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Strategy & StructureEnterprise Strategy/AW/10
Arj Wignaraja
Entrepreneurial Structure
Entrepreneur
Subordinates
Functional Structure
Board of Directors
Accounting & Finance Marketing Research &
DevelopmentManagement Information
Systems
Production Personnel
Product A Product B Product C
Divisional Structure
Head Office
Division 2 Division 3Division 1
Theory in Practice (TIP): Wal-Mart Hybrid Structure
CEO & Board
ASDA Stores Sam’s Club US Retail International Retail
Global E-
commerce
CAO CFO Corporate Affairs
Legal & Secretary
Merchandise & Replenishment
Global Customer Insights
Human Resources Sourcing
Theory in Practice (TIP): Starbucks Hybrid Structure
CEO & Board
Americas China & Asia Pacific EMEA Digital
CIO CFO & Admin Marketing Legal &
Secretary
Supply Chain Operations
Competitive Intelligence
Partner Resources
(HR)Public Affairs
Global Developmen
t
Channel Developmen
tStrategyGlobal
Coffee
Matrix Structure
Central Policy, e.g, Board of Directors
Product A
US
Europe
Product B Product C
Asia
= Key points of interaction
Theory in Practice (TIP): P&G Hybrid & Matrix Structure
CEO & Board
CFO
CIO & Global Svcs
Product Supply
CTO
Brand Building
Consumer & Mkt Knowledge
Customer Dev.
Design
External Relations
HRLegal &
SecretarialDiversity &
Services
Oper
atio
ns
Asia & Specialty Channel
NA & Global Hyper, Super, Mass Channel
Discounters & Pharmacy
EMEA
Latin America & Global Club
Greater China
Global Business Units
Wal-Mart
Grooming & Shave
Fabric Care
Baby Care
HomeCare
Duracell Braun Home
Care …
New Business Creation
Factors linking strategy with structure
Structure
People & skills
Strategic objectives
Environment
Available technolog
y
Future strategy
Diversity & Scope
3 Strategic Styles – How Corporate Centers Influence the Development of Business Strategy
Strategic Planning Financial ControlStrategic Control