lly critical activities. This has been particularly the case of numerous staff activities and administrative control processes, previously the domain of various middle level management. Further scrutiny has led managers to conclude that these activities not only add little value or no value to the product or services, but that they are either unnecessary or they can be done much more cost effectively by other businesses specializing in these activities.Outsourcing then can be a source of competitive advantage where activities, which the company can out rightly eliminate, are excluded from the structure.Example Unilever decided to eliminate its huge R & D department from its structure as a strategic decision. This department was later formed to be the current Research International firm, which is a world-renowned market research.Another example could be the elimination of transport services from the USIU administration structure opting for an outside agent to offer the same service.3.4Strategy structure evolutionThere is usually a general sequence that a firm adopts as it continues to grow and expand. The sequence may be in either of the two following ways.Volume expansionToGeographic expansionToVertical integrationProduct diversificationSingle productToSingle dominant businessTo Related diversifies businessesToUnrelated diversifies businessesIn line with the above strategy evolutions, structure also follows suit in adapting to each stage of evolution.The following structure-strategy fit is often maintained.1.Functional structure is often used for strategies of single dominant business.2.Divisional structure is applied where we have a strategy of several lines of business, which are somehow related.3.The SBU structure is also applied where we have a strategy of several unrelated lines of business.NB: Its also worth noting that the firm that achieves the first structure strategy fit will achieve the most of competitive advantage in its in...
