Running head: EXERCISE 3 1
Rothaermel Exercise 3
Lydia Wray
BUSI 690
Liberty University
Rothaermel Exercise 3
EXERCISE 32
Chapter 11
Discussion Question 11.1
Why is it important for an organization to have alignment between its strategy and
structure?
An organizations structure can be defined as “how the work efforts of individuals
and teams are orchestrated and how resources are distributed” (Rothaermel, 2017, p.371).
Rothaermel (2017) also shows that strategy can be broken down into specialization,
formalization, centralization and hierarchy. On the other hand strategy can be seen as the plan in
which the organization can use their major resources to achieve their given goals and intentions,
as well as also be profitable. To improve one’s company, the strategic and structural
organizations must work together. The important and interdependent relationship between
strategy and structure directly impacts a firm’s performance (Rothaermel, 2017, p.374). If each
are aligned then this can help the organization build its structure and foundation from the given
strategies. This can help the organization work as a team to have the best results and see what
structures can be implemented. If a company changes their given strategy, then they must also
align with the changes in their structure so that each department has equal variations. If they do
not align, then there could be repercussions of the given company to meet its goals and achieve
their mission within the future.
Discussion Question 11.2
The chapter describes the role of culture in the successful implementation of
strategy. Consider an employment experience of your own or of someone you have
observed closely (e.g., a family member). Describe to the best of your ability the values,
norms, and artifacts of the organization. What was the socialization process of embedding
EXERCISE 33
the culture? Do you consider this to be an example of an effective culture for contributing
to the organization’s competitive advantage? Why or why not?
All companies want to make sure that they are the best at what they provide to their
customers. According to Rothaermel (2017), organizational culture is seen as “the collectively
shared values and norms of an organization’s members” (p. 384). The value of the manager
within the organization can be seen as someone who maintains the order of business and makes
sure to compensate his or her employees. If the manager and the organization understand the
culture of the company then they each can succeed in their goals. Norms on the other hand can
be defined as the “appropriate employee attitudes and behaviors” while values are “what is
considered important” (Rothaermel, 2017, p. 384). Taking into account these two elements can
show the durability of the company. Artifacts of a company or organization can include things
such as “the design and layout of physical space, symbols, vocabulary” (Rothaermel, 2017, p.
384) and much more. Having all of these elements working together in the organization can aid
in providing the company a strong and greater probability of success within the future if these
values are maintained.
Culture is embedded throughout the work force and it is in the concepts of understanding
and preserving a company’s values and norms that make one successful. Within Habitat for
Humanity, socialization involves the approach that no matter who the house is for, you built it as
if it where your own and put all your love and effort into it. Acts 20:35 writes that “in all things I
have shown you that by working hard in this way we must help the weak and remember the
words of the Lord Jesus, how he himself said, ‘It is more blessed to give than to receive’”(ESV).
Performance expectations are measured through the different connections and communication
with the volunteers and the future homeowners.
EXERCISE 34
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? At the expense of the employees? At
the expense of other key stakeholders?
Whether one may want to believe it or not, everyone is driven by their own self-interests.
People even believe that “managers’ conducts are ordered in such a way that pro-organizational,
collectivistic behaviors have higher utility than self-serving, individualistic behaviors”
(Fernández-Gago & Martínez-Campillo, 2012, p.168). Managers can be faced with the decision
on whether the choice and decision that needs to be made is one that will be beneficial to the
company or themselves. To lower the chances that key managers will pursue their own self-
interests, they need to make sure that the decision that they make day in and day out reflects the
best on the company and their organization.
At the expense of the stockholders, the top management group can help in combining and
aligning a payment package for the manager to include even shares of that given company’s
stock. Providing those stock options for the top managers can show how the company wants to
make sure that they can help in providing the strength, knowledge and value to the organization
to make it thrive. If the company does well, then the managers value of the stock also performs
well, which can be seen as a “win-win” situation. At the expense of the employees however,
upper management can put rules and regulations into place that can lower the chances that top
management is only focused on their self-interests. Things such as performance contracts and
equal responsibilities throughout the management team can make sure that the manager does not
put themselves first over others.
EXERCISE 35
Other key stakeholders within the organization or company, such as the customers or
even the suppliers that product is received from, can make sure that the self-interests of the top
managers are not impacting their companies by putting regulations or rules into place to make
sure that the contracts that each hold with one another are followed and obeyed. Everything can
work together to make sure that the best interests of the company or organization are seen first,
rather than the self-interests of the top manager.
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.
Executives and upper management of globally known companies always try to find ways
in where they can branch out their product and brand throughout different organizations by
implementing different strategies. Being a consultant for Nike, there are many different ways that
the company can move beyond selling high-quality footwear and apparel and begin to utilize
their platform to serve a social need. Suggesting that the company focus on their economic value
can also aid in their shared-value approach by reconnecting Nike with their social progress
throughout the way and show how great of a job they have done. The shared value creation
framework seeks to enhance a firm’s competitiveness by identifying connections between
economic and social needs, and then creating a competitive advantage by addressing these
business opportunities (Rothaermal, 2017, p.405). Having shared values within the company can
EXERCISE 36
help develop different improvements that the managers can be made aware of, to see what needs
of the society can be met and which need work. Having the understanding of shared value
creation can allow different managers within the companies and organizations to develop and
expand their knowledge of all different skills.
Knowing that Nike is one of the top athletic manufactures of sporting equipment and
apparel shows just how wide their brand and products go from a global standpoint in different
organizations. So of the advice that can be given is that to gain that wanted competitive edge
throughout the world, Nike needs to make sure that they are also helping take care of the
countries around the world and make sure that people are staying healthy and active. In helping
their consumers to stay active and moving also decreases the obesity rate and lower possible
diabetes and even heart problems. In addition, since the country has continued to go towards a
green way of life, Nike can also help in developing eco-friendly products that are good for the
ozone and world. In doing this, Nike can then gain another demographic of consumers that they
may once not had the chance to obtain.
EXERCISE 37
References
Fernández-Gago, R., & Martínez-Campillo, A. (2012). Teaching business management from a
perspective beyond self-interest. Innovar, 22(46), 165-174. Retrieved from
http://www.scielo.org.co/pdf/inno/v22n46/v22n46a12.pdf
Rothaermel, F. T. (2017). Strategic management concepts (Custom 3rd ed.) New York, NY:
McGraw-Hill.
