Running head: BUSI 690 ROTHAERMEL EXERCISE 3
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BUSI 690
Rothaermel Exercise 3
BUSI 690 ROTHAERMEL EXERCISE 3
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Chapter 11 Rothaermel Text
Discussion Question 11.1
A business structure is the layout of a business’s hierarchy and a business’s strategy is a plan to
achieve the business mission and objectives (Marx, 2016). Strategy and structure is a critical
component for a business to be successful. Alignment between a business’s structure and strategy
plays a critical role in how successful a business is. By combining the two a company can use its
structure to execute the strategy of the company. This is done by having the structure of the
company align with the strategy to make sure the proper support is in place to achieve the
company’s strategies. The structure of a company is crucial to achieve the strategy of the
company if this is not done properly the strategy will be not be executed and a company could
end up also losing revenue and not be sustainable long term. As a strategy is set for a company a
company can move personnel around and move to a centralized or decentralized structure to
align with strategies. Alignment allows for efficiency, clear responsibilities for employees and
departments, and the ability for the company to achieve their goals.
Discussion Question 11.2
An Organizational culture is the mutually shared value and norms of an organization’s
members (Rothaermel, 2017). Verizon has a great organizational culture which has been created
by leadership. The values of the company are integrity, respect, honesty, teamwork and support.
This has led to a culture that is appreciated by all employees and other companies look to copy.
This culture is embedded from the top of the company to the bottom of the company. Due to the
various regulations that the telecommunications industry faces or different issues happening in
the workplace, the norms can change each year.
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The company is always looking for ways to make the work environment better and safer. Also
they are always looking for ways to protect customers and set industry standards. Verizon
artifacts are done by upgrading buildings, new products and technology. The company also has
events to recognize employee performance that include awards, gifts and vacations. The
socialization process of embedding the culture occurs in these three phases anticipatory
socialization, organizational Encounter, and metamorphosis. The anticipatory part occurs through
training of new employees and even current employees of Verizon and changes the company is
making.
Encounter happens when a new employee gets to learn their role and any questions they may
have had about their role is answered and they can establish work relationships with coworkers
and management. The metamorphosis process is when the new employee is able to adjust to the
job and the company by making adjustments within themselves. With the culture that Verizon
has created this has led to competitive advantages because of the support and employees have to
service customers and complete task. This culture has led to employee/management trust and a
culture of creativity.
Discussion Question 12.1
A business face a tough challenge of controlling a manager who will pursue their own
interests. Mangers with their own interest that are different than the company’s will do this at the
expense of stakeholders and can hurt their company short term and long term (Bridoux &
Vishwanathan, 2018). To control this top management has to create a plan to control this through
checks and balances and they have to give employees incentive not to pursue their own interest.
Along with a fair salary top management can give managers stocks in the company. By giving
managers stock that can help a company with trying to make sure a manager does not go off
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course and the manager will be focused on growing a company and capturing new revenue to
improve company stock prices. They can also tie bonuses and additional compensation tied to
company profits and stock prices (Bridoux & Vishwanathan, 2018).
Top management should look for ways to align managers with the proper management chain
and look to put controls in place to monitor them if possible. Also through continued training on
ethics and honesty, along with messages from top management should help to get them focused
so they do not go off course. By taking these steps top management can protect the company and
its stakeholders.
Discussion Question 12.3
Shared value creation is a strategy that a business uses to create a value for the business by
pinpointing a social problem. After pinpointing the problem the company addresses the problem
through their business model. By doing this it can led to a new business opportunity for the
company. Nike is a company that sells quality athletic wear from hats, jackets and shoes for any
sport or even just walking. I would advise Nike to look at entering into developing and
undeveloped markets that have a need for high quality athletic wear. They can set their prices at a
certain price point that consumers in these markets can afford their products. In developing
countries this will help to solve a problem and create customer loyalty long term. Nike can also
promote the benefits of their shoes along with campaigns that promote health and wellness in
these markets. To also help them create consumer loyalty Nike can work with communities to
build recreation centers, help build schools and sponsor rec centers, teams and athletes with
clothes, uniforms and shoes. These will help to identify a social issue and Nike can gain
economically and start long term consumer relationships.
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Reference
Bridoux, F. M., & Vishwanathan, P. (2018). When do powerful stakeholders give managers the
latitude to balance all stakeholders’ interests? Business & Society, 765031877507.
doi:10.1177/0007650318775077
Marx, T. G. (2016). The impacts of business strategy on organizational structure. Journal of
Management History, 22(3), 249-268. doi:10.1108/JMH-01-2016-0003
Rothaermel, F. (2017). Strategic Management (3rd ed.). New York, NY: McGraw-Hill Education.
