Limitations on strategies/ organizational culture
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If structure dictates strategy, would you think there would be limitations on what strategies a firm can pursue?
Should organizational culture and structure be preserved even if a firm lets go of certain strategies/opportunities? (Example: Chick-fil-a)
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Solution Summary
Limitations on strategies and organizational culture are determined. The expert determines if organizational culture and structure should be preserved even if a firm lets go of certain strategies/opportunities.
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If the organizational structure of a company dictates strategy, then there would absolutely be limitations on potential strategies a firm can pursue. Consider an organization with a very vertical hierarchy and multiple layers of management and decision makers. Now, consider a competitive firm with a very flat hierarchy and empowered management who can make all but the most critical decisions on their own. Let's imagine in their marketplace, there is one segment that is price competitive and expects long term contracts to be penned quickly. The company with the flat hierarchy has done well in this market space while the other firm has not. With a vertical hierarchy, the very structured firm will likely have a ...
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