Automakers’ strategy and structure: Meeting the fundamental challenge of alignment

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

The findings demonstrate that structure followed differing strategies at General Motors, Ford and Chrysler and provide strong support for Chandler’s dictum. The findings demonstrate the difficulties of maintaining alignment of strategy and structure with changes in the external competitive environment and severe consequences of a misalignment of strategy and structure. The findings also demonstrate that structure alone is not sufficient to implement strategy effectively and that firms must judiciously utilize both internal firm and external market coordinating and control mechanisms to optimize performance.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2016), "Automakers’ strategy and structure: Meeting the fundamental challenge of alignment", Strategic Direction, Vol. 32 No. 10, pp. 30-32. https://doi.org/10.1108/SD-07-2016-0098