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    Discussion on Evaluation and Control

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    Please address the following:

    1. What does it mean to say that strategy and structure have a reciprocal relationship?

    2. How do effective corporate governance measures ensure the interest of all stakeholders are served?

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    Solution Preview

    1. What does it mean to say that strategy and structure have a reciprocal relationship?

    It means that the two influence each other. It is crucial to match organizational structure to the company's strategy, which in turn, influences strategy.

    Let's explore the two concepts in a little more depth to better understand this relationship.

    The organizational structure (OS) specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes. Based on the firm/s strategy or strategies, the OS specifies the work to be done and how to do it. An effective structure provides both stability (e.g. the capacity required to consistently and predictably manage daily work routines) and flexibility. Structural flexibility allows the opportunity to explore competitive possibilities and the allocation of resources to activities that shape needed competitive advantages.

    Organizational controls include strategic and financial controls. The general purposes ...

    Solution Summary

    This solution is comprised of a response of about 550 words, including references, which discusses corporate governance and the reciprocal relationship between strategy and structure.