I’m working on a management case study and need an explanation and answer to help me learn.
Case Study – Best Buy Inc.
Analyze structure and control systems.
The aim of this analysis is to identify what structure and control systems the company is
using to implement its strategy and to evaluate whether that structure is the appropriate one for the
company. Different corporate and business strategies require different structures. You need to
determine the degree of fit between the company’s strategy and structure. For example, does the
company have the right level of vertical differentiation (e.g., does it have the appropriate number
of levels in the hierarchy or decentralized control?) or horizontal differentiation (does it use a
functional structure when it should be using a product structure?)? Similarly, is the company using
the right integration or control systems to manage its operations? Are managers being
appropriately rewarded? Are the right rewards in place for encouraging cooperation among
divisions? These are all issues to consider.
In some cases, there will be little information on these issues, whereas in others there will
be a lot. In analyzing each case, you should gear the analysis toward its most salient issues. For
example, organizational conflict, power, and politics will be important issues for some companies.
Try to analyze why problems in these areas are occurring. Do they occur because of bad strategy
formulation or because of bad strategy implementation?
Organizational change is an issue in many cases because the companies are attempting to
alter their strategies or structures to solve strategic problems. Thus, as part of the analysis, you
might suggest an action plan that the company in question could use to achieve its goals. For
example, you might list in a logical sequence the steps the company would need to follow to alter
its business-level strategy from differentiation to focus.
Note: Please write in your words with 100% plagiarism.
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