Capella University BUS-FP4013: Strategy and Structure Fit Report

This report examines the critical relationship between organizational strategy and structure, emphasizing how their alignment impacts overall performance and learning. It begins by defining strategy and structure, highlighting the importance of their fit for achieving organizational objectives. The report analyzes three scholarly articles that explore this fit in different contexts, including industrial servitized organizations, intellectual capital and knowledge management, and purchasing strategies. It then delves into the concept of strategy and structure fit, citing examples like Apple and Microsoft to illustrate how a participative structure and transformational leadership can foster innovation and employee empowerment. The key characteristics of organizations with a strong strategy and structure fit are identified, including transformational approaches, flat organizational structures, participative leadership, and visionary leaders. The report concludes by emphasizing the importance of this fit for long-term success.

Running head: STRATEGY FIT
STRATEGY FIT
Name of the Student
Name of the University
Author Note

1STRATEGY FIT
Introduction
The strategy can be essentially described as the long term planning which is generally
undertaken by the enterprise in order to ensure that they are being able to face the different
competitors in the long run and to ensure that they are essentially being able to engage in
considerate initiatives as well (Pedler, Burgoyne & Boydell, 1991). The structure as discussed
earlier can be described as the manner in which an organization tends to decide upon its overall
divisions and the departmentalization’s (Tracey & Wiersma, 1995). It is essential that the
structure and the organizational fit align together as this will assist in ensuring overall welfare of
the workplace and the achievement of associated objectives of the enterprise as well.
Brief summary
The three articles which have been selected are as follows:
 Ambroise, L., Prim-Allaz, I., Teyssier, C. & Peillon, S. (2018), "The environment-
strategy-structure fit and performance of industrial servitized SMEs", Journal of Service
Management, Vol. 29 No. 2, pp. 301-328. https://doi.org/10.1108/JOSM-10-2016-0276
The particular paper examined the fit which exists between the structure and the strategy in
the context of the industrial servitized organizations and aimed to ensure that the understanding
of the different aspects such as the profit earning ventures can be understood adequately. The
organizational design is found to have a considerate influence on the financial performance of
the firm. Additionally, the service strategies as used by the firm were also tested in this regard.
Hence, it can be mentioned that, all organizations would be required to undertake considerate
initiatives with the help of which they will be able to gain the application and association related
to the strategies.

2STRATEGY FIT
 Wang, Z., Wang, N., Cao, J. &Ye, X. (2016), "The impact of intellectual capital –
knowledge management strategy fit on firm performance", Management Decision, Vol.
54 No. 8, pp. 1861-1885. https://doi.org/10.1108/MD-06-2015-0231
The primary aim of the article can be mentioned to be to understand the ways in which
the fit can be bought about between the intellectual capital and the knowledge management
strategy as well. The aim was to understand how this has a significant influence on the several
performance of the enterprise to a greater extent. It was found that the Intellectual capital of the
firm tends to have a considerate influence on the strategic type and a good organizational
structure is critical.
 Ateş, M. A., van Raaij, E. M., & Wynstra, F. (2018). The impact of purchasing strategy-
structure (mis) fit on purchasing cost and innovation performance. Journal of Purchasing
and Supply Management, 24(1), 68-82.
The structure follows strategy concept has been highlighted in the given study. In
association with this, it is effective to mention that, it is important to understand the manner in
which a firm generally tends to operate in order to gain a better idea of how its strategy is
dependent on the structure. A misfit between two aspects is bound to have a negative influence
on the enterprise at large (Snyder & Wenger, 2000). Additionally, the overall focus on the cost
and innovation strategies will examine the deviations to a greater extent and hence, the firms
must aim to ensure considerate success. In addition to this, it is effective to note that, the
purchasing proficiency acts as a mediator and the findings and associated managerial decision
making ability can validate the right use of the organizational structure accordingly.

3STRATEGY FIT
Strategy and structure fit
According to Pfeffer and Sutton (1999), the strategy and structure needs to follow a
systematized relationship. A good organizational structure tends to ensure that they are being
able to facilitate innovation and creativity in an enterprise. In line with this, it can be mentioned
effective that, any firm would be required to see to it that they follow a structure which facilitates
innovation as well. The innovation can be described as a set of activities which ensure
considerate operations. In line with this, it is effective to note that, when a firm facilitates a
learning organizational structure then in such a scenario, it can be effectively mentioned that, the
strategy only tends to foster in an environment where the different employees are allowed to
think freely and innovate with one another (Prahalad & Hamel, 1990). When various ideas are
exchanged then in such a scenario, the firm performs considerably well. In association to this, it
is effective to ensure that, to facilitate a competitive strategy, the structure needs to be
participative in nature. A good structure and strategy fit also influences the learning and
performance accordingly as this will ensure that, the firm will be able to achieve its goals. As
discussed in the different articles as well (Wheatley, 1996). The strategy and structure fit will
ensure that the performance of the firm takes place accordingly and aligns strategically with the
different associations as well (Revans, 1983).
Real world example and characteristics allow the strategy and structure to fit
An example in this scenario may be associated with the Apple. Apple undertakes various
initiatives to ensure that it will follow a stable structure. In consideration with this, it is effective
to note that, a stable organizational structure will ensure that, the ideas and the innovation
strategies can be discussed freely in the enterprise and the goals are being achieved consistently.
Those firms which are being able to achieve all the objectives have a participative structure

4STRATEGY FIT
where there is no rigidness and information is shared freely with one another. Another enterprise
with a similar structure and strategy fit is the Microsoft whereby the structure is flat and the
employees are the decision makers themselves (Schein, 1997). These individuals abide by each
other freely and their performance is evaluated and upheld considerately. Hence, n this
consideration the key characteristics of organizations with sound fits are as follows:
 Transformational approach to management
 Flat organizational structures
 Participative leadership styles
 Innovation hubs
 Visionary leaders
 Considerate operational systems
 Well planned strategies (Senge, 1990).
Therefore, all enterprises which aim to ensure long term success need to see to it that they
are being allowed to perform adequately well and that they are encouraged consistently.

5STRATEGY FIT
References
Pedler, M., Burgoyne, J., & Boydell, T. (1991). The learning company: A strategy for
sustainable development. Berkshire, England: McGraw-Hill, Maidenhead.
Pfeffer, J., & Sutton, R. I. (1999). The knowing-doing gap. Cambridge, MA: Harvard Business
School Press
. Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard
Business Review, 68, 79-91.
Revans, R. W. (1983) The ABC of action learning. Melbourne, FL: Kriegar.
Schein, E. J. (1997). Organizational culture and leadership. San Francisco, CA: Jossey-Bass
Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New
York, NY: Doubleday.
Snyder, W. M., & Wenger, E. C. (2000). Communities of practice: The organizational frontier.
Harvard Business Review, 78(1).
Tracey, M., & Wiersma, F. (1995). The discipline of market leaders. Cambridge, MA: Perseus.
Wheatley, M. J. (1996). A simpler way. San Francisco, CA: Berrett-Koehlar.