Chapter Twelve CORPORATE SINGLE INDUSTRY STRATEGY - This chapter is related to organizational control, structure and culture. Learning Objectives * Understand how organizational design requires the right combination of structure, control, and culture. * Discuss how effective organizational design enables company to increase product differentiation, reduce costs, & build competitive advantage. * Explain importance of flat hierarchy & factors determining centralization/decentralization * Explain advantages of functional structure & why/when necessary to move to more complex structure. * Differentiate between complex forms of structure used for specific business-level strategies. - What comes first strategy or structure? During the 60s and 70s the strategy should follow your structure. The debate continues. Look at it based on the industry characteristics and the type of organization you are in. In the 90s researches argued that your structure should follow your strategy. As the strategy is more comprehensive than the structure, then structure should follow the strategy. The business environment is independent and the company is the dependent. Then we should follow the business environment. When we do the strategy, we examine the macro business environment the micro business environment the competitors analysis and understand the industry characteristics. Then we have to follow the market trend. - Structure: Organizations chart, functions, flow of information, communication, coordination. Change management, resistance, positions that may be removed merged or created, control process and change barriers and change agents. The shortest definition of strategy is that it is the vehicle that