Strategy controls Strategic

Management
 An organizational structure is a system that outlines how
certain activities are directed in order to achieve the goals
of an organization. These activities can include rules,
roles, and responsibilities.

Organization
structure The organizational structure also determines how
information flows between levels within the company. For
example, in a centralized structure, decisions flow from
the top down, while in a decentralized structure, decision-
making power is distributed among various levels of the
organization.
 Strategic organizational control involves the monitoring and
evaluation of plans, activities, and results with a view towards
future action, providing a warning signal through the diagnosis of
data, and triggering appropriate interventions, be they either
tactical adjustment or strategic reorientation.”

Strategic controls- Subjective assessment of the fit between what

Organizational the firm might do (opportunities) and what it can do (competitive
advantage)
control

Financial controls Objective assessment of firm performance.

  Strategy and structure have a reciprocal relationship:
 Structure follows the selection of the firm’s strategy, but once in
place, the structure can influence current strategic actions as well as
choices about future strategies.
  Strategy is the main driver that decides the structure an
organization. Also, in case the structure of a company is not
synchronized with its strategy, then the company may not be able to
Relationship achieve the set targets. For example, a company with a diversified
between product portfolio and has a functional structure will not be able to
compete effectively in each of the product categories. As a result,
strategy and the company may start losing the market share of its products

structure
  All organizations require some form of organizational structure to
implement and manage their strategies Firms frequently alter their
structure as they grow in size and complexity

Evolutionary Three basic structure types:

 Simple structure
patterns of
 Functional structure
Strategy and  Multidivisional structure
structure.