This week, our focus is on capability development and organizational structure as they apply to strategy implementation. For this critical thinking assignment, read Chapter 6, "Organizational Structure and Management Systems: The Fundamentals of Strategy Implementation" and evaluate a KSA company and their processes of strategy execution. (SABIC The Saudi Arabian Basic Industries Corporation)

1-How does the strategy developed in the strategic planning processes translate into action for this company? Consider the role of capital expenditure budgets, operating plans, and performance management systems.

2-What role do resources, processes, motivation, play in strategy execution in this company and what stands in the way?

3-How does this company's structure and management system promote the effective implementation of the company's strategy?

4-What specific organizational capability should the company develop to support implementation?

The company I choose is (SABIC The Saudi Arabian Basic Industries Corporation)

IT MUST INCLUDES ALL THE REQUIERMENTS IN THE 4 QUESTION WILL WRITTEN PARAGRAPH AND REFERENCES. The attachment is PPT of this Module

ORGANIZATIONAL DESIGN ORGANIZATIONAL DESIGN Ryanair Holdings plc: General Electric: Organizational Organizational structure Structure, January 2018 rporate Executive Office Chairman & CEO Board of Directors Corporate Staff (Michael o'leary) -Global Research Human Resources -Finance Finance Regulatory Operations Marketing Rehomeco. Technology GE GE Caf Digital Current Health Trans Baker Copyright @ 2019 John Wiley & Sons, Inc. pyright @ 2019 John Wiley & Sons, In 14 ORGANIZATIONAL DESIGN ORGANIZATIONAL DESIGN Royal Dutch/Shell Group, 1994: A Matrix Structure Mechanistic versus organic organizational forms Feature Mechanistic forms Organic forms ATING COMPANIES Task definition Rigid and highly Flexible and broadly specialized defined Coordination and control Rules and directives Mutual adjustment SECTORS vertically imposed common culture Upstream (O and Ga) Natural Gas Communication Vertical Vertical and horizontal Knowledge Centralized Dispersed Commitment and loyalty To immediate superior To the organization and its Books Environmental context Stable with low Dynamic with significant technological uncertainty technological uncer and ambiguity Hierarchy as Control: Hierarchy as Coordination: Weber's Principles of Bureaucracy [1] Hierarchy Economizes on Coordination Costs Rationallegal authority Specialization of labor Hierarchical structure Coordination and control through rules and standard operating procedures . Standardization of employment practices . Separation of positions and people: authority assigned to a (a) Self Organizing Team: b) Hierarchy: position, not a person 10 interactions 4 interactions Formalization of administrative acts, decisions, and rules But what about of -Depends upon the organization's task ght @ 2019 John Wiley & Sons. Inc. pyright @ 2019 John Wiley & Sons. In 10 HE FUNDAMENTALS OF ORGANIZING ORGANIZATIONAL DESIGN Hierarchy as Coordination: [2] Loosely-Coupled Modular Systems Allow Decentralized Adaptation The Hierarchical Structure of Organizational Capabilities: Oil and Gas Exploration Exploration Capability Capability Tightly-coupled, integrated Loose coupled, modular initiated of the system requires linked by standardized interfaces system-wide adaptation permits decentralized adaptation and innovation Copyright @ 2019 John Whey & Sons, Inc. ORGANIZATIONAL DESIGN: THE FUNDAMENTALS OF ORGANIZING DEVELOPING ORGANIZATIONAL CAPABILITY Emergence of the Modern Corporation Integrating Resources to Create Key drivers: Organizational Capability 1) Technological and economic developments transportation (e.g. railroads) enabled firms to serve wider ORGANIZATIONAL markets Developments in communication (e.g. telegraph, telephone) allowed firms to CAPABILITIES organize across a wider geographical area. 2) Legal developments The corporation as a legal entity Processes Organizationa . Limited liability. Structure Motivation ) Organizational innovations . Line and staff structure-the creation of corporate headquarters that administer RESOURCES multiple operating units TANGIBLE INTANGIBLE HUMAN The holding company-financial group of companies linked by parent-subsidiary Financial .Technology . Skills/know-how .Physical The multidivisional structure-integrated companies with corporate headquarters .Reputation Capacity for responsible for financial and strategic control and divisions operating the individual .Culture & collaboration .Motivation Copyright @ 2019 John Wiley & Sons. Inc. 5 6 DEVELOPING ORGANIZATIONAL CAPABILITY DEVELOPING ORGANIZATIONAL CAPABILITY Reorganizing to Accommodate Capability Development: Resources & capabilities in Booz Allen Hamilton (Worldwide Commercial Business), 1992-1998 professional soccer Strategy Operations it ORGANIZATIONAL CAPABILITIES borvices alling capability NY eld capabilities: Attack, Defence, Set-piece, Project Tearus Off-field capabilities, Scouting, Player appraisal, Team selection, D e Telecom Commercial capability Financial mot., Sponsor relations, Negotiation, Marketing & distribution Project Teams Processes Structure Motivation ProjectTearto Project Teams RESOURCES Organization Structure and Management CONTEMPORARY STRATEGY ANALYSIS Systems: The Fundamentals of Strategy tenth edition Implementation Robert M. Grant OUTLINE John Wiley & Sons Lid., 2019 Strategy Formulation and Strategy Implementation Chapter 6 The Fundamentals of Organizing Organizational Structure and Developing Organizational Capability Management Systems: Organizational Design The Fundamentals of Strategy Implementation Copyright 2019 John Wiley & Sons. Inc. 2 STRATEGY FORMULATION AND STRATEGY IMPLEMENTATION THE FUNDAMENTALS OF ORGANIZING The Strategic Planning Cycle Basic Tasks of Organizing: Cooperation and Coordination by High productivity requires specialization Corporate with Guidelines Corporate The efforts of specialized individuals need to be integrated. This creates two problems: The need for cooperation y Problem: he need for coordination Employees' goals * Owners' goals -Managing interdependency Operating Plan Performan Operating Budget Targets Organizational solutions. Control through hierarchical supervision Organizational solutions: performance incentives to a ales and directives . Organizational routine Performance Shared values to create common Review purpose . Mutual adjustment