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MODERN STRATEGIC ANALYSIS: structures of growing company

Functional structure Production, Marketing, Sales, HR, Innovations, Finance, Purchasing

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Слайд 1MODERN STRATEGIC ANALYSIS: structures of growing company

Dr. Prof. Aleksandr Kozlov
08/11/201

MODERN STRATEGIC ANALYSIS: structures of growing companyDr. Prof. Aleksandr Kozlov08/11/201

Слайд 2Functional structure Production, Marketing, Sales, HR, Innovations, Finance, Purchasing

Functional structure Production, Marketing, Sales, HR, Innovations, Finance, Purchasing

Слайд 3Functional structure
Advantages
Simple, evident
Centralised control
Clear spheres of responsibility
High level of

professionalism of functional specialists
High level of efficiency in functional departments

Functional structureAdvantagesSimple, evident Centralised controlClear spheres of responsibilityHigh level of professionalism of functional specialistsHigh level of efficiency

Слайд 4Functional structure
Disadvantages
Long time decision making process
Lack of systematic vision for

functional managers
Functional myopia
Contradictory interests of functional departments and possible conflicts

between them
Functional structureDisadvantagesLong time decision making processLack of systematic vision for functional managersFunctional myopiaContradictory interests of functional departments

Слайд 5Product oriented structure

Product oriented structure

Слайд 6Product oriented structure
Advantages
Gives chance to make focus on the particular

product, taking into accounts specifics of it’s sales
Allows to investigate

market details for every product
Allows to build a team of professionals in sales of every product
Increases responsibility of managers in specific product sales
Allows to calculate precise profitability of every product

Product oriented structureAdvantagesGives chance to make focus on the particular product, taking into accounts specifics of it’s

Слайд 7Product oriented structure
Disadvantages
Managers of product groups are demonstrating a “product

egoism”
Doubling of management functions
Barriers in coordination between different product groups


Product oriented structureDisadvantagesManagers of product groups are demonstrating a “product egoism”Doubling of management functionsBarriers in coordination between

Слайд 8Geographically oriented structure

Geographically oriented structure

Слайд 9Geographically oriented structure
Advantages
Allows to take into account peculiarities of every

geographical market
Delegation of responsibility to lower level of hierarchy
Barriers

in coordination between different product groups
Regional branches are the good school for managers preparing them to successful carrier
Geographically oriented structureAdvantagesAllows to take into account peculiarities of every geographical market Delegation of responsibility to lower

Слайд 10Geographically oriented structure
Disadvantages
Difficult to keep one nad individed corporate image
Doubling

of management functions
Makes the structure more complicated since geographical departments

have to be built
Geographically oriented structureDisadvantagesDifficult to keep one nad individed corporate imageDoubling of management functionsMakes the structure more complicated

Слайд 11Matrix structure
Project 1
Project 2

Matrix structureProject 1      Project 2

Слайд 12Matrix structure
Advantage
Gives flexibility in decision making for big companies
Problems
Difficult

to run because of two lines of responsibility (linear and

project)
Depends on ability of staff involved into a project to work in teams

Matrix structureAdvantageGives flexibility in decision making for big companies ProblemsDifficult to run because of two lines of

Слайд 13Functional model of an organisation
Metafunction
Middle level functions
Low level functions

Functional model of an organisationMetafunctionMiddle level functionsLow level functions

Слайд 14Matrix «Function-Department»
High level Function
Lower level Functions
High level Department
Low level

Departments

Matrix «Function-Department» High level FunctionLower level FunctionsHigh level DepartmentLow level Departments

Слайд 15Flexible organisational structures

Flexibility is defined as the ability of

the company proactively, reactively or inherently to implement changes in

its components and its relationships with environment

Flexible organisational structures Flexibility is defined as the ability of the company proactively, reactively or inherently to

Слайд 16Flexible organisational structures
Ad Hoc Structures
Ad hoc team is to

be created to handle a temporary project.

Ad hoc teams

are flexible because they enable companies to handle special projects quickly and then dissolve the team after the work is completed.
Flexible organisational structuresAd Hoc Structures Ad hoc team is to be created to handle a temporary project.

Слайд 17Flexible organisational structures
Network
A network organizational structure consists of multiple organizations

that work together to produce goods or provide services. It

is more complicated and complex than any other structure
Managers in network structures spend most of their time coordinating and controlling external relations
I.E. While business giants risk becoming too clumsy to proact, act and react efficiently, the new network organizations contract out any business function from “mother” company
Flexible organisational structuresNetworkA network organizational structure consists of multiple organizations that work together to produce goods or

Слайд 18Flexible organisational structures
Virtual
A special form of boundaryless organization, existing within

a network of alliances, using the Internet
The virtual organization is

not physically existing as such
Flexible organisational structuresVirtualA special form of boundaryless organization, existing within a network of alliances, using the InternetThe

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