Diese Seminararbeit behandelt die Frage, warum die multidivisionale Organisationsform (M-Form) für international wachsende und diversifizierte Unternehmen effizienter ist als die funktionale Organisationsform (U-Form). Grundlage der Analyse ist die Theorie von Alfred Chandler, der das Prinzip „Structure follows Strategy“ prägte.
Anhand des Fallbeispiels General Motors wird aufgezeigt, wie das Unternehmen unter William Durant durch eine ineffiziente, zentralisierte Struktur (U-Form) in die Krise geriet. Erst die Einführung der M-Form durch Alfred Sloan ermöglichte eine flexible, dezentrale Organisation, die es GM erlaubte, verschiedene Marken eigenständig und marktgerecht zu führen. Die Arbeit stellt die vier Management-Ebenen der M-Form dar und vergleicht diese mit der U-Form. Dabei zeigt sich: Die M-Form erleichtert strategische Steuerung, fördert Innovation und verbessert das Controlling – insbesondere in internationalen und diversifizierten Unternehmen.
Table of Contents
- 1 Introduction
- 2 Chandler's Object of Study
- 2.1 The Four Companies in Focus
- 2.2 "Structure Follows Strategy"
- 3 The Introduction of the M-Form at General Motors
- 3.1 The Brain Behind General Motors
- 3.2 Why Did General Motors Fail Under William Durant?
- 4 The M-Form
- 4.1 The M-Form Success at General Motors
- 4.2 The 4 Management Functions of the M-Form
- 4.3 U-Form and M-Form in Comparison
- 5 Conclusion
- 6 List of References
- 7 Graphic References
Objectives and Key Themes
This paper aims to explain why the alignment of strategy and structure is crucial for a company's success, particularly when expanding into new markets. It uses Alfred Chandler's "Structure Follows Strategy" principle and the case study of General Motors to illustrate this point, answering the research question: Why do companies adopting a multidivisional organizational structure (M-form) outperform those with a functional structure (U-form) when facing increasing product diversification? * The importance of aligning strategy and organizational structure for business success. * The evolution of organizational structures in response to strategic changes and market pressures. * Case study analysis of General Motors' organizational restructuring and its impact on performance. * Comparison of multidivisional (M-form) and functional (U-form) organizational structures. * Chandler's "Structure Follows Strategy" principle and its continued relevance in modern business.Chapter Summaries
1 Introduction: This chapter introduces the concept that strategic adaptation is vital for companies to thrive in competitive environments. It uses the example of Netflix's recent business model changes as a case study of strategic adjustment in response to declining performance. The chapter then introduces Alfred Chandler's "Structure Follows Strategy" principle as a key organizational theory and establishes the paper's objective: to demonstrate the negative consequences of misalignment between strategy and structure. The chapter also introduces the case study of General Motors, outlining the paper's goal to analyze the application of Chandler's theory to understand General Motors' organizational evolution. 2 Chandler's Object of Study: This chapter delves into the methodology and focus of Alfred Chandler's research. It highlights Chandler's observation that inefficient organizational structures are often reformed due to internal and external pressures. Chandler's focus on the emergence of large corporations and their structural development is discussed, emphasizing his belief that existing management theories neglected the significance of strategy. The chapter then introduces the four companies—DuPont, General Motors, Standard Oil (New Jersey), and Sears, Roebuck and Company—that Chandler studied extensively to illustrate the adaptation of organizations to achieve strategic goals, highlighting his approach of using annual reports, publicly available information, and other sources to analyze organizational transformations. 3 The Introduction of the M-Form at General Motors: This chapter sets the stage for a deeper dive into General Motors. It foreshadows the analysis of the company's failures under William Durant and the successful turnaround achieved through structural change under a new management. The chapter's focus is to provide context for understanding how the M-form was adopted by General Motors as a solution to the challenges faced by the company. 4 The M-Form: This chapter is expected to focus on the multidivisional structure (M-form), its implementation and success at General Motors, as well as a comparison with the functional structure (U-form). It will delve into the four management functions of the M-form.Keywords
Strategy, Structure, Organizational Design, Multidivisional Structure (M-form), Functional Structure (U-form), General Motors, Alfred Chandler, "Structure Follows Strategy", Corporate Growth, Competitive Advantage, Organizational Change, Product Diversification
Frequently asked questions - Language Preview
What is the main topic of this document?
This document is a language preview focused on organizational structure and its relationship to strategy, particularly in the context of business expansion. It uses Alfred Chandler's "Structure Follows Strategy" principle and the case study of General Motors to illustrate the importance of aligning strategy and structure for company success.
What is the "Structure Follows Strategy" principle?
The "Structure Follows Strategy" principle, attributed to Alfred Chandler, suggests that a company's organizational structure should be designed to support its strategic goals. If a company's strategy changes, its structure should also adapt to effectively implement the new strategy.
What is the M-Form?
The M-Form refers to the multidivisional organizational structure. This structure organizes a company into multiple semi-autonomous divisions, often based on product lines or geographic regions, allowing for greater flexibility and responsiveness in diversified markets.
What is the U-Form?
The U-Form refers to the functional organizational structure. This structure groups employees based on their specialized functions, such as marketing, finance, and production. While efficient for companies with simple product lines, it can become unwieldy as a company diversifies.
Which companies are mentioned as case studies in this preview?
General Motors is the primary case study. The document also references Netflix as an example of strategic adaptation. Additionally, the document mentions that Chandler's research involved DuPont, Standard Oil (New Jersey), and Sears, Roebuck and Company.
What are the key themes explored in this document?
The key themes include the alignment of strategy and organizational structure, the evolution of organizational structures, the impact of General Motors' restructuring, a comparison of M-form and U-form structures, and the continued relevance of Chandler's principle.
What is the research question addressed by this document?
The research question is: Why do companies adopting a multidivisional organizational structure (M-form) outperform those with a functional structure (U-form) when facing increasing product diversification?
What topics are covered in the chapter summaries?
The chapter summaries cover an introduction to strategic adaptation and Chandler's principle, an overview of Chandler's research methodology and the companies he studied, and an introduction to General Motors' failures under William Durant and the subsequent adoption of the M-form structure.
What are the main keywords associated with this document?
The keywords include: Strategy, Structure, Organizational Design, Multidivisional Structure (M-form), Functional Structure (U-form), General Motors, Alfred Chandler, "Structure Follows Strategy", Corporate Growth, Competitive Advantage, Organizational Change, Product Diversification.
What are the objectives of this document?
The objectives of this document are to explain the importance of aligning strategy and structure for business success, especially during expansion into new markets, using Chandler's principle and the General Motors case study.
- Quote paper
- Markus Weth (Author), 2023, Why is the multidivisional organisational form (M-form) preferable to the functional organisational form (U-form) ?, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1569931
