Rothaermal Exercise 3
BUSI 690 – Policy and Strategy in Global Competition
February 1, 2015
Discussion Question 11.1: Why is it important for an organization to have alignment between its strategy and organizational structure?
The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2)…show more content…
At this level, each of the SBUs is viewed as its own independent entity, pursuing its own profit-creating goals (Rothaermel, 2013). While organizations with a corporate-level strategy with a single or dominant business would be best served by a functional structure, organizations seeking related or unrelated diversification would be wise to utilize a multidivisional structure (Rothaermel, 2013).
Lastly, the matrix structure is a combination of the functional and multidivisional structures (Rothaermel, 2013). It is most appropriate when an organization needs a structure which allows for both centralized and decentralized decision-making, and can be organized by geographic areas and product divisions (Rothaermel, 2013). While a global strategy does not automatically lend to a matrix structure, a transnational strategy which has the requirements above is better served through a matrix structure (Rothaermel, 2013).
Discussion Question 11.3(a): What commonalities across the products would likely be enhanced by flexible cross-functional teams?
Gore has product lines which include consumer products like guitar strings and vacuum filters, cables and cable assemblies, electronic and electrochemical materials, fabrics, fibers, filtration products, medical products, pharmaceutical processing, sealants, and venting products (Gore, 2015). Its product lines are