally hierarchical structure shifts toward flatter structure
Research and development (decentralization)
To develop distinctive competencies in innovation and technology to bring products to market.
Project teams
Sales (output controls)
To attain specific sales goals and increase responsiveness to customers.
Human Resources (budget control or output control)

3. Generic Strategy, Structure, and Control
Cost Leadership
Differentiation
Focus
Appropriate Structure
Functional
Product team or matrix
Integrating Mechanisms
Center on manufacturing
Center on R&D or marketing
Center on product or customer
Output Controls
Great use (e.g., cost control)
Some use (e.g., quality goals)
Some use (e.g., cost and quality)
Behavior Controls
Some use (e.g., budgets, standardization)
Great use (e.g., rules, budgets)
Some use (e.g., budgets)
Organizational Culture
Little use (e.g., quality control circles)
Great use (e.g., norms and values)

4. Designing a Global Structure
Multidomestic strategy
Local customer responsiveness focus
International strategy
Centralized at-home R&D and marketing
Global strategy
Value creation functions dispersed globally to optimal locations
Transnational strategy
Local responsiveness and global integration

5. Choices of Structure and Control Systems
How to distribute and allocate responsibility between domestic and foreign managers?
How to select a horizontal differentiation level that makes the best use of resources and best serves customers?
How to choose the right integration mechanism and organizational culture?

6. Global Strategy/Structure Relationships
Multidomestic
International
Global
Transnational
Low
Need for Coordination
High
Bureaucratic Costs
Centralization of Authority
Decentralized to national unit
Core competencies centralized, others decentralized to national units
Centralized
Simultaneously centralized and decentralized
Horizontal Differentiation
Global-area structure
International-division structure
Global product-group structure
Global-matrix structure, matrix in the mind
Need for Complex Integrating Mechanisms
Medium
Very High
Organizational Culture
Not important
Quite important
Important
Very important

7. Global Area Structure

8. International-Division Structure

9. Global Product-Group Structure

10. Global-Matrix Structure
 Individual operating companies

11. Corporate Strategy and Structure and Control
Types of Control
Corporate Strategy
Appropriate Structure
Need for Integration
Financial Control
Behavior Control
Organizational Culture
Unrelated diversification
Multidivisional
Low (no exchanges between divisions)
Great use (e.g., ROI)
Some use (e.g., budgets)
Little use
Vertical integration
Medium (scheduling resource transfers)
Great use (e.g., ROI, transfer pricing)
Great use (e.g., standard- ization, budgets)
Some use (e.g., shared norms and values)
Related diversification
High (achieving synergies between divisions by integrating roles)
Great use (e.g., rules, budgets)
Great use (e.g., shared norms, values, common language)

12. Special Issues in Strategy-Structure Choice
Mergers, acquisitions, and structure
Recognizing cultural and structure differences.
Integration after merger and acquisition
Internal new ventures and structure
Maintaining the entrepreneurial spirit and aspects.
Network structure and the virtual organization
Creating a set of strategic alliances with suppliers, manufacturers, and distributors.
For example, Nike, Topsy Tail