Running head: ROTHAERMEL EXERCISE 3
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Rothaermel Exercise 3
Liberty University
BUSI 690
Rothaermel Exercise 3
Discussion Question 11.1
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Rothaermel (2017) defines an organizational structure as, how work efforts of the organizational
staff and resources are orchestrated and distributed. The strategy is a plan where organizations
use major resources to reach the goals of the company. A strategy in the organization is
classified into four different categories: specialization, formalization, centralization, and
hierarchy (Rothaermel, 2017). In order for an organization to be successful, the strategy and
structure must correlate with one another; the interdependent relationship is affected by the
strategy and structure of the firm (Rothaermel, 2017, p.374). When both strategy and structure
work together, it helps the organization achieve better results. In the event, the structure and
strategy will not allow the organization to meet its goals in the future.
Discussion Question 11.2
It is essential, as well as important for organizations to adhere to customer’s needs.
Organizational culture is described as shared values and norms from the organization’s members
(Rothaermel, 2017, p. 384). A manager of an organization is the person who is responsible for
making sure that the business runs smoothly. Compensating employees is part of the many tasks
that managers have an obligation to meet. An organization is successful in reaching the goals of
the company when managers and employees understand and implement the culture. Rothaermel
(2017, p. 384) defines norms as employees exuding appropriate attitudes and behaviors when
important values are implemented. The design and layout of the space, symbols, and vocabulary
are a few of the elements of an organization. Having these elements will provide the company
with future success (Rothaermel, 2017, p. 384).
When employees fully understand and engage the culture of the organization they work for,
the company’s values and norms are preserved, thus making the employees and the organization
successful. Socialization within the organization, Habitat for Humanity has an approach of, the
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individual in need of a house will put all efforts and love into building their home. Proverbs 22:9
“Whoever has a bountiful eye will be blessed, for he shares his bread with the poor (ESV). This
scripture says that those that share with others in need will receive many blessings.
Chapter 12
Discussion Question 12.1
It is typical for individuals to think about their own interests above anything else. In the
hierarchy chain, top management has an obligation to pursue the business interests, while
training key managers to do the same; however, working in a collectivistic culture will allow the
staff to collaborate and compromise while focusing on a group rather than one's self (Baeza, M,
& Yong, W., 2016). The top management team will need to analyze what the main priority is
while enforcing top priority to the key managers. Lowering the chances of self-interest, the top
managers should practice the best interest of the organization daily, to ensure that the message is
getting through to their managers.
It would be recommended for the top management to create a plan for the key managers to
implement a monthly meeting where the managers discuss the stock of the company. If the
managers are tasked with researching and presenting the information, it will give them a clearer
picture of how well or bad the company is doing. Another option would be to provide a benefit
for the staff to get more involved with the stocks. For instance, the company could offer a match
of the contributions, or the company could offer stock at a discounted rate. All of the options
would aid in building knowledge, and strength to add value in making the company more
successful.
Discussion Question 12.3
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Strategies are used for companies looking to promote their products and enhancing the business.
As a consultant for Nike, it would be suggested that the company show a focus on community
efforts around the world. Nike’s marketing is focused mainly on shoes and apparel. They
currently showcase athletes in their commercials; however, if they were to show that the
company is highly involved with outreach programs that show humanitarian efforts, individuals
may appreciate what the company does for others. The company should focus on economic
values as well to help in reconnecting with consumers. Rothaermel (2017, p. 405), says that the
shared value creation framework is implemented to help a firm with competition, which aids in
connecting with economic and social needs. A shared value creation framework will then create
a competitive advantage to help grow the business. Lastly, as a Nike consultant, it would be
recommended that Nike switch their marketing focus to highlight community efforts to show
consumers that the company truly cares about the people.
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References
Baeza, M. A., PhD., & Wang, Y. J., PhD. (2016). Developing organizational citizenship behavior
through job satisfaction and collectivistic cultural orientation: Evidence from
Mexico. Organization Development Journal, 34(4), 73-90. Retrieved from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1870225372?accountid=12085
Rothaermel, F. T. (2017). Strategic management concepts (Custom 3rd ed.) New York, NY:
McGraw-Hill.
