Organizational Structure and Strategy Implementation

Summary

Organizational structure refers to the formal task system and reporting relations that control, coordinate, and motivate employees toward achieving particular goals. It focuses on the task and role correlation to realize competitive advantage through quality, efficiency, and customer satisfaction optimization. Strategy implementation refers to translating chosen strategies into organizational actions towards goal and objective achievement. It refers to how the organization develops, utilizes, and combines the organizational structure with other social systems such as industries, communities, and corporations for better performance. This paper explores organizational structures and strategy implementation at Kering SA and Gore companies.

Kering SA Company and the Hierarchy Structure

Kering SA Company primarily operated as a retail encompassing department store chain that underwent an operational transformation. It entails a typical hierarchy structure in the organization involving CEOs, directors, and team leaders. Additionally, the organizational structure involves three CEOs leading brands in different states (Grant, 2016). The leading brands encompass some board directors second in the position ranking, heading the various subdivisions. The sub-divisional leadership also has some team leaders among the company employees that help run the company duties.

The Specialization, Coordination, Cooperation, and Control Practices in Kering SA

The company specializes in the acquisitions and development of new businesses through creativity and modernization. It works in product manufacturing under the luxury division and sports and lifestyle designing realizing several products including shoes, jewelry, fragrances, clothing, and developing footwear. Specialization in manufacturing and designing allows the company to produce quality products and customer satisfaction (Grant, 2016). Additionally, the individuals in the specific job jurisdiction specialize in products produced according to skill relevancy.

The company’s coordination entails creating a balance between the luxury and sports and lifestyle divisions. It involves creating a reliable network, supply chain, and product distribution. The employees get directives from their respective supervisors. Employees also ensure communication with each other in goal achievement. The practices allow the employees to work according to the role requirement.

The company’s cooperative practice involves realizing the organizational goal of sales efficiency and customer satisfaction. This practice entails the employees learning the corporate culture and respecting the authority while the supervisory members outline their wishes and task specifications (Zangrande, 2018). The practice is achievable through mutual responsibility as the company outlines each individual’s job specifications.

Lastly, the control mechanism involves senior authority and subordination. The supervisors strictly observe the employees and ensure that they accomplish the given tasks according to the organizational requirement. The communication and relationship in the company reflect the supervisory and subordination culture (Grant, 2016). It also encompasses the company requirements for all employees, including the directors, to be creative compliant. This situation calls for all the members to keep checking their innovative skills to remain a part of the production team.

Kering SA Company’s Structure and Management Systems

The company’s hierarchical structure and management system contribute to strategy development. Also, the main organizational goal is developing and maintaining a competitive advantage in the business market. This provision includes customer satisfaction, talent effectiveness, and innovation ability. The company’s structure is a multi-brand model that utilizes long-term applications venturing into houses’ autonomy (Zangrande, 2018). This structural organization and management system contributes to effective operation, allowing the workers to ensure the given tasks’ best performance. The supervisors provide directives to the team leaders and employees on the best culture practice and supervise the project advancements enhancing best results that fall in line with the company’s strategies.

Additionally, the innovation and creativity aspects guide the recruitment process, allowing for directors’ employment according to the skill requirement and individual qualifications. The company’s value in modernity and creative inspiration also requires compliant employees. The compliant supervisory team helps the employees attain these qualities through proper integration and orientation to the system. Introducing new employees’ organizational structure may involve training provisions under the company stipulation (Grant, 2016). The company’s high requirements for modernity compel the employees to work on their creative skills that enhance achievement (Barroso-Tanoira, 2017). The organizational structure and management system at Kering SA Company largely contribute to the strategy implementation. This situation is evident in the accomplishments and expansion it establishes over the years since its establishment.

The Specialization, Coordination, Cooperation, and Control Practices at Gore

The Gore associates specialize in four major areas that ensure quality products. The first division is the fabrics that mostly produce fiber ropes, vacuum cleaner bags, footwear components, and fire safety fabrics. The second department is the medical unit that ensures several products such as pharmaceutical items, dental floss, and implantable medical device. Another division is the electronic department that produces electronic components, and lastly, the industrial unit ensures various products under the fabric and electronic production, including fuel cell components (Cannon, et al., 2019). The company specialization also involves organization-wide human resources and information technology. It works with individuals having specialized skills in the given area.

The company coordination involves inter-unit leadership where the four divisions encompass a leader. The company allows each team to elect or replace the leaders while retaining one prominent leader, Gore. This type of coordination in the company enables the new employees to fit into the system through distributed orientation based on one’s specialization (Valencia, 2018). The company believes in communication and maintains relationships with customers and employees through the stipulated provisions. It entails associations where each member has a sponsor that focuses on specific projects in the company.

Gore associates’ cooperation practice involves working together towards achieving organizational goals. The company culture requires the employees to uphold fairness and commitment to duty execution (Shaari, 2019). The cooperative nature allows each employee to make viable decisions in the company based on the fairness aspect and ensuring devotion to the organization. It entails small teams that work together and display good management skills.

The control practice depicts the company as dependent on the employee team performance and management. The Gore associates do not have a formal hierarchical positioning, but they work under the team leadership (Cannon et al., 2019). The company controls the new employees by providing a sponsor who guides and introduces them to the lattice organizational culture where communication and operation are peer-to-peer. This progression ensures that the employees conform to the company’s culture and work towards goal achievement.

Gore, Company Effectively Operation

Despite the company lacking a typical control mechanism, it operates effectively, ensuring success. Based on its primary objective of getting money, the company has a unique culture that accommodates all the employees’ views in decision-making. The culture depicts high expectations from each worker. These expectations include innovation, talent, creativity, integrity and morality, commitment to the company, and solidarity (Grant, 2016). The company requires all individuals to work towards these expectations while ensuring respect for others. It allows for social interaction due to the informal progression where employees base on respect and fairness as they interact with each other.

Gore’s Organizational Structure and Management Systems

The company’s organizational structure and management systems entail some formal operations. It encompasses four divisions, the fabrics, industrial, medical, and electronics, which have their leaders managing the small teams. The leadership structure entails the lattice form, and all individuals respect each other in decision-making and duty progression (Grant, 2016). Although the structure lacks the traditional culture, it enhances performance in the organization. The company believes in small teams’ power, working at the same pace, long-term projection, and individual effort. It encompasses some guiding principles, including fairness, commitment, waterline, and freedom, which compel the employees to achieve organizational goals.

The lattice structure allows the individual workers to account for their work. Based on the lack of authoritative advancement, the employees strive to attract and maintain positive relationships by respecting others and committing to the duty progression. The leadership stipulation allows the employees to execute duties based on their passion, and accommodating talents (Grant, 2016). Individuals work based on their skills, and the innovative nature of the company enhances effective strategy implementation. Gore associates establish a long-term relationship with employees which allows the workers to communicate directly to the customers, suppliers, and colleagues (Grant, 2016). This situation provides effective strategy establishment as the due prompt feedback from customers and suppliers other than a long chain of information delivery through a hierarchical structure.

In conclusion, organizational structure and strategy implementation are vital elements in ensuring a company’s competitive advantage. The hierarchical structure at Kering SA encompasses three CEOs and several directors who ensure strict supervision of the subordinate staff in goal implementation. The Gore Company, on the other hand, adopts a lattice for an organizational structure that allows the same level of communication relationship among the employees. The fairness and commitment culture in the company culture contributes to effective strategy implementation. The Kering SA and Gore companies have contrasting organizational structures, but both realize their objectives.

References

Barroso-Tanoira, F. G. (2017). Motivation for increasing creativity, innovation and entrepreneurship. An experience from the classroom to business firms. Journal of Innovation Management, 5(3), 55-74.

Cannon, M., Thorpe, J., Emili, S., & Mader, P. (2019). WL Gore & Associates Inc.: Workplace democracy in a transnational corporation. Institute of Development Studies, 3(3). 1-3.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition (5th ed.). John Wiley & Sons.

Shaari, N. (2019). Organizational culture is the source of competitive advantage. Asian Journal of Research in Education and Social Sciences, 1(1), 26-38.

Valencia, S. (2018). Gore capitalism. Semiotext(e).

Zangrande, A. (2018). Risk sharing in supply relationships: The case of Kering Eyewear (Publication No. 1130376) [Doctoral dissertation, University of Padua]. Google Scholar.

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