Running head: EXERCISE 3
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Exercise Three
Liberty University
9/2015
BUSI 690
EXERCISE 1
2
Chapter 11
Discussion Question 11.1
An organizational strategy is known as the plan for the organization. It’s the plan of
action on how an oganization will reach its goals while maintaining relationships with customers
and suppliers. An organizational strategy allows a firm to outline and build their comapny
structure. A company structure is a direct result of the understanding and knowledge of the
company’s organizational strategy. If a company changes its strategy it must change its structure
so the organization can meet its mission and goals. The company’s structure supports the strategy
as they are dependent upon each other. Its important to have alignment between a company’s
strategy and structure because it helps to encouage motivation within the organization. Team
members need to work together in order to develp a product that meets the customers needs and
provide quality customer service. How products work together depends on the product and how
they are marketed.
Discussion Question 11. 3
W.L. Gore & Associates strategy seem to fit the strategy mentioned in 11.2. W.L Gore &
Associates seem to focus on unique technology and product innovation. As many Government
contractors do, W.L. Gore provides excellent products and quality customer service which allows
military personnel to focus on their mission. Flexibility and cross-functional teams provide
commonalities across product. Some products may not be strong enough to stand on their own
however, together dependent on each other these products are in high demand. A company, who
encourages cross functional teams to work together, may develop a product that meets a
customers need that no one company can compete against in the marketplace. This company
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provides a structure and strategy of many employees who are knowledgeable about other areas
within the organization and can assist in multiple job positions.
Many innovative organizations expect employees to learn continuously and grow in
knowledge, skills and abilities to become a well-rounded employee within the organization.
Many products depend on how they are marketed to the customer so a core value in any personal
or business experience is to make a commitment and keep the commitment. This culture is a
team building action within an organization that binds people together to create a positive and
energetic behavior.
Chapter 12
Discussion Question 12.1
Many influences can lead key managers to project certain behaviors in business. An
example of how a firm can lower the chances of a key manager pursuing their own self-interest
at the expense of an organization is if the sales manager is paid bonuses based on the profit he
earns for the company each year or if the manger is paid with stock options. The investment and
employee makes within the organization may guarantee the manager will support the
organization over self-interest. The more motivation a company can give an employee to work
harder and earn a larger salary the more profits the organization will make in the end. Sales
positions as with many jobs are results driven careers. The more results the better profits.
A company needs to design work tasks, incentives and employment agreements as other
control mechanisms in order to diminish opportunistic behavior at the expense of the employees.
An organization can maximize shareholder value by using governance mechanisms. Internal
mechanisms are controls that monitor the progress and activities of the organization. They
provide clear performance measurements and expectations of the employees. Many organizations
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have independent audits completed on their financial statements to govern and control the
structure of the firm. Governance mechanisms such as mission statements are used to reduce
information irregularity and to align incentives between managers and employees as well as
managers and the organization.
Discussion Question 12.2
In many family businesses or small companies there is an intermingling of management
and ownership. The reason these two roles are typically separated is to have better oversight and
monitoring, (Chandler, 2015) .In some cases it can be a conflict of interest and detrimental to the
organization. CEO’s typically manage hiring, compensation and financial interests of the
company. Therefore, with no oversight who is making sure the company’s profits are being spent
responsibly. In the stewardship theory the roles are combined and are considered to be a positive
development for many firms. Many companies believe the “unity of command” provides a clear
cut leader to oversee critical issues and provide organizational success, (Tonello, 2011)
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References
Chandler, G. N. (2015). Control structures used in family business to manage wealth:
Operationalization of antecedent and outcome variables. Entrepreneurship Theory and Practice.
Rothaermel, F. (2013). Strategic Management Concepts and Cases. New York, NY:
McGraw-Hill.
Tonello. (2011, September 1). Separation of Chair and CEO Roles. Retrieved from
http://corpgov.law.harvard.edu/2011/09/01/separation-of-chair-and-ceo-roles/
