they guide and control operations in a manner consistent with current business and functional strategies. 3.IMPLEMENTING STRATEGY THROUGH STRUCTURE.3.1Why should we consider structure?Structure is basically the best way to organize a firm in order to accomplish its objectives.It acts as the medium that facilitates the accomplishments of the organizational goals.It also helps to identify the key activities of the organizational processes and how they are coordinated.Successful strategy implementation depends to a large extent on the firms primary organizational structure. A primary organizational structure comprises the firms major elements, components, or differentiated units.Other means of getting organized are through reward systems, coordination terms, planning procedures, alliances, information, and budgetary systems.However, it is through the primary structure that strategists attempt to position the firm to execute its strategy in a manner that balances internal efficiency and overall effectiveness.3.2Primary Organizational Structures and their Strategy-Related Pros And Cons. Primary structures can be classified under the following categories:Functional StructureGeographic StructureDivisional StructureStrategic Business UnitsMatrix OrganizationWe will address each one of them.3.2.1Functional Structure:Mainly occur in organizations with single or narrow product focus, require well-defined skills and areas of specialization to build competitive advantage in providing their products/services.Dividing work into functional specialties enables personnel to concentrate on only one aspect of the necessary work. This allows use of latest technical skills and develops a high level of efficiency.Functional areas can be divided into engineering, production, human resource, finance and accounting and marketing.Another way of dividing could be: purchasing, receiving and inventory, order entry, wholesales, retail sales, accounting, billing a...
