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MGT 488 Week 4-DQ2




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What is the relationship between strategy and structure within the context of
strategic implementation?
Strategy and Structure have a mutual association. “The general nature of the strategy/structure
relationship means that changes to the firm’s strategy create the need to change how the
organization completes its work” (Hitt, Ireland, & Hoskisson, 2009, p. 312).
What is a simple structure?
A simple structure “…is a structure in which the owner-manager makes all major decisions and
monitors all activities while the staff serves as an extension of the managers supervisory
authority” (Hitt, Ireland, & Hoskisson, 2009, p. 314). A simple structure is often employed in
small businesses. The owner of the company typically oversees operations on a daily basis and
participates in the activities as well.
What is a functional structure?
As small businesses expand the structure may change. A functional structure “…consists of a
chief executive officer and a limited corporate staff, with functional line managers in dominant
organizational areas such as production, accounting, marketing, R&D, engineering, and human
resources” (Hitt, Ireland, & Hoskisson, 2009, p. 314).
What is a multidivisional structure?
To achieve more diversity organizations may need to employ a multidivisional structure. The
multidivisional structure “…consists of operating divisions, each representing a separate
business or profit center in which the top corporate officer delegates responsibilities for day-to-
day operations and business-unit strategy to division managers” (Hitt, Ireland, &
Hoskisson, 2009, p. 315).
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic Management: Concepts &
Cases Competitiveness and Globalization (8th ed.). Mason, OH: South Western Cengage

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