Chapter 5: Bussiness organization, structure and strategy

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Chapter 5: Bussiness organization, structure and strategy by Mind Map: Chapter 5: Bussiness organization, structure and strategy

1. Six key elements of Organization structure

1.1. Formalization

1.2. Departmentalization

1.2.1. Functional Departmentalization

1.2.2. Product Departmentalization

1.2.3. Product Departmentalization

1.2.4. Customer Departmentalization

1.2.5. Geographic Departmentalization

1.2.6. Process Departmentalization

1.2.7. Cross-functional Teams

1.3. Centralization and Decentralization

1.4. Work specialization

1.5. Span of Control

1.6. Chain of Command

2. Formal and Informal Organization

2.1. Formal organization

2.1.1. Official nature off the organization

2.1.2. Authority and responsibility

2.1.2.1. Authority

2.1.2.1.1. Line Authority

2.1.2.1.2. Staff Authority

2.1.3. Focus on position

2.1.4. Power delegated by managements

2.1.5. Specific rules and policies

2.1.6. Rewards & Penalties

2.2. Informal Organization

2.2.1. Unplanned structure

2.2.2. Fulfillment of social needs

2.2.3. No formal structure

2.2.4. Informal leaders

2.2.5. Informal communication system

2.2.6. No rules and regulations

2.2.7. No fixed tenure

3. Organization structure

3.1. Functional departmentalization

3.2. Geographic departmentalization

3.3. Customer departmentalization

3.4. Product/Brand departmentalization

4. Two Strategy Levels

4.1. Business-level Strategy (Competitive)

4.1.1. Cost Leadership Strategy

4.1.2. Differentiation Strategy

4.1.3. Focus Strategy

4.2. Corporate-level Strategy (Companywide)

4.2.1. Growth Strategy

4.2.1.1. Concentration

4.2.1.2. Vertical Integration (backward and forward)

4.2.1.3. Horizontal Integration

4.2.1.4. Diversification (related and unrelated/Conglomerate)

4.2.2. Other Corporate Strategies

4.2.2.1. Stability Strategy

4.2.2.2. Renewal/Retrenchment Strategy