Understanding Organizational Structures And Strategic Change Commerce Essay

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"Structure must submit to Strategy" is familiar to most people in the world. The division of labor in the organization is decided by organizational structures. Organizational structure either can support corporate strategy or erosion it. Organizational structure is concerned with both the division of labor and coordination of tasks. The design of the enterprise organizational structures must be encouraged different departments and teams to keep their uniqueness in order to fulfill the different tasks. The design also must be integrated the departments and teams to realize the strategic target of the whole enterprise. So, before the design of organizational structures, if the corporate elaborate the meaning of the strategy target detailedly, then concretion a rule of organizational structures design. According to this rule, we should review enterprise organization, department set, distribution functions and position set nowadays. In this condition, optimizing the organizational structures and thinking about if the revolution of organizational structure is accord with corporate strategy in each step of change. It is much important and useful to save time when corporate organization structures changed and improve abilities when enterprise strategy implementation. Pringles organizational structures must be consider the harmony between each department. The raw material of chips needs to buy from plantation in one place and production in another. Finally, the production will be input markets in different places. Coordinate with departments play an important role in corporate organizational structures. An excellent organizational structures design will bring the company markets and profits.

2.2 Strategic Change

The changes of corporate strategy require enterprises to adjust organizational structure accordingly. The aims of every enterprises adjustment are the same: improve the ability that enterprise strategy implementation. With the popularity of organizational theory in practice like organization networking, organizational delayering, bushiness process reengineering, many enterprises change the organizational structure as their ultimate goal of corporate strategy or treat strategy and structure as surface. It means that changes in organizational structure do not reflect the intent of strategy adjustment. And all these will lead to a constant changing in organizational structure by corporate management. But the result of the change is not good. Pringles for example, if the weather in where the potato origin changed the corporate must be adjust the strategy immediately. The company should find a new potato origin to replace the original material origin, and according to the local condition construct a new production and processing logistics system. Only the strategic change could compatible with the realities.

3 Strategic Leadership and Corporate Culture

3.1 Strategic Leadership

There are 4 aspects should be considered when we talk about the strategy development and management. PEST analysis means analysis of the macroeconomic environment, P is politics, E is economy, S means society, T is technology. When we analyze the background of one enterprise group, it usually through these four factors to assess the situation it faced. When draft a strategic plan, it necessary to consider them. When the external environment changed periodical, we need to respond correspondingly. In this way, the corporate will have the most advanced strategic planning and will have an invincible position in the market. Take Pringles for example, when make the strategy plan, it is necessary to consider if government has regional incentives for potato cultivation, if it fits the income level of the major consumer groups, if we has the social demands for potato chips, if the potato chips processing technology of our company is advanced. In china, Pringles choose northeast area to cultivate potato because the climate is comfortable for potato and it also has regional incentives. Otherwise, convenient transport reduces the costs. All these make the material much cheaper. Strategic plan like this will give the enterprise a dominant position in the market.

Strategy establishment is based on the comprehensive consider and appraise to external environment and internal condition. However, more and more enterprises attention to analyze the external market and competition when they draft the strategy, the realization of their own ability is limited. Even if the strategy is conform to the market development and other companies achieve successful with the similarity strategy, the strategy unsuited for the corporate itself. As a result, it is not propriety to attribute strategy failure to lack of strategy implementation.

3.2 Corporate Culture

Corporate culture always reflects the core value, attitude and manners inside. As you know, they are not steady. The change of extra environment certain requires strategy adjustment accordingly; and the changes of extra environment and strategy adjustment certain claim the change of corporate culture. Is it a positive power or negative? It depends on the match of corporate culture, the enterprise environment and strategy. An advanced corporate culture can not only stimulate the enthusiasm of the staff, promote them working hard according to the way they want, but also to adapt to the change of dynamic environment and adjust of corporate strategy. The outdated one should be the obstacles which restrict the strategy implementation, or even become a major factor in Stifling enterprise. So, it is important to foster a health and excellent culture that fit with corporate strategy and to enhance the strategy implementation plays a vital role. The major goal of Pringles is to arouse the potential of the employees maximize, so that the employees feel the company like a big family as their corporate culture.

4 Corporate Governance and Strategic Control

4.1 Corporate Governance

Corporate governance has many aspects, a successful manager need comprehensive consider of both external and internal environment of enterprise, including political environment, economic forms, society needs and the advantage of their own technology. They are the essential for corporate governance. Corporate governance also need consider a substantial factor of staffs. Because staffs are the most important part of the company and the belief and thought of their own may be influence the development of corporate. On the whole, only think about all these things the enterprise will become the real good one. The organizational structures of Pringles are relatively complex, the material origin and processing factory maybe in two different places. The governance of different subsidiary companies and their employees in variously areas is the crucial part of corporate governance.

4.2 Strategic Control

If different levels of corporate strategy lack of internal connection or the whole company lack of effective support from business layer and functions layer, the strategy implementation will failure ultimately. The problem can't be resolved by improve strategy implementation. Meanwhile, during the strategy implementation process, because the distance between the actual environment and the expectation on it when make the plan, the enterprise need adjust the strategy accordingly. As a result, strategy can't be achieved doesn't mean a lack of strategy implementation. Still look Pringles, as a material potato is a vital factor to production---chips. To get more profit, manager usually set the raw material origin and processing factory in two places. A number of issues on management and strategy implementation consequently happen. How to implement the strategy of our company between different levels? We should make effort to find a better answer. We need to pay more attention to each detail when executive control the corporate strategy. Choose a right place where the material origin and processing factory in order to decrease the transportation cost. Advertise to the major consume of chips in order to increase the competition of Pringles production. When we are shopping in the market and want some chips, we choose Pringles not others. So Pringles should be the first choice if the strategic control of corporate well.

5 Conclusions


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