Question

In: Accounting

At what stage in a company's life cycle is its structure most likely to begin driving...

At what stage in a company's life cycle is its structure most likely to begin driving its strategy? Why? How do business leaders align structure and strategy most effectively at this stage of the company's life cycle? Why?

Solutions

Expert Solution

Companys Life cycle is broadly divided into five stages i.e.
1 Seed Stage
2 Startup Stage
3 Growth Stage
4 Expansion Stage
5 Maturity Stage
In the third stage of the company's life cycle it begins to drive its strategy. By this stage the organisation achieves the stability and the recurring revenue will help pay for your operating expenses and open up new business opportunities.
First of before aligning the structure and strategy the leaders should identify the structural conditions in which an organization operates, its resources and capabilities, and its strategic mind-set.
Then the leader should decide on the approach that it should go ahead with. If the business condition are attractive and organsiation has resources and capibilities to build a distinctive position that it should follow structurlist approach and if the conditions are not favourable than it should choose reconstruction approach.
The company can decide whether it will follow cost leadership or product differentiation or the best cost startegy.
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