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Corporate Strategy and Structure

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Pipy Chupachius Chris

on 11 June 2015

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Transcript of Corporate Strategy and Structure

Nguyễn Quỳnh Như
Nguyễn Phương Hồng Nhung
Nguyễn Trần Thanh Phương
Trần Thị Phượng
Group 1- A19
Hierarchical Structure
It is also called pyramidal structure.
One person or
a group of people
at the top.
An increasing number of people
below them at each successive level.
A chain of command running down
the pyramid.
Functional Structure
Divide a company into divisions in charge for different functions.
Divide the staffs into functional departments of each division.
Divisional Structure
Divide a company into divisions in charge for different products.
Divide the staffs into functional departments of each division.
Matrix Structure
Functional leaders are responsible for more than one area.
Employees report to their immediate manager and cross function leaders
In Vietnam, this structure is quite new and it is not popular because each department has to connect to each other.
It is often applied in Corporate groups or foreign companies.
This structure is quite popular. Each manager/vice manager will be responsibility for one area of company
Functional structure
This structure is suit for company that haves many range of products or works in many areas such as Toyota or Banks
Functional Structure
High level of specialization.
Each unit operates as a type of self-contained mini-company, charged with carrying out its specific role.
Efficiency and Productivity.
Lack of Teamwork
Difficult Management Control
Difficulty working well with other units.
In essence, each unit may act in what it perceives to be its own best interests instead of those of the organization as a whole.
Challenge for top management to maintain control as the organization expands.
Matrix Structure
Efficient Information Exchange
Increased Motivation
Departments work closely and communicate frequently to solve issues.
The specialized information exchange allows managers to respond quickly to the needs
Democratic leadership style.
Leading to employee's satisfaction and motivation.
Internal Complexity
Expensive to Maintain and Internal Conflict
Employees may become confused as to who their direct supervisor is.
Division among employees and managers.
A company's overhead cost typically increases because of the need for double management.
The sharing of employees may cause unhealthy competition between managers within a company
Divisional Structure
Focus upon a single product or service, with a leadership structure that supports its major strategic objectives.
More likely the division will receive the resources it needs from the company.
Common culture and esprit de corps.
Office politics instead of sound strategic thinking .
Hierarchical Structure
Clear authority
Managers have authority according to management level and have the power to allocate resources, reward and punish behavior and give orders to their subordinates.
Everyone understands the chain of command. The boss gives an order and can expect compliance.
Subordinates know whom to report to and where to get information and directives.
Coordination between its members.
Toyota Motor Corporation
Apple Inc.
Member are formed for a specific project/product or we can bring the right resources together for a projects.
Kentucky Fried Chicken
President of KFC
Mr. David Novak
Marketing department
Finance department

+ Mission:

- Maintain financial records.

- Payment of bills and expenses.

- Collection of accounts due.

- Payment of salaries.

- Provides information for managers and
decision-makers within business

Operation department
+ Role:

- Facilitate marketing department

- Study to identify most suitable methodology

- Participate in pre-discussion with clients.

Human resources department
+ Role:

- Describe the job + analyze the job => prospective vacancies

- Recruit

- Determine the salaries

- Conduct market surveys

Quality assurance department

- Test the new taste


+ Role:

- Show the marketing position

- Promote the products

- Provide competitors’ information

- Make the future plans

Poor Flexibility:
Hierarchical structures tend to adapt slowly to changing needs.
Organizations that cannot adapt to new market demands.
Organizational Disunity
Organizations pursue a goal as a unified team. The departmentalizing of specializations leads, in some cases, to decisions made to benefit a department rather than the organization goals.


I. Hierarchical structure
• Definition
• Advantages and disadvantages
• Example: Apple Corporation.

II. Functional structure
• Definition
• Advantages and disadvantages
• Example: Kentucky Fried Chicken

III. Divisional structure
• Definition
• Advantages and disadvantages o
• Example: Toyota Motor Corporation

IV. Matrix structure
• Definition
• Advantages and disadvantages of matrix structure
• Example: Unilever

V. Conclusion

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