Bacha log, this Module we will see the importance of structure in strategy implementation.
Now changes in strategy often require changes in the way an organisation is structured,
right. There are two main reasons, structure largely dictates how objectives and policies will
be established. Example, objectives and policies established under a geographic
organisational structure are couched in geographic terms. So objectives and policies are
stated largely in terms of products in an organisation whose structure is based on product
groups.
Secondly, structure also dictates how resources will be allocated. Example, if an
organisation’s structure is based on consumer groups then resources will be allocated in
that particular manner. So these are the two reasons why there should be a change in the
structure when there is a change in the strategy.
Now let’s check this question, that Structure influences strategy. Is this statement correct?
Yes, the statement is correct. The structure can and does influence strategy. Okay, so
strategies formulated must be workable, that is, if a certain new strategy requires massive
structural changes it would not be a choice. So this makes it very clear that structure
influences strategy.
Now let’s see here in the Chandler’s Strategy, now Mr. Chandler or Professor Chandler
teaching in …