Nissan Structure Type
|Answer the five questions below and they are to be in one paragraph per question. Only use the information from the article I included from the WSJ The attached file is a SAMPLE STUDY AND IT SHOULD LOOK JUST LIKE THE SAMPLE.|
Implementing Strategy: Creating Effective Organizational Designs
Successful organizations must ensure that they have the proper type of organizational structure. Furthermore, they must ensure that their firms incorporate the necessary integration and processes so that the internal and external boundaries of their firms are flexible and permeable. Such a need is increasingly important as the environments of firms become:
Although most organizations remain small or die, those that survive grow in four ways:
Diversity of products and services
Organizations usually evolve from a simple structure to a functional structure as a firm grows in terms of size and increases its level of vertical integration. After a firm expands into related products and services, its structure changes from a functional to a divisional form of organization. Finally, when the firm enters international markets, its structure again changes to accommodate the change in strategy.
There are four different types of organization structure:
Strategic business unit
In international markets, the three primary factors to take into account when determining the appropriate structure are
1.Type of international strategy
2. Product diversity
3. Dependence on foreign sales.
There is also something called the boundaryless organization. The concept of the boundaryless organization should not replace the traditional forms of organization structure. Rather, it should complement them. This is necessary to cope with the increasing complexity and change in the competitive environment.
There are three types of boundaryless organizations:
The barrier-free type focuses on the need for the internal and external boundaries of a firm to be more flexible and permeable.
The modular type emphasizes the strategic outsourcing of noncore activities.
The virtual type centers on the strategic benefits of alliances and the forming of network organizations.
The elements necessary to implement a boundaryless organization are:
Common culture and values
Horizontal organization structures
Horizontal systems and processes
Communications and information technologies
Human resource practices.
Please go to the Discussion Board and participate in the discussion for this session. (To get to the Discussion Board, click on the “Discussion Board” link on the left side of the screen.)
Resource Allocation or Strategy-Critical Activities
Explain two outsourcing examples: Something you personally outsource, and something a large company outsources. Explain the advantage of each in terms of the “modular organization” explanation in the textbook.
Here’s an example: I outsource the laundering of my dress shirts so I can focus my time where I have greater competitive advantage. The Cheesecake Factory outsources the care of the plants in the restaurant so it can tap into the knowledge of its suppliers.
Nissan Structure Case
Nissan Structure Case
1) From exhibit 10.1 Dominant growth patterns of large corporations, what structure type is Nissan using?
2)Which business level competitive advantage is Nissan seeking?
3)Nissan is failing at which value chain elements?
4)This article states Nissan’s move to independence or interdependence?
5)How has Nissan failed to be “ambidextrous?
Nissan Structure Type
Organizational structure refers to the formalized patterns that show linking interactions. Structure gives a means that is used to balance two conflicting factors which include; the need to integrate the grouping for efficiency and the need to divide tasks into meaningful groupings. Nissan is using a new three-person structure where the executives in charge of planning and execution which will work more closely together from the beginning to scope out any potential flaws. The organizational structure that Nissan is using is the division structure. This is because when a firm expands into related products and services, it often changes its structure to divisional structure from the functional structure
Business Level Competitive Advantage
Understanding the organizations structure determines what type of competitive advantage the firm can develop. Customers or clients are essential to any team and are critical to obtaining and sustaining competitive advantage. When a company can predict and satisfy the future customer needs, they gain competitive advantage. Nissan’s push into electric cars seems to change and improve the sales. The government is starting to support the technology with subsides and changing stations. The business level competitive advantage that Nissan is seeking is differentiation. Value is therefore provided to the customers through characteristics of an organization’s product and it unique features rather than the lowest price. Value differentiation is done through an advanced technological feature, efficient customer service, rapid product innovation, high-quality features and image management.
Value Chain Element
The value chain is a framework in which an organization can use to evaluate and identify the ways in which their resources add value. A complex chain of activities is involved in creating a good value for customers. The value analysis depends on the company’s ability to break the operations or activities into primary (such as marketing, sales, and services) as well as support (which includes human resources, staff activities and procurement). The value chain element that is failing is the support operation which is management. A range of problems at Nissan is blamed on poor execution and management. When an organization creates more value, it is likely to become more profitable. How a company creates value as well as add value are the critical elements in developing a competitive strategy.
Independence or Interdependence
Interdependence helps business owners to understand how different department rely on the performance of the others. The departments of an organization are given tasks to work together by structuring the respective work tasks. Each task given to each department should be managed with different coordination methods. Nissan is carving up areas of responsibility into more manageable pieces, by rearranging the management team.
Ambidextrous organization designs create units that have their unique processes, cultures, and structures that are mainly intended to support early stage innovation. Executive leadership can create a unit the organization that is specifically intended to develop breakthroughs in regards to innovations. Nissan is falling to be ambidextrous because it lacks a team that is behind innovations that will trend in the near future. Managers ought to balance contradictory structures, cultures and skills so as to enable them to be able to compete successful. Being ambidextrous means continuing to oversee the main business and at the same time protect the emerging venture as it evolves and grows.