Chapter 10Organisational Structure and Strategic Control.docx

Chapter 10
Organisational Structure
and Strategic Control
Prepared by Rajeev Sharma
Charles Darwin University
Learning objectives
Distinguish between the basic principles that determine the
structural characteristics of complex human organisations
Discuss the role and importance of structural building blocks
for structural arrangements
Examine the differences between mechanistic and organic
structural features
Distinguish between specialisation, coordination and
cooperation
Learning objectives
Apply principles of hierarchy in organisational design to
specific tasks and business environments
Illustrate and discuss types of organisational structure and their
strengths and weaknesses
Apply principles of organisational design
understand the role of information systems for coordination and
how these can be applied
Introduction
The design of organisational structure and management control
system is the key component of strategy implementation
The formulation of strategy should not be separated from its

implementation
It is widely accepted now that ‘organisation structure should
follow strategy’
Refer to page 317
system is the key component of strategy implementation.
Hence, the view of strategy formulation and strategy
implementation as a sequential process is summed up in the
adage ‘structure follows strategy’.
Having established that how companies organise themselves is
fundamental to their strategy and their performance, the goal of
this chapter is to introduce the key concepts and ideas necessary
to understand and design companies’ structures and systems, as
well as possible changes to them
4
Principles of organisational design
The modern organisational design should incorporate key design
principles or building blocks
It is widely acknowledged that modern organisation has evolved
from a purely functional to a highly adaptable design
Modern organisations have emerged from two key influences:
Line and staff structure
Multidivisional corporations
Refer to page 317
Before considering organisational design issues, it is important
to discuss the key principles including the notion of line and
staff

It is important to acknowledge the history of organisational
design development. Work of Alfred Candler is worth
consideration here
5
line and staff structure
Historically, most organisations were small and operated from
a single plant or office.
With advancement in transportation and communication,
organisations commenced operating over a wider area
These geographically dispersed units were managed by an
administrative headquarter.
This organisational form was known as line and staff structure
Refer to page 318
Discuss the evolution of geographically dispersed organisation
and how they led to the creation of line and staff structure. Also
highlight the features of this structure including the fact that
employees were either line, allocated to operational tasks within
the operating units, or staff, administrators and functional
specialists located at head office
6
Companies and markets
The business corporation is one of the greatest innovation of
modern civilisation
Most of the modern world’s production of goods and services is
undertaken by corporations — enterprises with a legal identity
that is distinct from the individuals that own the enterprise
In the capitalist economy, production is organised in two ways:
in markets — by the price mechanism — and in companies —
by managerial hierarchical direction

Refer to page 318
that is distinct from the individuals that own the enterprise.
The main exceptions include agriculture and crafts in the
developing world, where family-based production predominates,
and services such as defence, policing and education that are
usually provided by government organisations.
by managerial hierarchical direction. The relative roles of
companies and markets are determined by efficiency and
transactions will tend to be organised within companies rather
than across markets
7
Building blocks of structure
Fig. 10.1
Refer to page 319
Discuss the role of flexibility and responsiveness to modern
organisations and how coordination is essential.
Use examples from the text and from other sources
8
Mechanistic and organic forms
Table 10.1
Refer to page 319
Explain and contrasts key characteristics of the two forms by
considering various features of the two forms listed above
During the 1950s and 1960s, the human relations school

recognised that cooperation and coordination within
organisations was about social relationships as well as
bureaucratic principles. Refer to study of Scottish engineering
companies by Burns and Stalker that identified two
organisational forms: mechanistic forms, characterised by
bureaucracy, and organic forms that were less formal, in which
coordination relied on mutual adjustment and interaction was
more flexible.
The discussion should extend to table 10.2 to include the notion
of communities of practice and other organisational forms
9
Specialisation and the division of labour
The fundamental source of efficiency in production is
specialisation, especially the division of labour into separate
tasks
The more a production process is divided between different
specialists, the greater are the costs of coordination.
The more volatile and unstable the external environment, the
greater the number of decisions that need to be made and the
higher are these coordination costs
Refer to page 324
Henry Ford experienced huge productivity gains by installing
moving assembly lines and assigning individuals to highly
specific production tasks. Between the end of 1912 and early
1914, the time taken to assemble a Model T fell from 106 hours
to just over 6 hours.
However specialisation comes at a cost.

10
The coordination problem
No matter how great the specialist skills possessed by
individuals, unless these individuals can coordinate their
efforts, production can not occur
Four different coordination mechanisms are common:
Price
Rules and directives
Mutual adjustment
Routines
Refer to page 325
efforts, production can not occur.
Consider the operation of four different coordination
mechanisms:
• Price. In the market, coordination is achieved through the
price mechanism. Price mechanisms also exist within
companies.
• Rules and directives. Unlike self-employed workers, who
negotiate market contracts for individual tasks, employees enter
general employment contracts where they agree to perform a
range of duties as required by their employer. Authority is
exercised by means of general rules and specific directives.
• Mutual adjustment. The simplest form of coordination
involves the mutual adjustment of individuals engaged in
related tasks. Such mutual adjustment occurs in all teams and
work groups where there is no formal leader.
• Routines. Where activities are performed recurrently,

coordination based on mutual adjustment and rules becomes
institutionalised within organisational routines. These regular
and predictable sequences of coordinated actions by individual
workers are the foundation of organisational capability
11
The cooperation problem
Cooperation problem refers to the problem of different
organisational members having conflicting goals
Several mechanisms exist for achieving goal alignment within
organisations:
Control mechanisms
Financial incentives
Shared values
Refer to page 325
The existence of different organisational members having
conflicting goals creates cooperation problem
This can be addressed through different mechanisms including:
Control mechanisms typically operate on the basis of managers
supervising groups of subordinates using both positive and
negative incentives. Positive incentives are typically the reward
of promotion up the hierarchy in return for compliance;
negative incentives are dismissal and demotion for failing to
acquiesce to rules and directives.
• Financial incentives are designed to reward performance. Such
incentives extend from piece-rates for production workers to
share options and profit bonuses for executives.
• Shared values are the commonality of goals between
organisational members. Examples are Wal-Mart, Coles Group,
Amway, and the Shell Group, which all show the presence of
shared values and principles that encourages the alignment of
individual and corporate goals without necessarily undermining
the individuality of organisational members.

12
Hierarchy in organisational design
The traditional approach to large-scale organisation has been to
create hierarchy
Hierarchical structures are essential for creating efficient and
flexible coordination in complex organisations
The critical issue is not whether to organise by hierarchy — but
how the hierarchy should be structured and how the different
parts of it should relate to one another
Refer to page 327
create hierarchy.
Despite the negative associations that currently attach to
hierarchy, it is possible to argue that hierarchical structures are
essential for creating efficient and flexible coordination in
complex organisations.
The critical issue is not whether to organise by hierarchy —
there are very few, if any, alternatives — but how the hierarchy
should be structured and how the different parts of it should
relate to one another.
13
Hierarchy as coordination: modularity
A hierarchy is defined as a system composed of interrelated
subsystems
There are two key advantages to hierarchical structures:
Economising on coordination
Adaptability

Refer to page 327
subsystems.
Examples of hierarchy include:
• the human body, which is composed of a hierarchy of cells,
organs and subsystems.
• physical systems, which are composed at the macro level of
planets, stars and galaxies, and at the micro level of subatomic
particles, atoms and molecules.
• social systems, which consist of individuals, families,
communities, tribes or socioeconomic groups and nations.
• a book, which consists of letters, words, sentences, paragraphs
and chapters
It is useful to also discuss the advantages of hierarchy
including:
Economising on coordination. As noted earlier, the gains from
specialisation come at the cost of coordination. As an
organisation increases in size and complexity, so the
communication-economising benefits of hierarchically arranged
modules increase.
Adaptability. Hierarchical, modular systems are able to evolve
more rapidly than unitary systems that are not organised into
subsystems. Such adaptability requires some degree of
decomposability: the ability of each component subsystem to
operate with some measure of independence from the other
subsystems
14
Hierarchy as a control: bureaucracy
It has been shown that hierarchy is an efficient solution to the
problem of coordination in organising complex tasks.

To the extent that hierarchy is also a device for exercising
control, it is also one solution to the problem of cooperation in
organisations.
Administrative hierarchies operate as bureaucracies
Refer to page 328
It is important to discuss how hierarchy and bureaucracy are
linked
Also to discuss the underlying principles proposed by Weber
15
Rethinking hierarchy
Hierarchical organisations generally add layers as they get
bigger
If the hierarchy is run as a bureaucracy with centralised power,
growth implies an increasing ratio of managers to operatives,
slower decision making and increased loss of control
In a fast-paced business environment, the slow movement of
information up the hierarchy and decisions down the hierarchy
can be fatal
Refer to page 329
It is helpful to consider some of the recent research on
hierarchy including:
Hierarchical organisations add layers as they get bigger.
slower decision making and increased loss of control.
can be fatal.
So long as there are benefits from the division of labour,

hierarchy is inevitable.
The critical issue is to reorganise hierarchies in order to
increase responsiveness to external change.
The trend towards decentralisation has not been one way. Some
companies engage in decentralisation followed by a phase of
centralisation
16
Types of structure in focus
Four common organisational forms include:
The simple structure
The functional structure
The multidivisional structure
The matrix structure
Refer to page 331
Provide an overview of the four organisational forms
17
It is a structure with a minimum level of division of labour
Decision making is largely centralised in the hands of a single
person, usually the founder, with very little formalisation
The major advantage of a simple structure is its flexibility and
adaptability
A major weakness of the simple structure is the lack of
consistency and sustainability

Refer to page 331 and figure 10.4 and table 10.3
It is a structure with a minimum level of division of labour.
person, usually the founder, with very little formalisation.
adaptability.
The simple structure’s major weakness is a possible lack of
consistency and sustainability.
The organisation’s entire operations may be over-dependent on
a single person, usually the founder
18
Single-business organisations often tend to be organised along
functional lines
Grouping together functionally similar tasks is conducive to
exploiting scale economies, promoting learning and capability
building, and deploying standardised control systems
Different functional departments however develop their own
goals, values, vocabularies and behavioural norms, which make
cross-functional integration difficult
Refer to page 332 and figure 10.5 and table 10.4
Grouping together functionally similar tasks is conducive to
exploiting scale economies, promoting learning and capability
building, and deploying standardised control systems.
Since cross-functional integration occurs at the top of the

organisation, functional structures are conducive to a high
degree of centralised control by the CEO and top management
team.
Different functional departments develop their own goals,
values, vocabularies and behavioural norms, which make cross-
functional integration difficult.
As the size of the company increases, the pressure on top
management to achieve effective integration increases. Because
the different functions of the company tend to be tightly
coupled rather than loosely coupled, there is limited scope for
decentralisation.
19
It is a structure that permits decentralised decision making
where business-level strategies and operating decisions are
made at the divisional level
The multidivisional structure is an example of a loose-coupled,
modular organisation where business-level strategies and
operating decisions can be made at the divisional level, while
the corporate headquarters concentrates on corporate planning,
budgeting and providing common services
Refer to page 334, figure 10.7 and table 10.5
Discuss the features of this form including:
The key advantage of divisionalised structures is the potential
for decentralised decision making.
The multidivisional structure is the classic example of a loose-
coupled, modular organisation where business-level strategies
and operating decisions can be made at the divisional level,
while the corporate headquarters concentrates on corporate

planning, budgeting and providing common services.
The large, divisionalised corporation is typically organised into
three levels: the corporate centre, the divisions and individual
business units, each representing a distinct business for which
financial accounts can be drawn up and strategies formulated
20
Matrix structures
Organisational structures that formalise coordination and
control across multiple dimensions are called matrix structures
Organisations that require a high level of innovation are more
likely to benefit by adopting a matrix structure
The problem of the matrix organisation is over-formalised and
excessive corporate staffs and over-complex systems that tend
to slow decision making and dull entrepreneurial initiative
Refer to page 336 figure 10.8 and table 10.6
Organisational structures that formalise coordination and
control across multiple dimensions are called matrix structures.
It is thought that perhaps organisations that require a high level
of innovation will benefit most by adopting a matrix structure.
The current trend is that the matrix structure is used carefully
and discretionally.
The problem of the matrix organisation is not that it attempts to
coordinate across multiple dimensions - in complex
organisations such coordination is essential - but that this
multiple coordination is over-formalised, resulting in excessive
corporate staffs and over-complex systems that slow decision
making and dull entrepreneurial initiative
21

Applying the principles of organisational
design
A fundamental problem of organisational design is reconciling
specialisation with coordination and cooperation
Two key issues are:
On what basis should specialised units be defined?
How should decision-making authority be allocated?
Refer to page 338
Introduce the problem of reconciliation driven by two
competing forces of specialisation and coordination
Use relevant examples
22
Defining organisational units
Some of the principal bases for grouping employees are:
Tasks
Products
Geography
Process
Refer to page 338
Discuss the four commonly used bases of grouping employees
in organisations including:
Tasks. Organisational units can be created around common
tasks. This usually means grouping together employees who do
the same job.

Products. Where a company offers multiple products, these can
provide a basis for structure. In a department store, departments
are defined by products: kitchen goods, bedding, lingerie and so
on.
Geography. Where a company serves multiple local markets,
organisational units can be defined around these localities.
Process. A process is a sequence of interlinked activities. An
organisation may be viewed as a set of processes: the product
development process, the manufacturing process, the sales and
distribution process and so on. A process may correspond
closely with an individual product, or a process may be
dominated by a single task
23
Organising on the basis of coordination
intensity
How do organisations decide whether to use task, product,
geography or process to define organisational units?
The fundamental issue is achieving the coordination necessary
to integrate the efforts of different individuals
This implies grouping individuals according to the intensity of
their coordination needs
Those individuals whose tasks require the most intensive
coordination should work within the same organisational unit
Refer to page 338
The fundamental issue is achieving the coordination necessary
to integrate the efforts of different individuals.
This implies grouping individuals according to the intensity of
their coordination needs.

Those individuals whose tasks require the most intensive
coordination should work within the same organisational unit
24
Other factors influencing the definition
of organisational units
Factors, other than employees and activities that influence the
definition of organisational units are:
Economies of scale
Economies of utilisation
Learning
Standardisation of control systems
Refer to page 339
Consider and explain other factors that may influence the
definition of an organisational unit including:
Economies of scale. It may be desirable to group together
activities even if there is little coordination among different
projects, simply to exploit scale economies in specialised
facilities and technical personnel.
Economies of utilisation. It may also be possible to exploit
efficiencies from grouping together similar activities that result
from fuller utilisation of employees.
Learning. If establishing competitive advantage requires
building distinctive capabilities, companies must be structured
to maximise learning. Typically, it was assumed that learning
was best achieved by grouping together individuals doing

similar jobs. More recently, it has been observed that the
specialised functional and discipline-based knowledge may be
less important than architectural knowledge — knowing how to
link together specialised knowledge from different fields.
Standardisation of control systems. Tasks may be grouped
together to achieve economies in standardised control
mechanisms
25
Contemporary organisational structures
There have been major changes in the way organisational
hierarchies are now organised. Some of the new structures
include:
Adhocracies
Team-based and project-based organisations
Networks
Refer to page 340 and strategy capsule 10.2
Adhocracies. These organisations feature flexible, spontaneous
coordination and collaboration around problem solving and
other non-routine activities.
Team-based and project-based organisations. Flexibility and
adaptability can also be achieved in project-based organisations
— common in sectors such as construction, consulting, oil
exploration and engineering services — where business takes
the form of projects of limited duration.
Networks. Highly specialised companies that coordinate to
design and produce complex products. Often these networks
feature a central firm that acts as a ‘systems integrator’. In the
developing world, such networks can be a viable alternative to
industrial development where large enterprises are lacking

26
Management systems for coordination
and control
Management systems provide the mechanisms of
communication, decision making and control that allow
companies to solve the problems of achieving both coordination
and cooperation. Three key areas addressed are:
Performance
Culture
Strategic planning and finance
Refer to page 342 and figure 10.9
It is important to explain the relationship between management
systems and organisational structure.
27
Strategic planning systems
Fig. 10.10
Refer to page 345 and provide details of the strategic planning
system
Most large companies have a regular (normally annual) strategic
planning process.
For a multi-business company, the strategic planning process
creates business plans for the individual divisions that are then
integrated into a corporate plan.
Whether formal or informal, systematic or ad hoc, documented
or not, the strategy formulation process is an important vehicle
for achieving coordination within a company.
The system through which strategy is formulated varies

considerably from company to company but the figure here
shows a typical strategic planning cycle
28
Financial planning and control systems
Finance is a critical resources for all organisations
Financial systems are a key mechanism to exercise control
At the centre of financial planning is the budgetary process
Two types of budgets should be well understood:
Capital expenditure budget
Operational budget
Refer to page 347
Describe the importance of financial details to organisational
planning and control inlcluding two types of budgets:
Capital expenditure and operational
The capital expenditure budget
Is established through both top–down and bottom–up processes.
Companies have standardised processes for evaluating and
approving projects.
Requests for funding are prepared according to a standardised
methodology, typically based on a forecast of cash flows
discounted at the relevant cost of capital (adjusted for project
risk).
The operating budget
The operating budget is a pro forma profit and loss statement
for the company as a whole and for individual divisions and
business units for the upcoming year.
It is usually divided into quarters and months to permit
continual monitoring and the early identification of variances.
Each business typically prepares an operating budget for the
following year that is then discussed with the top management

committee and, if acceptable, approved.
At the end of the financial year, business-level divisional
managers are called upon to account for the performance over
the past year
29
Organisational restructuring
Changes are often painful to many employees as they can
involve job losses, pay cuts and more work
Organisations should restructure to align with the changes
The restructuring plan should identify appropriate staff to
achieve the objectives of restructuring
Organisational restructure should involve new organisational
culture that is well communicated to all employees
Refer to page 349
Organisational restructure is becoming a key component of
strategic adjustment
One should understand how this is implemented with least
resistance
Instructors should use strategy capsule 10.4 to provide an
illustration of what mangers can learn from the change
management of an organisation
30
Summary
This session has dealt with various aspects of organisational
structure and control
Some of the key issues to recall are that:
strategy implementation is inseparable from strategy
formulation
organisational structure and systems are central to the
fundamental issues of competitive advantage and strategy
choice
effective management systems for coordination and control are

important
31
MGT330 - Business Strategy
Table of Contents
Subject Summary
...............................................................................................
....................2
Subject Coordinator
...............................................................................................
................2
Subject Coordinator
...............................................................................................
...2
Email
...............................................................................................
...........................2
Phone
...............................................................................................
..........................2

Consultation procedures
..........................................................................................2
Subject
Overview................................................................................
....................................2
Abstract
...............................................................................................
.......................2
Learning
outcomes.................................................................................
...................3
Subject content
...............................................................................................
..........3
Key
subjects...................................................................................
............................3
Assumed knowledge
...............................................................................................
..4
Subject Schedule & Delivery
...............................................................................................
...4
Prescribed
text.........................................................................................
..................4
Class/tutorial times and location
.............................................................................4
Schedule
...............................................................................................
.....................5
Learning
materials.................................................................................
....................6

Learning, teaching and support strategies
..............................................................6
Recommended student time commitment
.............................................................9
Assessment Items
...............................................................................................
....................9
Essential requirements to pass this
subject.............................................................9
Items
...............................................................................................
.........................10
Online
Test........................................................................................
..........10
Strategic Analysis Report
...........................................................................12
Strategic Evaluation and Implementation
Report....................................15
Assessment Information
...............................................................................................
.......19
Academic integrity
........................................................................................... ....
...19
Referencing.............................................................................
.................................19
How to submit your assessment items
..................................................................19
Online submission
process........................................................................19
Postal submission process

........................................................................20
Hand delivered submission process
.........................................................20
Alternative submission process
................................................................20
Extensions...............................................................................
.................................20
How to apply for special
consideration..................................................................21
Penalties for late
submission..............................................................................
....21
Resubmission
...............................................................................................
...........21
Feedback processes
...............................................................................................
.21
Assessment
return......................................................................................
.............22
Student Feedback & Learning Analytics
..............................................................................22
Evaluation of subjects
.............................................................................................2
2
Charles Sturt University Subject Outline
MGT330 201960 S I
Version 1 - Published 14 June 2019
Page 1 of 23

Changes and actions based on student feedback
.................................................22
Learning analytics
...............................................................................................
....22
Services & Support
...............................................................................................
................22
Develop your study skills
........................................................................................23
Library Services
...............................................................................................
........23
CSU Policies &
Regulations.............................................................................
......................23
Subject Outline as a reference
document..............................................................23
Subject Summary
MGT330 - Business Strategy
Session 2 2019
Faculty of Business, Justice and Behavioural Sciences
School of Management and Marketing
Internal Mode
Credit Points 8
Welcome to a new session of study at Charles Sturt University.
Please refer to the University's
Acknowledgement of Country
(http://student.csu.edu.au/study/acknowledgement-of-
country).

Subject Coordinator
Subject Coordinator Mr Gana Pathmanathan
Email [email protected]
Phone 02 9291 9349
Consultation procedures
Any questions concerning the teaching of this subject can be
made by contacting me, your
lecturer, as below.
My name : Gana Pathmanathan
My email : [email protected] (mailto:%[email protected])
Email is the best option. Please send a brief message regarding
the issue and include the
subject name and subject code in your email. If your query is
urgent then meet with the
subject coordinator
Subject Overview
Abstract
This is a capstone subject. Successful completion of the
assignments will require that students
MGT330 201960 S I
Page 2 of 23

http://student.csu.edu.au/study/acknowledgement-of-country
http://student.csu.edu.au/study/acknowledgement-of-country
mailto:%[email protected]
draw on material and concepts studied in prior subjects. The
subject focuses on the strategic
planning function in an organisation. There is consideration of
the audit of the organisation's
internal resources and of the external factors which impact upon
strategic decision making.
The formulation of strategic alternatives which mesh with the
organisations current
environment and then selection of the most effective are also
examined. The implementation
of strategic plans and their evaluation is the final section.
Learning outcomes
Upon successful completion of this subject, students should:
• be able to identify and examine underlying assumptions that
underpin strategic
management;
• be able to apply and critically analyse strategic management
concepts and models;
• be able to reflect on learning, and integrate prior knowledge
and skills, to develop
strategic recommendations; and
• be able to evaluate alternative courses of strategic action to
justify choices of select/
implement/monitor strategies for organisations.

Subject content
This subject will cover the following topics:
1. Strategy: concepts and perspectives
2. Goals, values and performance
3. Industry analysis
4. Analysing resources and capabilities
5. The nature and sources of competitive advantage
6. Business-level strategies
7. Corporate-level strategies
8. Network, partnerships and alliances
9. Global strategies and the multinational corporation
10. Organisational Structure and strategic control
11. Strategy Evaluation
Key subjects
Passing a key subject is one of the indicators of satisfactory
academic progress through your
course. You must pass the key subjects in your course at no
more than two attempts. The first
time you fail a key subject you will be at risk of exclusion; if
you fail a second time you will be

MGT330 201960 S I
Page 3 of 23
excluded from the course.
The Academic Progress Policy
(https://policy.csu.edu.au/view.current.php?id=00250) sets out
the requirements and procedures for satisfactory academic
progress, for the exclusion of
students who fail to progress satisfactorily and for the
termination of enrolment for students
who fail to complete in the maximum allowed time.
Assumed knowledge
MGT100 or MGT210.
This subject brings together many aspects of the various
discipline based studies. It is
recommended that this subject is studied towards the end of
your course.
Subject Schedule & Delivery
Prescribed text
The textbooks required for each of your enrolled subjects can
also be found via the Student
Portal Textbooks (http://student.csu.edu.au/study/study-
essentials/textbooks) page.
Grant, R., Butler, B., Orr, S & Murray, P. (2014). Contemporary
Strategic Management: An

Australasian perspective (2nd ed.). Milton, Qld.: John Wiley
and Son Australia. ISBN
9781118362556
This textbook is available in hardcopy and e-book versions.
Hard copies can be purchased
through the University Co-op Bookshop; e-book versions are
only available from the Wiley
Australia website. Students must have access to a copy of the
prescribed textbook.
Class/tutorial times and location
Your class times can be found at Timetable @ CSU
(http://timetable.csu.edu.au/). Find out
how to use Timetable @ CSU via the Student Portal Class
Timetable
(http://student.csu.edu.au/study/study-essentials/timetable)
page.
MGT330 201960 S I
Page 4 of 23
https://policy.csu.edu.au/view.current.php?id=00250
http://student.csu.edu.au/study/study-essentials/textbooks
http://timetable.csu.edu.au/
http://student.csu.edu.au/study/study-essentials/timetable
http://student.csu.edu.au/study/study-essentials/timetable
Schedule

Session
Week
Week
Commencing Topics
Learning
Activities Due Dates
1 15/07 Strategy: Concepts andPerspectives
Chapter 1;
Module
Topic 1
2 22/07 Goals, Values andPerformance
Chapter 3;
Module
Topic 2
3 29/07 Industry Analysis
Chapter 4;
Module
Topic 3
Assessment 1 due -
Thursday 1 August
2019
4 05/08 Analysing Resourcesand Capabilities
Chapter 5;
Module
Topic 4

Census date - last day
to withdraw - Friday 9
August 2019
5 12/08
The Nature and Sources
of Competitive
Advantage
Chapter 6;
Module
Topic 5
6 19/08 Business-LevelStrategies
Chapter 7;
Module
Topic 6
7 26/08 Mid-Session Break
8 02/09 Mid-Session Break
Assessment 2 due -
Thursday 5 September
2019
9 09/09 Corporate-LevelStrategies
Chapter 8;
Module
Topic 7
10 16/09 Networks, Partnershipsand Alliances
Chapter 9;
Module

Topic 8
11 23/09
Global Strategies and
the Multinational
Corporation
Chapter 11;
Module
Topic 9
12 30/09
Organisational
Structure and Strategy
Control
Chapter 10;
Module
Topic 10
MGT330 201960 S I
Page 5 of 23
Session
Week
Week
Commencing Topics
Learning
Activities Due Dates

13 07/10 Strategy Evaluation
Chapter 12;
Module
Topic 11
14 14/10 Revision Assessment 3 due -Friday 18 October 2019
Learning materials
Details of learning materials that support your success in this
subject can be found in the
Interact2 Subject Site.
Learning, teaching and support strategies
You should check the Interact2 Site at least weekly for postings,
announcements, topic
information and other resources that will assist your studies or
additional information and
resources vital to your success in the subject.
All of your subject materials are available on the Interact site
under the Topics and
Resources links in the left hand side menu. I suggest that for
each topic you read the learning
objectives carefully, read the overview, have a quick skim of
the text and any readings
provided. The Topics for this subject have been written
specifically to guide you through the
sections (and questions) of the prescribed textbook relevant to
each topic.
In this subject there are also lots of opportunities for you to
engage with me, with your peers
and with the subject.

Studying at university does not mean studying alone. Take
advantage of collective wisdom in
class.
Use the subject schedule to plan your studies over the session.
Don't forget I am here to help - so contact me if you have any
worries or chat with your peers
on the discussion board and help each other too.
Academic learning support
Information on effective time management is available on the
CSU Learning Support website
via the following link: http://student.csu.edu.au/
Visit the learning support website for advice about assignment
preparation, academic reading
and note-taking, referencing, and preparing for exams at:
http://student.csu.edu.au/study
The Study Centres also offers a range of workshops specifically
targeting your needs as an
international student. These workshops run multiple times per
week and build into the
comprehensive Academic Skills Development Program that you
should participate in.
Additionally, a number of student volunteers are available to
assist you in a program known as
MGT330 201960 S I
Page 6 of 23

http://student.csu.edu.au/
http://student.csu.edu.au/study
Discipline Support Sessions. Please see the timetables for these
programs on the noticeboards
on campus and also via the iLearn Interact2 Organisation site.
You may also contact:
• Elaine Rodrigues
Study Support Manager
Phone: 02 8055 3413
E-mail: [email protected] (mailto:[email protected])
• Mazin Yousif
Senior Study Support Coordinator
Phone: 02 9291 9361
E-mail: [email protected]
• Miranda Alagich
Study Support Coordinator
Phone: 02 9291 9360
E-mail: [email protected] (mailto:[email protected])
For appointments, please see Reception.
Queries regarding the content of this subject should be directed
to your Subject Lecturer.
Library services
The Library is located on campus as well online. Your campus
Library
(http://www.csustudycentres.edu.au/about-csu-study-
centres/academic-support/

student-library) will support your learning journey by providing
the following:
• A Self-Check kiosk for borrowing books: no more queues!
• Library orientation, database searching and information
literacy workshops run
during the semester
• Computer terminals to conduct online research and complete
written work
• Photocopiers, scanners and printers
• State of the art study and research facilities
• Access to all subject texts including reserve copies for 2 hour
loan
• Qualified Information professionals to assist with all your
information needs.
• And for loan renewals and making requests, check your
StudyGroup Library account
by accessing the StudyGroup Library catalogue (http://sga-
primo.hosted.exlibrisgroup.com/primo_library/libweb/action/
search.do?vid=SGA)
Check with your Campus Library for opening hours and visit
Library News for updates on
Interact2
(https://idp.csu.edu.au/idp/profile/SAML2/Redirect/SSO?execut
ion=e3s1).
CSU Library
For 24/7 access, go to CSU Library online
(https://library.csu.edu.au/)http://student.csu.edu.au/library
MGT330 201960 S I

Page 7 of 23
mailto:[email protected]
http://www.csustudycentres.edu.au/about-csu-study-
centres/academic-support/student-library
http://sga-
primo.hosted.exlibrisgroup.com/primo_library/libweb/action/sea
rch.do?vid=SGA
http://sga-
rch.do?vid=SGA
http://sga-
rch.do?vid=SGA
https://idp.csu.edu.au/idp/profile/SAML2/Redirect/SSO?executi
on=e3s1
https://library.csu.edu.au/
https://library.csu.edu.au/
The CSU Library provides access to online resources. These
are:
• Peer-reviewed journal articles
• eBooks
• Company and government reports
• eJournals
• Dissertations & theses
• Newspapers including Business & Financial newspapers in

Factiva (see Business & IT
Journal databases)
• Other Reference resources (eg. Australian Bureau of Statistics,
Australian standards,
online encyclopaedias & dictionaries to be read on the computer
• Online assistance via free call on 1800 808 369, or ‘Ask a
Librarian’ - Live Chat or Web
Form.
Other CSU Library services and resources:
https://student.csu.edu.au/library/study-research
• Video tutorials in research skills, finding journal articles for
assignments, topic
analysis
• Endnote referencing software
• Other online library services to help you successfully
complete your assignments
Online Tutorials
http://student.csu.edu.au/library/study-research/training-
tutorials-videos
Learn how to:
• Use Primo Search to find eReserve study materials and journal
articles
• Search journal databases and web resources for information

for your assessment
tasks
• Identify appropriate sources of information and peer reviewed
material, to evaluate
resources
Subject Library Resource Guides
http://libguides.csu.edu.au/
Subject Library Guides are a great way to get started with
research. Each online guide is
tailored to a specific area of study, including Accounting,
Business and Information
Technology outlining how to research in your area and where to
look for information.
Library Help
http://student.csu.edu.au/library/help-contacts
Friendly and quick assistance is available. Ask for help finding
information and navigating the
library’s extensive eResources.
MGT330 201960 S I
Page 8 of 23
https://student.csu.edu.au/library/study-research
http://student.csu.edu.au/library/study-research/training-
tutorials-videos
http://libguides.csu.edu.au/

http://student.csu.edu.au/library/help-contacts
National Library of Australia - Trove database
http://trove.nla.gov.au/
The Trove database from the National Library of Australia
provides access to many different
online resources on any subject.
University of Technology Sydney - Blake Library
http://find.lib.uts.edu.au/
All students with a CSU student card can access University of
Technology, Sydney (UTS) library
for free 10 times per year or paying $50 per year to join CAUL
scheme to borrow books and use
the UTS library within the guidelines set down by UTS. Access
restrictions may be in place
during exam periods. The UTS Blake library is located near
Chinatown: corner Quay Street &
Ultimo Road, Haymarket. Phone: 02 9514 3666.
Contact Details below for any student enquiries:
CSU Study Centre Darlinghurst Library
Ms Mireille Eid
Library Manager
Phone: 02 9291 9326
Email: [email protected] (mailto:[email protected])
Ms Angie Baho
Library Officer

Phone: 02 9291 9315
Email: [email protected] (mailto:[email protected])m
Recommended student time commitment
This subject is an 8 point subject. The CSU Subject Policy
states that a standard 8 point subject
should require you to spend up to 160 hours engaged in the
learning and teaching activities.
These activities include the time spent in preparation for
assessment, including study for
examinations, tests, and assignment preparation.
Assessment Items
Essential requirements to pass this subject
There is no examination in this subject. There are three
assessment tasks.
You must obtain a total mark of at least 50% in order to pass
this subject.
To be eligible for the grade AA you must have submitted all
assessment items in the subject. If
you choose not to complete an assessment item and receive an
overall mark between 45 and
49 then you will not be granted an AA.
MGT330 201960 S I
Page 9 of 23
http://trove.nla.gov.au/

http://find.lib.uts.edu.au/
Items
Item
No. Title Value Due Date*
Return
Date**
1 Online Test 10% 01-Aug-2019 23-Aug-2019
2 Strategic Analysis Report 40% 05-Sep-2019 26-Sep-2019
3 Strategic Evaluation and ImplementationReport 50% 18-Oct-
2019 11-Nov-2019
* Due date is the last date for assessment items to be received at
the University
** Applies only to assessment items submitted by the due date
Assessment item 1
Online Test
Value: 10%
Due Date: 01-Aug-2019
Return Date: 23-Aug-2019
Submission method options: Interact2 Test
Task
Multiple choice test is based on Topic 1: Strategy: Concepts and

Perspectives and Topic 2:
Goals, Values and Performance.
The online test will be available on Interact2 from 29th July to
1st August 2019. This multiple
choice test is designed to encourage early engagement of this
subject and a revision of the
basis of strategic management as understanding these is
necessary for Assignment 2.
There are 10 questions that you need to finish in 30 minutes.
You can only attempt the test once.
Individual feedback and solutions of this test will be available
by clicking the same link after the
test closes on 1st August 2019.
Please note that as the test system closes automatically on
midnight 1st August 2019, no
extension would be granted for this assignment.
Rationale
This assessment task will assess the following learning
outcome/s:
• be able to identify and examine underlying assumptions that
underpin strategic
management.
This multiple choice test is designed to:
MGT330 201960 S I

Page 10 of 23
• encourage early engagement of this subject;
• build a theoretical base for Assignment 2.
Marking criteria and standards
MGT330 Business Strategy Assessment 1
Criteria HD DI CR PS FL
Multiple
choice
question
(10 marks)
You will be
required to:
answer
multiple
choice
questions by
selecting the
best option
from four
available
choices to
demonstrate
your
understanding
of: Topic 1 and

Topic 2.
To meet this
level you will
attain a
cumulative
mark between
85%-100% for
this
assessment.
A mark in this
range
indicates that
you have
selected the
best answer
option from
four available
choices for
each question
with no more
than 1
incorrect
answer in this
component of
the
assessment.
Overall, in
meeting this
level you will
demonstrate
an exceptional
and a
consistently

high level of
knowledge
and
understanding
in Topic 1 and
Topic 2.
To meet this
level you will
attain a
cumulative
mark between
75%-84% for
this
assessment.
A mark in this
range indicates
that you have
selected the
best answer
option from
four available
choices for
each question
with 2
incorrect
answers in this
component of
the
assessment.
Overall, in
meeting this
level you will
demonstrate a

comprehensive
and high level
of knowledge
and
understanding
in Topic 1 and
Topic 2.
To meet this
level you will
attain a
cumulative
mark between
65% - 74% for
this
assessment.
A mark in this
range
indicates that
you have
selected the
best answer
option from
four available
choices for
each question
with 3
incorrect
answers in
this
component of
the
assessment.
Overall, in

meeting this
level you will
demonstrate a
sound
knowledge
and
understanding
in Topic 1 and
Topic 2.
To meet this
level you will
attain a
cumulative
mark between
50%-64% for
this
assessment.
A mark in this
range
indicates that
you have
selected the
best answer
option from
four available
choices for
each question
with no more
than 4 or 5
incorrect
answers in
this
component of
the

assessment.
Overall, in
meeting this
level you will
demonstrate a
basic
knowledge
and
understanding
in Topic 1 and
Topic 2.
At this level
you will attain
a cumulative
mark between
0%-49% for
this
assessment.
A mark in this
range
indicates that
you have
selected the
best answer
option from
four available
choices for
less than half
of the
questions,
with 6 or more
incorrect
answers in

this
component of
the
assessment.
At this level
you will not
have
demonstrated
a basic
knowledge
and
understanding
in Topic 1 and
Topic 2.
MGT330 201960 S I
Page 11 of 23
Assessment item 2
Strategic Analysis Report
Value: 40%
Due Date: 05-Sep-2019
Return Date: 26-Sep-2019
Length: 2500 words
Submission method options: Alternative submission method
Task

You are required to select an organisation of your choice and to
undertake a strategic
analysis of the organisation, which aims to achieve an
understanding of the key strategic
issues, both externally and internally, that are likely to
influence the performance of the
company into the future.
In this report, you are required to write a 2500 word report
including 200 words of an executive
summary, but excluding references and appendix. You should
also perform the following
tasks:
1. Describe briefly the background information of the firm (or
Strategic Business Unit - SBU)
assigned. This information should be brief and relevant to the
discussion of your assignment
and thus may include ownership, history, size, business scope,
major products/services, and
major markets of the firm (or SBU) selected.
2. Conduct external environment analysis including a macro-
environment analysis and
Porter's 5 forces analysis:
• Conduct a macro-environment analysis for the entire industry
within which the firm
(or SBU) operates. You should use PESTEL model and focus on
the understanding of
the purpose of this analysis, the identification of key factors
and their implications in
terms of key opportunities and threats, and the discussion of
their overall impact on
the industry growth in the future. Draw your conclusion based
on your macro-

environment analysis.
• Undertake a competitive analysis using Porter’s 5 forces
model. You are required to
pay attention to the purpose of this analysis, the inter-
connectedness of different
aspects of the competitive forces, and their overall impact on
the industry and the
organisation selected in terms of main driving forces in the
competitive environment.
Draw your conclusions based on your five-force analysis.
3. Conduct internal environment analysis. You should identify 4
to 5 key resources and
competencies of the firm (or SBU) that are likely to provide
sustainable competitive advantage
for an analysis using the V.R.I.O framework.
4. Summarise your findings based on your external and internal
environment analysis. Identify
the key issues that the firm (or SBU) faces and give your
recommendations.
You may select any organisation (local or international) with
enough publicly available
information to enable you to address the assessment criteria. If
you choose a large
organisation eg. Wesfarmers, make sure you select one of the
companies/ divisions for your
MGT330 201960 S I
Page 12 of 23

analysis such as Bunnings or Coles to make sure your
organisation only covers one industry.
While working on this task, assume that your report will be
presented to senior management
to inform the strategy team of the key strategic issues facing the
company.
Rationale
outcome/s:
concepts and models.
strategic recommendations.
HD (85% - 100%) DI (75% - 84%) CR (65% -74%) PS (50% -
64%) FL (0 - 49%)
1. Executive
summary
(5 marks)
Comprehensive;
purpose and
significance of
the main points
are clearly
explained and

signposted
through the
report
structure.
Provides a
comprehensive
summary of
the report and
a clear,
succinct
identification
of the main
points.
Provides an
adequate
summary of
the report
that
identifies the
significant
aspects and
how they
inter-relate.
Attempts to
identify the
requirements,
but does not
draw out
their
significance
in relation to
the
assignment.

Does not
identify/
provides only
a limited
identification
of the
requirements
for the
executive
summary.
2.
Identification,
use,application,
and critical
analysis of
theory. (10
marks)
Concise
overview and
critical
evaluation of
relevant theory.
Theory is
integrated
exceptionally
well into
argument.
Concise
overview and
critical analysis
of relevant
theory. Theory

is integrated
and linked well
to argument.
Identification
and
explanation
of relevant
theory.
Theory
linked to
point of view
and/or
argument.
Include some
relevant
theory and
makes
attempts to
use theory to
support point
of view and/
or argument.
Relevant
theory on the
topic missing
and/or none/
poor attempt
to use theory
to support
point of view
and/or
argument.

3 .Critical
reflection and
discussion.
(15 marks)
Consistently
demonstrate
and integrate
critical/
reflective
evaluation.
Evidence of
superior
reflective
thinking skills.
Mostly
demonstrate
and integrate
critical/
reflective
analysis.
Evidence of
good reflective
thinking skills.
Demonstrate
and integrate
critical/
reflective
analysis.
Evidence of
reflective
thinking
skills.

Some
attempt at
critical/
reflective
analysis.
Does not
demonstrate
any attempt
at critical/
reflective
analysis.
4 .Conclusion
(5 marks)
Well-
constructed and
Well-
constructed
Clear
conclusion
Conclusion
reflects main
Conclusion
not evident
MGT330 201960 S I
Page 13 of 23

HD (85% - 100%) DI (75% - 84%) CR (65% -74%) PS (50% -
64%) FL (0 - 49%)
clear conclusion
with strong
links to main
arguments in
report.
and clear
conclusion
supported by
main
arguments in
report.
that reflects
main
arguments in
report.
arguments in
report.
and/or does
not relate to
main
arguments in
report.
5. Reference
and
Presentation

(5 marks)
10+ highly
relevant current
scholarly
resources
presented in
perfect APA
style. Articles
used to
outstanding
effect in report.
Outstanding
expression and
presentation.
Fluent writing
style
appropriate to
the style of
paper. Grammar
and spelling
accurate. Very
considerate to
the reader.
Meets report
presentation
guidelines.
10+ very
relevant
current
scholarly
resources
presented in
perfect APA
style. Articles

used to very
good effect in
report.
Very good
expression and
presentation.
Language
fluent, few
errors in
grammar,
spelling and
syntax. Mainly
considerate of
the reader.
Meet report
presentation
guidelines.
10 relevant
current
scholarly
resources
presented in
APA
referencing
style. Articles
used to good
effect in
report.
Good
expression
and
presentation.
Language
mainly fluent
grammar and

spelling
mainly
accurate.
Needs more
consideration
given to the
needs of the
reader.
Mainly meets
report
presentation
guidelines.
10 potentially
relevant
current
scholarly
resources
presented in
near-perfect
APA
referencing
style. Articles
used to some
effect in
report.
Satisfactory
expression
and
presentation.
Meaning
apparent but
language not
always fluent,
grammar
and/or

spelling
contain
errors.
Minimal
consideration
given to the
reader. Meets
most report
presentation
guidelines.
<10 relevant
current
scholarly
resources,
and/or not in
perfect APA
referencing
style. Articles
not used to
good effect in
report.
Unsatisfactory
expression
and
presentation.
Meaning
unclear and/
or grammar
and/or
spelling
contain
frequent
errors. No
consideration
given to the

reader. Poor
presentation
e.g. single
spacing, no
paragraphs.
Presentation
This is a third year subject and a high standard of presentation
is expected for this assignment.
The following factors will influence your assessment grade:
- Grammar and syntax;
- Clarity and coherence of arguments;
MGT330 201960 S I
Page 14 of 23
- Structure, organisation, sentence and paragraph construction;
- In-text citations and end-text referencing (APA 6th)
Requirements
To complete your report for Senior Management you will need
to include the following
sections:
1. Executive Summary
2. Background - Give a brief account of the background of the

company/organisation
3. External Analysis – Conduct an analysis of the organisation’s
external environment and
competitive landscape
4. Internal Analysis – Conduct an analysis of the organisation’s
internal environment
including its resources/capabilities identify the company’s core
competencies and
resulting ability to outperform competitors
5. Identify and analyse the issues in the internal and external
environments and
prioritize them in the order you feel are most critical
6. Conclusion – Summarise your findings.
Most importantly, always use your spelling and grammar
checker. Remember this does not
pick up all errors, so you must also manually and carefully edit
your work.
APA (6th Edition) Referencing must be used, including in-text
citations and complete and
correctly formatted reference list. More information can be
found here
http://student.csu.edu.au/library/integrity/referencing-at-csu
(http://student.csu.edu.au/
library/integrity/referencing-at-csu)
This assignment must be submitted through Turnitin.
It is recommended that your name, student ID and page number
are included in the header

or footer of every page of the assignment.
Further details about submission through Turnitin will be
provided via Interact2.
Additional information to assist you with your assignment can
be found
here
http://student.csu.edu.au/study/skills/guidesandtips/writing-at-
uni
The CSU report checklist can be found here
(http://student.csu.edu.au/__data/assets/
pdf_file/0019/830350/Report-writing-
checklist.pdf)http://student.csu.edu.au/__data/assets/
pdf_file/0019/830350/Report-Writing-Checklist.pdf
Assessment item 3
Strategic Evaluation and Implementation Report
Value: 50%
Due Date: 18-Oct-2019
Return Date: 11-Nov-2019
Length: 2500 words
Submission method options: Alternative submission method
MGT330 201960 S I
Page 15 of 23

uni
http://student.csu.edu.au/__data/assets/pdf_file/0019/830350/Re
port-writing-checklist.pdf
port-Writing-Checklist.pdf
Task
By fully utilizing theoretical concepts and sourcing at least ten
current scholarly
resources, complete either 1 or 2 below:
1. Discuss and evaluate a major strategic decision made by your
company (or a company
or organisation that you are familiar with) in the past five years.
• In the light of your review, do you think that the company
acted strategically?
• Evaluate the suitability of the current strategy. If the current
strategy is not suitable,
please recommend no more than two alternative strategic
initiatives and justify your
recommendations.
OR
2. It is often noted that implementation is the most difficult
aspect of strategic
management. With reference to your organisation(or a company
or organisation that you

are familiar with), how might this be the case?
• Discuss strategy implementation issues in the organisation.
• Analysis and critique of the benefits and limitations of
strategy implementation in the
organisation.
• Analysis of why implementation might be the most difficult
part of the strategic
management process in the organisation.
• Recommendations on how strategy implementation could be
enhanced.
In this assignment, you are required to write a 2500 word
Report. This includes a 200
word executive summary, but excludes references and appendix.
Rationale
outcome/s:
concepts and models.
strategic recommendations.
• be able to evaluate alternative courses of strategic action to
justify choices of select/
implement/monitor strategies for organisations.
HD (85%-100%) DI (75% - 84%) CR (64% - 74%) PS (50% -

64%)
1. Understanding
of strategic
management
theory and tools,
and the quality of
Information
sources
(10 marks)
Excellent
understanding of
SM theory,
concepts, and
tools involved
and excellent use
of wide range of
information from
appropriate
sources.
Good
understanding of
SM theory and
tools involved
and good use of a
range of
appropriate
information
sources.
Adequate
understanding of
SM theory and
tools involved

and good use of a
range of
appropriate
information
sources.
Some
understanding of
SM theory and
tools involved and
little variety of
information, or
not all sources are
appropriate.
Limit
under
SM theor
tools inv
inappr
inf
sour
primarily on only
one sour
MGT330 201960 S I
Page 16 of 23
HD (85%-100%) DI (75% - 84%) CR (64% - 74%) PS (50% -
64%)

2. Critical
analysis and
synthesis of
argument
(15 marks)
Excellent critical
analysis and
evaluation
Showing
understanding of
complex issues.
Excellent
synthesis of
complex ideas
into a coherent,
logical and
convincing
argument.
Good critical
analysis and
evaluation of
issues and
synthesis of ideas
and information
into an argument
that shows
merits.
Adequate critical
analysis and
evaluation of
issues and
synthesis of ideas
and information

into an argument
that shows some
merit. would have
been helpful to
justify argument.
Some analysis and
evaluation of
issues evident.
Synthesis is
patchy or
argument is not
well developed or
lacks coherence.
sufficient to justify
argument.
Lit
analysis or
synthesis e
in assignment
argument lacks
logic.
3. Application of
strategic
management
theory and tools
(10 marks)
Excellent
application of
appropriate
strategic
management
theoretical

frameworks and
tools to support
argument and
justify conclusion.
Good use of
appropriate
strategic
management
frameworks
Adequate use of
appropriate
strategic
management
frameworks
Some strategic
management tools
or frameworks
used, but not
always
appropriate, or
not
Lit
applic
str
manag
theor
frame
tools, or
inappr
tools used tha
no
argument

4.
Recommendation
(5 marks)
Well
supported
recommendations
included.
Clear and
supported
recommendations
included.
Clear
recommendations
are included.
Recommendations
are mentioned but
not clear or
supported.
Lit
rec
5. Presentation
(5 marks)
Outstanding
expression and
presentation.
Fluent writing
style appropriate
to the style of

paper. Grammar
and spelling
accurate. Very
considerate to the
reader. Meets
report
presentation
guidelines.
Very good
expression and
presentation.
Language fluent,
few errors in
grammar, spelling
and syntax.
Mainly
considerate of the
reader. Meet
report
presentation
guidelines.
Good expression
and presentation.
Language mainly
fluent grammar
and spelling
mainly accurate.
Needs more
consideration
given to the needs
of the reader.
Mainly meets
report
presentation

guidelines.
Satisfactory
expression and
presentation.
Meaning apparent
but language not
always fluent,
grammar and/or
spelling contain
errors. Minimal
consideration
given to the
reader. Meets
most report
presentation
guidelines.
Unsa
expr
present
Me
and/or gr
and/or spelling
cont
err
consider
giv
reader
present
single sp
par
6. Referencing
skills

10+ highly
relevant current
10+ very relevant
current scholarly
10 relevant
current scholarly
10 potentially
relevant current
<10 r
curr
MGT330 201960 S I
Page 17 of 23
HD (85%-100%) DI (75% - 84%) CR (64% - 74%) PS (50% -
64%)
(5 marks)
scholarly
resources
presented in
perfect APA style.
Articles used to
outstanding effect
in report.

resources
presented in
perfect APA style.
Articles used to
very good effect
in report.
resources
presented in APA
referencing style.
Articles used to
good effect in
report.
scholarly
resources
presented in near-
perfect APA
referencing style.
Articles used to
some effect in
report.
resour
no
ref
Articles no
to g
report
Presentation
This is a third year subject and a high standard of presentation
is expected for this assignment.
The following factors will influence your assessment grade:

- Grammar and syntax;
- Clarity and coherence of arguments;
- Structure, organisation, sentence and paragraph construction;
- In-text citations and end-text referencing (APA 6th)
Requirements
To complete your report for Senior Management you will need
to include the following
sections:
1. Executive Summary
2. Background - Give a brief account of the background of the
company/organisation
3. Identify the organisation’s current strategy
4. Evaluate the suitability/implementation issues of the
organisation’s current strategy
5. Identify the key issues and give your recommendations
6. Conclusion
Most importantly, always use your spelling and grammar
checker. Remember this does not
pick up all errors, so you must also manually and carefully edit
your work.
APA (6th Edition) Referencing must be used, including in-text
citations and complete and
correctly formatted reference list. More information can be
found here
(http://student.csu.edu.au/
library/integrity/referencing-at-csu)

This assignment must be submitted through Turnitin.
or footer of every page of the assignment.
Further details about submission through Turnitin will be
provided via Interact2.
Additional information to assist you with your assignment can
be found here
uni
MGT330 201960 S I
Page 18 of 23
uni
The CSU report checklist can be found here
(http://student.csu.edu.au/__data/assets/pdf_file/
0019/830350/Report-writing-
checklist.pdf)http://student.csu.edu.au/__data/assets/pdf_file/
0019/830350/Report-Writing-Checklist.pdf
Assessment Information
Academic integrity

Academic integrity means acting with honesty, fairness and
responsibility, and involves
observing and maintaining ethical standards in all aspects of
academic work. This subject
assumes that you understand what constitutes plagiarism,
cheating and collusion. If you are a
new student we expect you to complete the modules called
Academic Integrity at CSU
(http://student.csu.edu.au/library/integrity/academic-integrity-
course).
CSU treats plagiarism seriously. We may use Turnitin to check
your submitted work for
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(http://student.csu.edu.au/library/
integrity/referencing-at-csu/checking) in your assessments
before submission.
Referencing
Referencing is an important component of academic work. All
assessment tasks should be
appropriately referenced. The specific details of the referencing
requirements are included in
each assessment task description. Get referencing style guides
and help
(http://student.csu.edu.au/library/integrity/referencing-at-csu) to
use for your assessments.
How to submit your assessment items
Online submission process
Assessment tasks that are not completed through the Subject
site need to be submitted
electronically via Turnitin site by the due date. You will be able

to add yourself to the Turnitin
class once the class is set up by your Lecturer.
Unless advised otherwise, all Turnitin submissions are due by
midnight (AEST) of the date
specified. Please note that the time and the date of your Turnitin
submission will be used to
determine your official submission time.
All textual elements within an assessment must be submitted in
a format that is readable by
Turnitin. Specific exceptions, where an assessment requires the
insertion of image based
evidence of workings will be outlined in the context of the
assessment. Students that
deliberately attempt to insert content of assessments in a format
that is not readable by
Turnitin may be subject to Academic misconduct investigations.
Additional Submission Information:
or footer of every page of any assignment. You are also
required to rename your assignment
file before you submit via Turnitin as per below protocol:
SUBJECT CODE, SI, SURNAME, STUDENT ID,
ASSESSMENT NUMBER, SESSION.
MGT330 201960 S I
Page 19 of 23

http://student.csu.edu.au/library/integrity/academic-integrity-
course
http://student.csu.edu.au/library/integrity/academic-integrity-
course
http://student.csu.edu.au/library/integrity/referencing-at-
csu/checking
http://student.csu.edu.au/library/integrity/referencing-at-
csu/checking
Example – BUS100 SI PATEL 11554466 A3 201860.doc
Postal submission process
Under normal circumstances postal submissions will not be
accepted for any of the
assessments required.
Hand delivered submission process
Under normal circumstances hand delivered submissions will
not be accepted for any of the
Alternative submission process
Under normal circumstances alternative submission will not be

accepted for any of the
Extensions
It is best to complete assessment items by the due date.
However, when something
unavoidable comes up an extension may be possible. The
following principles are used when
processing extensions
1. For in-session assessment items, an extension request for up
to three (3) calendar days can
be made by emailing your subject coordinator directly before
the due date. In your email
please state the reason why you need more time as well as what
precisely you are requesting.
Supporting documentation is not required. If an extension is
requested in the above format
with a valid reason and your request does not disadvantage
other students, the extension will
be approved.
2. For in-session assessment items, extension requests of more
than three (3) calendar days
must be made via the special consideration
form:https://apps.csu.edu.au/specialcons/.
(https://apps.csu.edu.au/specialcons/)The request must be made
before the due date and
must include supporting documentation. Acceptable reasons are
given in the Special
Consideration
Policy<https://policy.csu.edu.au/view.current.php?id=00298>.
Each request will
be considered on a case by case basis. The request may not be
granted. The maximum

extension possible will be seven (7) calendar days.
3. If you receive an extension, then you should expect the
assessment item and its feedback to
be returned later. If you submit later than the extended due date
you will receive late penalties
as per guidelines below.
4. Unless your extension permits otherwise, submissions
received 10 days after the original
due date will receive zero.
5. For end of session exams, you can request a supplementary
exam
viahttps://apps.csu.edu.au/specialcons/.
(https://apps.csu.edu.au/specialcons/)This request
must be made within 3 working days of the date of exam and
must include supporting
documentation. Acceptable reasons are given in the Special
Consideration Policy
<https://policy.csu.edu.au/view.current.php?id=00298>. For
medical issues, a CSU medical
certificate is required. If the supplementary exam (SX) is
awarded then your exam is moved to
the next examination period. In order to preserve exam integrity
and manage the logistics of
exams, the timing of a supplementary exam is heavily restricted.
MGT330 201960 S I
Page 20 of 23
https://apps.csu.edu.au/specialcons/

How to apply for special consideration
Academic regulations provide for special consideration to be
given if you suffer misadventure
or extenuating circumstances during the session (including the
examination period) which
prevents you from meeting acceptable standards or deadlines.
Find the form on the Student
Portal Special Consideration, Misadventure, Advice and
Appeals (http://student.csu.edu.au/
study/academic-advice) page.
Penalties for late submission
The penalty for late submission of an assessment task (without
obtaining the Subject
Coordinator's approval for an extension) will be:
10% deduction per day, including weekends, of the maximum
marks allocated for the
assessment task, i.e. 1 day late 10% deduction, or 2 days late
20% deduction.
An example of the calculation would be:
Maximum marks allocated = 20
Penalty for one day late = 2 marks (so, a score of 18/20
becomes 16/20 and a score of 12/20
becomes 10/20).

If an assignment is due on a Friday but is not submitted until
the following Tuesday, then the
penalty will be four days (40% deduction or 8 marks in the
example above).
Submissions more than 10 days late will be acknowledged as
received but will not be marked.
Resubmission
Under normal circumstances resubmission of assessment items
will not be accepted for any of
the assessments required in this subject.
Feedback processes
You will receive feedback in several forms throughout the
semester.
You will receive a mark for each assessment except where the
assessment has a satisfactory/
unsatisfactory grade type. The mark of the assessment will
indicate the grade for that
assessment.
Feedback on your assignment can be viewed on Turnitin after
the assignment results are
released. The following are some of the forms of feedback that I
may use.
• Voice comments
• In text comments
• Marking rubrics
• End of text comments

MGT330 201960 S I
Page 21 of 23
http://student.csu.edu.au/study/academic-advice
http://student.csu.edu.au/study/academic-advice
You may also approach me in class for further clarification or
feedback on the assignment.
Assessment return
You should normally expect your marked assessment to be
returned to you within 15 working
days of the due date, if your assessment was submitted on time.
If you submitted your
assessment on time but not received it back by the return date,
you should make enquiries in
the first instance to the subject coordinator.
Student Feedback & Learning Analytics
Evaluation of subjects
CSU values constructive feedback and relies on high response
rates to Subject Experience
Surveys (SES) to enhance teaching. Responses are fed back
anonymously to Subject
Coordinators and Heads of Schools to form the basis for subject
enhancement and recognition
of excellence in teaching. Schools report on their evaluation
data; highlighting good practice
and documenting how problems have been addressed. You can
view a summary of survey

results via the Student Portal SES Results
(https://student.csu.edu.au/study/subject-
experience-survey-results) page.
We strongly encourage you to complete your online Subject
Experience Surveys. You will be
provided with links to your surveys via email when they open
three [3] weeks before the end of
session.
Changes and actions based on student feedback
The preparation of this subject has taken into account the
feedback provided by students in
recent sessions.
In response to the student feedback, changes have been made to
the Assessment Items and
the Marking Criteria.
Learning analytics
Learning Analytics refers to the collection and analysis of
student data for the purpose of
improving learning and teaching. It enables the University to
personalise the support we
provide our students. All Learning Analytics activities will take
place in accordance with the
CSU Learning Analytics Code of Practice. For more
information, please visit CSU's Learning
Analytics (http://www.csu.edu.au/division/student-
learning/home/analytics-and-evaluations/
learning-analytics) website.
Data about your activity in the Interact2 site and other learning
technologies for this subject
will be recorded and can be reviewed by teaching staff to

inform their communication,
support and teaching practices.
Services & Support
MGT330 201960 S I
Page 22 of 23
https://student.csu.edu.au/study/subject-experience-survey-
results
https://student.csu.edu.au/study/subject-experience-survey-
results
http://www.csu.edu.au/division/student-
learning/home/analytics-and-evaluations/learning-analytics
Your Student Portal (http://student.csu.edu.au/) tells you can
how you can seek services and
support. These include study, admin, residential, library,
careers, financial, and personal
support.
(https://student.csu.edu.au/study/skills) with our free study
services.
We have services online, on campus and near you. These
services can help you develop your

English language, literacy, and numeracy.
Library Services
CSU Library (https://student.csu.edu.au/library) provides access
to the eBooks, journal
articles, books, and multimedia resources needed for your
studies and assessments. Get the
most out of these resources by contacting Library staff either
online or in person, or make use
of the many Library Resource Guides, videos and online
workshops available.
CSU Policies & Regulations
This subject outline should be read in conjunction with all
academic policies and regulations.
Please refer to the collated list of policies and regulations
relevant to studying your subject(s)
(http://student.csu.edu.au/administration/policies-regulations-
subjects) which includes links
to the CSU Policy Library (http://www.csu.edu.au/about/policy)
- the sole authoritative source
of official academic and administrative policies, procedures,
guidelines, rules and regulations
of the University.
Subject Outline as a reference document
This Subject Outline is an accurate and historical record of the
curriculum and scope of your
subject. CSU's Subject Outlines Policy
(https://policy.csu.edu.au/view.current.php?id=00267)
requires that you retain a copy of the Subject Outline for future
use such as for accreditation
purposes.

MGT330 201960 S I
Page 23 of 23
http://student.csu.edu.au/
https://student.csu.edu.au/study/skills
https://student.csu.edu.au/library
http://student.csu.edu.au/administration/policies-regulations-
subjects
http://student.csu.edu.au/administration/policies-regulations-
subjects
http://www.csu.edu.au/about/policy
https://policy.csu.edu.au/view.current.php?id=00267MGT330 -
Business StrategyTable of ContentsSubject SummarySubject
CoordinatorConsultation proceduresSubject
OverviewAbstractLearning outcomesSubject contentKey
subjectsAssumed knowledgeSubject Schedule &
DeliveryPrescribed textClass/tutorial times and
locationScheduleLearning materialsLearning, teaching and
support strategiesRecommended student time
commitmentAssessment ItemsEssential requirements to pass
this subjectItemsAssessment item 1Online
TestTaskRationaleMarking criteria and standardsAssessment
item 2Strategic Analysis ReportTaskRationaleMarking criteria
and standardsPresentationRequirementsAssessment item
3Strategic Evaluation and Implementation
ReportTaskRationaleMarking criteria and
standardsPresentationRequirementsAssessment
InformationAcademic integrityReferencingHow to submit your
assessment itemsOnline submission processPostal submission
processHand delivered submission processAlternative
submission processExtensionsHow to apply for special
considerationPenalties for late

submissionResubmissionFeedback processesAssessment
returnStudent Feedback & Learning AnalyticsEvaluation of
subjectsChanges and actions based on student feedbackLearning
analyticsServices & SupportDevelop your study skillsLibrary
ServicesCSU Policies & RegulationsSubject Outline as a
reference document
Chapter 10
Organisational Structure
and Strategic Control
Prepared by Rajeev Sharma
Charles Darwin University
Learning objectives
Distinguish between the basic principles that determine the
structural characteristics of complex human organisations
Discuss the role and importance of structural building blocks
for structural arrangements
Examine the differences between mechanistic and organic
structural features
Distinguish between specialisation, coordination and
cooperation
Learning objectives
Apply principles of hierarchy in organisational design to
specific tasks and business environments
Illustrate and discuss types of organisational structure and their
strengths and weaknesses
Apply principles of organisational design
understand the role of information systems for coordination and
how these can be applied

Introduction
system is the key component of strategy implementation
The formulation of strategy should not be separated from its
implementation
It is widely accepted now that ‘organisation structure should
follow strategy’
Refer to page 317
system is the key component of strategy implementation.
Hence, the view of strategy formulation and strategy
implementation as a sequential process is summed up in the
adage ‘structure follows strategy’.
Having established that how companies organise themselves is
fundamental to their strategy and their performance, the goal of
this chapter is to introduce the key concepts and ideas necessary
to understand and design companies’ structures and systems, as
well as possible changes to them
4
Principles of organisational design
The modern organisational design should incorporate key design
principles or building blocks
It is widely acknowledged that modern organisation has evolved
from a purely functional to a highly adaptable design
Modern organisations have emerged from two key influences:
Line and staff structure
Multidivisional corporations

Refer to page 317
Before considering organisational design issues, it is important
to discuss the key principles including the notion of line and
staff
It is important to acknowledge the history of organisational
design development. Work of Alfred Candler is worth
consideration here
5
line and staff structure
Historically, most organisations were small and operated from
a single plant or office.
With advancement in transportation and communication,
organisations commenced operating over a wider area
These geographically dispersed units were managed by an
administrative headquarter.
This organisational form was known as line and staff structure
Refer to page 318
Discuss the evolution of geographically dispersed organisation
and how they led to the creation of line and staff structure. Also
highlight the features of this structure including the fact that
employees were either line, allocated to operational tasks within
the operating units, or staff, administrators and functional
specialists located at head office
6
Companies and markets
The business corporation is one of the greatest innovation of
modern civilisation
that is distinct from the individuals that own the enterprise

by managerial hierarchical direction
Refer to page 318
that is distinct from the individuals that own the enterprise.
The main exceptions include agriculture and crafts in the
developing world, where family-based production predominates,
and services such as defence, policing and education that are
usually provided by government organisations.
by managerial hierarchical direction. The relative roles of
companies and markets are determined by efficiency and
transactions will tend to be organised within companies rather
than across markets
7
Building blocks of structure
Fig. 10.1
Refer to page 319
Discuss the role of flexibility and responsiveness to modern
organisations and how coordination is essential.
Use examples from the text and from other sources
8
Mechanistic and organic forms
Table 10.1

Refer to page 319
Explain and contrasts key characteristics of the two forms by
considering various features of the two forms listed above
During the 1950s and 1960s, the human relations school
recognised that cooperation and coordination within
organisations was about social relationships as well as
bureaucratic principles. Refer to study of Scottish engineering
companies by Burns and Stalker that identified two
organisational forms: mechanistic forms, characterised by
bureaucracy, and organic forms that were less formal, in which
coordination relied on mutual adjustment and interaction was
more flexible.
The discussion should extend to table 10.2 to include the notion
of communities of practice and other organisational forms
9
Specialisation and the division of labour
The fundamental source of efficiency in production is
specialisation, especially the division of labour into separate
tasks
Refer to page 324
Henry Ford experienced huge productivity gains by installing
moving assembly lines and assigning individuals to highly
specific production tasks. Between the end of 1912 and early
1914, the time taken to assemble a Model T fell from 106 hours
to just over 6 hours.

However specialisation comes at a cost.
10
The coordination problem
efforts, production can not occur
Four different coordination mechanisms are common:
Price
Rules and directives
Mutual adjustment
Routines
Refer to page 325
efforts, production can not occur.
Consider the operation of four different coordination
mechanisms:
• Price. In the market, coordination is achieved through the
price mechanism. Price mechanisms also exist within
companies.
• Rules and directives. Unlike self-employed workers, who
negotiate market contracts for individual tasks, employees enter
general employment contracts where they agree to perform a
range of duties as required by their employer. Authority is
exercised by means of general rules and specific directives.

• Mutual adjustment. The simplest form of coordination
involves the mutual adjustment of individuals engaged in
related tasks. Such mutual adjustment occurs in all teams and
work groups where there is no formal leader.
• Routines. Where activities are performed recurrently,
coordination based on mutual adjustment and rules becomes
institutionalised within organisational routines. These regular
and predictable sequences of coordinated actions by individual
workers are the foundation of organisational capability
11
The cooperation problem
Cooperation problem refers to the problem of different
organisational members having conflicting goals
Several mechanisms exist for achieving goal alignment within
organisations:
Control mechanisms
Financial incentives
Shared values
Refer to page 325
The existence of different organisational members having
conflicting goals creates cooperation problem
This can be addressed through different mechanisms including:
Control mechanisms typically operate on the basis of managers
supervising groups of subordinates using both positive and
negative incentives. Positive incentives are typically the reward
of promotion up the hierarchy in return for compliance;
negative incentives are dismissal and demotion for failing to
acquiesce to rules and directives.
• Financial incentives are designed to reward performance. Such
incentives extend from piece-rates for production workers to
share options and profit bonuses for executives.
• Shared values are the commonality of goals between

organisational members. Examples are Wal-Mart, Coles Group,
Amway, and the Shell Group, which all show the presence of
shared values and principles that encourages the alignment of
individual and corporate goals without necessarily undermining
the individuality of organisational members.
12
Hierarchy in organisational design
create hierarchy
Hierarchical structures are essential for creating efficient and
flexible coordination in complex organisations
The critical issue is not whether to organise by hierarchy — but
how the hierarchy should be structured and how the different
parts of it should relate to one another
Refer to page 327
create hierarchy.
Despite the negative associations that currently attach to
hierarchy, it is possible to argue that hierarchical structures are
essential for creating efficient and flexible coordination in
complex organisations.
The critical issue is not whether to organise by hierarchy —
there are very few, if any, alternatives — but how the hierarchy
should be structured and how the different parts of it should
relate to one another.
13
Hierarchy as coordination: modularity

subsystems
There are two key advantages to hierarchical structures:
Economising on coordination
Adaptability
Refer to page 327
subsystems.
Examples of hierarchy include:
• the human body, which is composed of a hierarchy of cells,
organs and subsystems.
• physical systems, which are composed at the macro level of
planets, stars and galaxies, and at the micro level of subatomic
particles, atoms and molecules.
• social systems, which consist of individuals, families,
communities, tribes or socioeconomic groups and nations.
• a book, which consists of letters, words, sentences, paragraphs
and chapters
It is useful to also discuss the advantages of hierarchy
including:
Economising on coordination. As noted earlier, the gains from
specialisation come at the cost of coordination. As an
organisation increases in size and complexity, so the
communication-economising benefits of hierarchically arranged
modules increase.
Adaptability. Hierarchical, modular systems are able to evolve
more rapidly than unitary systems that are not organised into
subsystems. Such adaptability requires some degree of
decomposability: the ability of each component subsystem to
operate with some measure of independence from the other
subsystems
14

Hierarchy as a control: bureaucracy
It has been shown that hierarchy is an efficient solution to the
problem of coordination in organising complex tasks.
To the extent that hierarchy is also a device for exercising
control, it is also one solution to the problem of cooperation in
organisations.
Administrative hierarchies operate as bureaucracies
Refer to page 328
It is important to discuss how hierarchy and bureaucracy are
linked
Also to discuss the underlying principles proposed by Weber
15
Rethinking hierarchy
Hierarchical organisations generally add layers as they get
bigger
slower decision making and increased loss of control
can be fatal
Refer to page 329
It is helpful to consider some of the recent research on
hierarchy including:
Hierarchical organisations add layers as they get bigger.

slower decision making and increased loss of control.
can be fatal.
So long as there are benefits from the division of labour,
hierarchy is inevitable.
The critical issue is to reorganise hierarchies in order to
increase responsiveness to external change.
The trend towards decentralisation has not been one way. Some
companies engage in decentralisation followed by a phase of
centralisation
16
Types of structure in focus
Four common organisational forms include:
The matrix structure
Refer to page 331
Provide an overview of the four organisational forms
17
It is a structure with a minimum level of division of labour
person, usually the founder, with very little formalisation
adaptability

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