STRATEGY & STRUCTURE

Anjana Pandey Pooja Mishra

201078 201079

ORGANIZATIONAL STRUCTURE

Organizational

structure

refers

to

the

way

that

an

organization arranges people and jobs so that its work can be performed and its goals can be met. Organizational Structure is critical both for a company and its employees. People should think very carefully about the organizational structure of the companies for which they work or of companies for which they intend to work.

STRATEGY

A strategy is a plan for interacting with the competitive

environment to achieve organizational goals.

A strategy chosen should be capable of supporting the firms competitive advantage

Michael Porter has given 4 types of strategic approaches: Lowcost leadership, Differentiation, focused low-cost & focused differentiation.

About Levis Strauss

VALUES & VISION
We believe that business can drive profits through principles, and that our values as a company and as individuals give us a competitive advantage. Empathy walking in other peoples shoes Originality being authentic and innovative Integrity doing the right thing Courage standing up for what we believe Headquarters in San Francisco Products: LEVIS, DOCKERS, SIGNATURE, DENIZEN

LEVIS GOES GLOBALthe case

Levis wanted to strongly increase its global presence as well as increase profit margins in the home market.

Levis aimed at making optimum utilization of resources and at

minimum cost. It plans to make use of Networks to improve the efficiency of the

supply & production, at the same time it has its core competencies
at US.

It aims to keep its strategy aligned to its structure & thus achieve competitive advantage over brands like Calvin Klein & Ralph Lauren

What is the STRATEGY?????

Levi Strauss pursued a transnational strategy. Levis aims at both reduction of costs and provide customer responsiveness. Related to low-cost leadership but in terms of Operating cost to maximize profits. Raw material, manufacturing & assembly operations are located around the world to take advantage of low cost.

Their focus is on lowering the operating cost & thereby achieving customer
satisfaction.

Transnational Strategy

Organizations competing on an international basis face choices in terms of resource allocation, the balance of authority between the central office and business units, and the degree to which products and services are customized in order to accommodate tastes and preferences of local markets. When employing a transnational strategy, the goal is to combine elements of global and multidomestic strategies. A transnational strategy allows for the attainment of benefits inherent in both global and multidomestic strategies. It is a management approach in which an organization integrates its global business activities through close cooperation and interdependence among its headquarters, operations, and international subsidiaries, and its use of

appropriate global information technologies

Network Structure is being used to pursue transnational strategy

Core competencies ( design) centralized in U.S

Strategic alliances with foreign companies to produce & distribute its products

A contract that states if the standards & requirements of LEVIS are not met the alliance partners are dropped out.

Network Structure in organization

The network structure is an extension of the process structure where each major process or its teams are distributed physically, geographically or into separate organizations. The geographically separated function report to a central hub.

Raw material

Design (U.S)
Manufacturing Distribution

Resource based approach Strategic Alliance with suppliers Thus, Levis restructured its organization through transnational strategy to meet customer satisfaction & also minimize its operating cost in high competition.

References

http://www.practical-management.com/Organization Development/Process-Vs-Network-Structure.html Organizational Theory, Design, And Change by Jones http://us.levi.com/home/index.jsp