Running head; ROTHAERMEL TEXT EXERCISES THREE
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Rothaermel Text Exercises Three
BUSI 690-D03
Liberty University
Steven Conrad
ROTHAERMEL TEXT EXERCISE THREE
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Rothaermel Text Exercises Three
Chapter 11
Discussion Question 11.1; Why is it important for an organization to have alignment
between its strategy and structure?
If run properly, and the correct resources are gathered, organizations will grow. As this
growth takes place, leaders within the organization will need to revise their strategy again and
again to allow the organization to keep growing. A. D. Chandler (1962) study firms that grew
and determined that, when growth happens, there must be changes made in the structure of the
organization to support the new growth and continue to operate the organization efficiently (p.
15). In later research, the connection between an organizations strategy and its structure seems
to have reversed. A new theory emerged proposing that structure determines strategy. These
theorists suggest that because of the different values and norms of leaders within an organization,
the strategy will develop, and change based on the organizations structure (Hall & Saias, 1980).
While this may be what happens, it does so because of fear. Rothaermel (2017) points out that
managers tend to avoid dealing with the consequences of changing the normal way things are
done. Therefore, they create strategy around their existing structure instead of adjusting structure
around the correct strategy (p. 368). Doing this has shown to lead firms to fail. To avoid failure,
firms must have a give and take relationship between structure and strategy. The two must be
aligned properly.
Discussion Question 11.2; The chapter describes the role of culture in the successful
implementation of strategy. Consider an employment experience of your own. Describe to
the best of your ability the values, norms, and artifacts of the organization.
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What was the socialization process of embedding the culture? BestBuy Inc. has four
specific values that its employees hear from the first interview and strive to live by every day.
When employees are brought in for new hire orientation these core values are repeated. No
employee at BestBuy goes a day without hearing or seeing the values posted or being lived out
(Internal Observations, 2019).
Do you consider this to be an example of an effective culture for contributing to the
organization’s competitive advantage? Why or why not? BestBuy’s values are exactly what
drives the organizations continued success. The employees living out these values helps
maintain the competitive advantage as employees create relationships with customers every day.
Without happy, committed employees there would be dissatisfied customers. Without happy
customers, there is no competitive advantage and eventually no business.
Chapter 12
Discussion Question 12.1; How can a top management team lower the chances that key
managers will pursue their own self-interests at the expense of stockholders?
To align incentives between shareholders and management, the board frequently grants stock
options (p. 412).
To align incentives between shareholders and management, the board
frequently grants stock options
At the expense of the employees?
At the expense of other key stakeholders?
Auditors, government regulators, and industry analysts
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AAA
Discussion Question 12.3; The shared value creation framework provides help in making
connections between economic needs and social needs in a way that transforms into a
business opportunity. Taking the role of consultant to Nike Inc., discuss how Nike might
move beyond selling high-quality footwear and apparel and utilize its expertise to serve a
social need. Give Nike some advice on actions the company could take in different
geographic markets that would connect economic and social needs.
AAA
References
Chandler, A.D. (1962), Strategy and Structure: Chapters in the History of American Industrial
Enterprise (Cambridge, MA: MIT Press), p. 15
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Hall, D. J., & Saias, M. A. (1980). Strategy follows structure!. Strategic management journal,
1(2), 149-163.
Rothaermel, F. T. (2017). Strategic management concepts (Custom 3rd ed.) New York, NY:
McGraw-Hill.
