Running Head: DISCUSSION BOARD 3
Rothaermel Exercise 3
Malcolm Evans
Liberty University
Summer 2016
Discussion Question 11.1
It is important for organizations to have alignment between strategy and structure for
many reasons. One being that this alignment will have a direct affect or the organizations
performance. Those in charge of designing the structure will do so know the structure of their
organization and what they are able of accomplishing. As the company grows and begins to
diversify they will have to begin to align their structures to meet the new focuses of the differing
segments. When an organization changes it structure and not its strategy, the strategy will change
to fit the new structure. If the organization makes any adjustments in the strategy, they also need
to adjust the structure to support those changes. The alignment of strategy and structure will also
help the organization gain, and maintain a competitive advantage over their competitors. It is
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important to know what product or service you will be offering, who you are offering it to, and
why you are offering it to them, so that you are able to create a supporting structure to help carry
out those strategies.
Discussion Question 11.2
I currently work at Capital one, that aim to have an open culture were a meritocracy of
ideas and harnessing collective wisdom trumps titles, and hierarchy. They are committed to
developing and growing employees at all levels in order to drive business results. They provide
their employees with a dynamic environment combined with two key values: excellence, and do
the right thing. They encourage their employees to thinking independently in a collaborative
setting and to present creative ideas to management.
I believe that is plays a major part in the company’s growth over the last 20 years, as well
as Capital One’s success. Capital One is known for taking care of and providing value to their
employees in order to retain their knowledge and skill sets. Their cultural success of the
company is driven by attracting great people and giving them the opportunity to be great. The
founder and current CEO recognizes this and stated “At Capital One, our people are the source
of our greatest competitive advantage, and leadership development has always been at the
foundation of our success as a company.” From the conception of the company they have
targeted creating a culture where their leaders can live their values, challenge conventional
wisdom, and take on new challenges which fuels their development. Employees want to work
somewhere where they are valued, appreciated, and have been given the opportunity to be
successful.
Discussion Question 12.1
In order for top management to lower the chances that key managers will pursue their
own self-interest at the expense of stakeholders is by aligning the incentive of those managers by
paying efficient wages, commissions, bonuses, and stock options. With this method the pay of
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those managers is tied to the success of the organization. With this, if the organization is
successful, than the managers will be successful as well.
When it comes to lower the chances that key managers will pursue their own self-interests at the
expense of employees, is through monitoring. Monitoring through employees, cameras, and
other individuals, will provide pressure on the managers to do what’s right at all times.
Discussion Question 12.3
When it comes to expanding to serve a social need could look at growing solar power for
developing countries. Contributing to the economic development of others would be an
extremely positive outlook for the company. By developing these systems, the company is lacing
themselves in a position to bring in jobs that will benefit their society as a whole and provide for
a sustainable future for them as well. This will bring in much needed equipment, and provide
those countries with practical skill training so that they will be able to maintain the systems
installed by the company. Nike is known for being successful, and bringing further attention to
underdeveloped countries and how large corporations can help will increase their status in the
market. One of the most important things Nike must work on, is while they are also known for
having extremely large profit margins, the company should ensure that all of their workers,
including those in their supply factors of receiving decent pay and working conditions to help
build their economies as well.
