1. Organisational Stress, Structure and Synergy External influences on structure and systems design and their implications for achievement of synergy

8. 1.2ii Conceptualising Structure After Mintzberg (1979) Bold = formal authority and comms ………… . But that is less than half the picture.

9. 1.2iii Conceptualising Structure After Mintzberg (1979) Bold = formal authority and comms Arrows = possible informal relationships Perhaps this is the MDs daughter? What’s wrong with this guy? At the hub of the official and informal systems THE key position, but being marginalised by peers and subordinates The indispensable IT guy?

13. 1.6 Divisional Structures a).Area-based & ). Product-based AREA BASED PRODUCT BASED

16. 1.9 Structural Continuum Strategic Objectives Functional Structure Functional with interdepartmental liaison Matrix Structure Divisional Structure Networking Structure Strategic Objectives: Differentiation, innovation, flexibility Strategic Objectives: Cost leadership, efficiency, stability The drive for added value, excellence and competitive advantage in a turbulent environment are driving companies beyond an internal networking structure and towards a virtual organisation, enabled by ICT.

17. 1.10 The Matrix Structure The Board Function 2 Function 3 Area Division 2 Area / Division 1 Function l Area Division 2 But who is my boss?? I am when it suits me But so am I ! Result : A very stressful place to work!

20. 1.13 The ‘Horizontal’ Organisation (Also embodies ‘Network’ Orgs) The problem (IMHO) for SI is that it is not fully appreciating that the autonomy requirement of ‘Horizontal Organisations’ needs a different control system based on outputs not input control: “ In a functional hierarchy of vertically built companies, individual jobs and information flows are geared towards control. The cross-functional teams of the horizontal company do not require the same level of formal managerial ‘control because their work is aligned with customer needs and ‘controlled’ by a judgement of the final result.” Nikolenko & Kleiner (1996)

21. 1.14 The Virtual Corporation A transient, ephemeral form. A coalition of interested parties from various specialities and points on the value chain working together for a particular purpose, project or contract. The logical end point of outsourcing, whereby a network of suppliers is offering capability at the business unit or function level, such that these capabilities may be combined in a unique way to add value and competitive advantage. (TJ!) Nikolenko & Kleiner (1996) suggest that within a VC “..companies can share costs, skills, and access to global markets with one-another, with each contributing to the common goal what it is best at …. The VC appears to be a single firm with vast capacities, when in reality it is a collection of many smaller firms that work together to achieve a specific goal.”

23. 2.0 Organisational Evolution

24. 3.0 New Structures ? Strategic Apex Operating Core In house Middle Line Mgt. Support Staff Techno-structure After Mintzberg (1979) Operating core virtual / outsourced

25. 4.0 Potential Synergies from M & A Cost Based Synergies : economies of scale in production, R&D, admin , logistics, sales etc Revenue Based Synergies : new competency development to support premium price (via increased market power / innovation capability) or to increase sales volume. (After Wall S & Rees B (2001). Intro to Intnl Business)

26. 4.2 Economies of scale & minimum efficient size (Often suggested as justification for acquisition….) £ C1 Q1 Long Run Av Cost curve Output C1, Q1 = Optimal position