Competitive Advantage: Organizational Design

This lecture explores the importance of firm effects on strategy and performance, focusing on competitive advantage through resources, capabilities, and core competencies. It delves into the value chain, SWOT analysis, organizational theory, structure, culture, and change. The session also covers different organizational designs such as flat and tall structures, the complexity of a manager's job, and challenges like differentiation, centralization, and standardization. Case studies on global organizational designs of major firms like Ernst & Young, Starbucks, ArcelorMittal, and Airbus are analyzed. The lecture discusses the characteristics of globally centralized, geographically decentralized, multinational matrix, and global matrix organizational designs. It also examines unique governance models like Haier's Rendanheyi and the role of headquarters in enhancing network effectiveness.