TAILIEUCHUNG - Ebook Managerial economics and organizational architecture (6th edition): Part 2

(BQ) Part 2 book "Managerial economics and organizational architecture" has contents: Organizational architecture, divisional performance evaluation, individual performance evaluation, incentive compensation, attracting and retaining qualified employees, corporate governance, vertical integration and outsourcing,.and other contents. | P A R T T H R E E Designing Organizational Architecture chapter 11 CHAPTER OUTLINE The Fundamental Problem Architecture of Markets Architecture within Firms Architectural Determinants Changing Architecture Interdependencies and Complementarities within the Organization Corporate Culture When Management Chooses an Inappropriate Architecture Managerial Implications Evaluating Management Advice Benchmarking Summary Organizational Architecture LEARNING OBJECTIVES 1. Describe the fundamental problem facing all organizations and how the architecture of markets differ from the architecture of firms. 2. List the three components of a firm’s organizational architecture. 3. Explain how a firm’s business environment and strategy help to determine its optimal organizational architecture. 4. Describe how the three components of an organization’s architecture are interrelated and why it is important to design them in a balanced (complementary) fashion. 5. Describe the role of corporate culture and its connection to organizational architecture. 6. Understand why, how, and when firms change their organizational architecture. F ounded in 1919, Brabantia is one of Europe’s largest manufacturers of household products such as ironing boards, waste bins, food storage canisters, kitchen tools, and mailboxes. Headquartered in the Netherlands with 1,000 employees and 2013 sales of about $150 million, the company specializes in steel and stainless steel utensils. Through the 1980s and 1990s Brabantia faced increased competition for its products. With the creation of a “single market” within the European Economic Union, other European companies entered Brabantia’s local markets. As Europe’s population growth slowed, the household utensil market became saturated. And large, mass-marketing retailers entered the European market driving out many of Brabantia’s traditional outlets—small household specialty Brabantia required new products and new channels .

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