MO12: Research one business setback the company has had and evaluate using the model of decline stages how the company handled this setback.

In the past, most business organizations had an organizational design and structure that strongly resembled the military. Steep hierarchies, with a vertical structure, routine tasks, rigid culture, formal systems, and compliantly competitive structure fit the external environment of the times and safeguard their efficiency and effectiveness to operate profitably.

Over the past 40 years, the external environment for business organizations has drastically changed, among other factors, thanks to globalization, the availability of new technologies, and social factors.

Being exposed to these external changes existing business organizations are confronted with the dilemma if they should take these changes into our account in their respective organizational design and structure. Especially considering, that new market participants were profiting from a new organizational design and structure with a horizontal structure, empowered roles, adaptive culture, shared information, and collaborative competitive strategy.

Some examples of these successes of the new market participants are online travel booking platforms (Expedia, vs. traditional travel agencies, digital streaming services (Netflix, Amazon Video) vs. traditional entertainment companies, and finally the success of Elon Musk and Tesla Inc. in disrupting the traditional automotive industry.

  1. Using Porter’s competitive strategy and Miles & Snow’s strategy typology analyze the strategy of the business organization you have chosen. Please give an evaluation of how the respective strategy impacted the organizational design (vertical or horizontal) of the business organization.
  2. Examine the expansion strategy the business organization (globalization, multi-domestic, hybrid, export) has chosen and appraise if it has been beneficial. Which of the three motivations for global expansion covered in class explains best the company’s decision? Please discuss.
  3. Briefly identify the general and task environment for your chosen company and examine the respective degrees of environmental uncertainty. Based on your finding use the materials covered in class and recommend a strategy (internal and external) for the company to handle the environmental uncertainty.
  4. Research one business setback the company has had and evaluate using the model of decline stages how the company handled this setback.
  5. Contrast and compare vertical and horizontal sources of power in the company. Identify which one of the two plays a significant role in the organization and discuss if this has been beneficial to the company.