ADMS 4570 Chapter Notes - Chapter 9: Hierarchical Routing, Profit Center, Market Power
27 Sep 2016
School
Department
Course
Professor
Document Summary
Executing strategy is normally the biggest challenge facing managers it requires commitment, perseverance and a solid capacity to lead, motivate, direct and inspire an entire organization to deliver. A firm"s strategy and structure change as it increases in size, diversifies into new product markets and expands its geographic scope. Simple structure: increases its sales revenue and volume of outputs over time may also engage in some vertical integration to secure sources of supply (backward integration) as well as channels of distribution (forward integration) After a time, the firm will implement a functional structure to concentrate efforts on both increasing efficiency and enhancing its operations and products (can group by functions, departments or geographic area) Then, will want to develop products and go into other markets so will need a divisional structure. (organized by product lines or geographic markets) If want to diversify into many product lines might consider divisional structure.
