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Case Study Question 1 (12.5 marks):

Identify two organizing problems at De Luca Wines, and how they have impacted on
the business.
Note: Use theories and/or concepts from HBH222 to answer this question.
Suggested length 400 words (12.5 marks)
Dan and Bruno in business enterprise period do not notice the stability of enterprise,
besides, ignoring enterprise strategic adjustment needed investigation and
consultation. And direct advice for implementation. However, Enterprise culture is
long-term production management process of the formation and development of
gradually, with the enterprise characteristics enterprise management philosophy.
Namely, values and thinking mode, the outer core generated for enterprise behavior
criterion, ethics, custom acquisition and the traditional used the organic unity. It can
be divided into the spirit of enterprise culture, the enterprise system behavior culture
and enterprise image three levels material culture. And the enterprise strategy is to
show enterprise according to the change of environment, their resources and strength
to select suitable business areas and products, to create their own core
competitiveness, and through the differentiation in competition, with the world
economy globalization and globalization and subsequent international competition
intensifies, the requirements for enterprise strategy increasingly high. To realize the
goal with the track of totality, guidance plan, macro management category, it is
instructive, global, competitive, systematic, long-term six main features. The loss
caused by talents can ignore them, production and lower, introduce new technologies
not making full use of, resulting in interests losses. Cases, the introduction of
Microsoft system is customer rejection, employee training, opposed to using the new
system after let the attitude, belong to this case.
Enterprise reform and adjustment caused by a lack of communication mechanism, the
staff on the system change frequently and does not adapt to new facilities, the new
system does not understand, apply, mainly is not a lack of communication. What is
communication? Communication is issued by the leader of the established in an
organization based on values and culture of information which constitutes. And this
information for the major stakeholders such as: employees, customers, strategic
partner, shareholders and the media have significant influence.
Lack of communication, leadership is caused by employees of strongly dissatisfied,
even a personal attack, worker, difficult to communicate between opinion will make
people produce depressive, depressed psychology. So, not only affect worker mental
health, but also will seriously affect the normal work of the organization. Case
analysis can see, Employees overseas and domestic staff, the contradiction of a
defensiveness, and Dan and Bruno had accused and abuse, the exact show this

Case Study Question 2 (12.5 marks):

Why did the two organizing problems at De Lucca Wines develop, and how can they be

resolved? Use theories and/or concepts from HBH222 to answer this question.
Suggested length 400 words (12.5marks)
Wine business years are very good circumstances, Dan and Bruno returns information did not

cause the attention of Adrian, directly take consulting company advice, to reform, Not even

with employees of the meeting open a discuss,until the problem was serious circumstances

collective quantity counter plan. But the biggest obstacle to the strategic adjustment, but also

the cause of internal staff incongruous. If change the situation, can take the following

1) Composition the management teams. The group has part of the management staff and

workers to participate in use certain part of the time, the survey organization, and report to the

supreme leader department, the highest leadership will regularly publish their reports, some
important problems or "hot spots" problems within the organization communicate effectively.
Seek solutions, to strengthen internal communication.
2) With the enterprise culture advocate employee behavior, to the enterprise employee

behavior affect enterprise employee behavior modification not adapt to the development of

the enterprise strategy and rules and regulations, forming good corporate behavior rule, into

human value behavior concept. Implement culture and management mutual transformation,

push each other, and make enterprise culture construction enterprise's feet, let down each staff

more can understand enterprise culture.

3) Adjust enterprise strategy, in order to establish such a organization:
a) Second-ranking to the change of market demand make rapid response
b) Second-ranking internal cooperation organization intimacy
c) To make faster, better decisions
d) Provide employees more satisfying work experience, then bring employees incentive

degrees and productivity

Measures to achieve purpose: On the one hand help the leaders promote active behavior,

transforming issued a call to action. Communication of information can make people prepare

for change direction and tell organization members the reason for the change, these

information inspire people altogether, it tell people what to do and how to do it. Make the

organization members learn to embrace change, make the organization members to use their

own ability to bring certain opportunities for Organization. In addition to mobilize the

enthusiasm of employee participation in management, encourage employees’ selfless

dedication. Strengthening organization ability, create the environment stimulated. Stable

organization member's mind and improve relationships within the organization. In an

organization, whether internal departments and between departments, between departments

and employees, or between individuals and individuals, only such ability motivate staff

morale, promote the interpersonal harmony, improve the management efficiency. The more

important is to get accurate information, adjust good strategy development plan, make the

company continued profitability.

Summary: the enterprise organization is to solve the above problems occurred in the several

measures and goals.

Why is Strategy and Organisational

Structure Closely Inter-related


The effective integration of the strategy and organisational structure is the key to the
enterprise’s development. A successful enterprise lies in setting appropriate strategies
and to achieve its goals, at the same time, establishing proper organizational structure
to carry out its strategy (Allen, 2009). The relation between strategy and
organizational structure is very close, the object of the enterprise strategy and
organizational structure is closely inter-related, and they affect each other.
Enterprise's strategy decides enterprise's organizational structure, it is: What kind of
enterprise strategy, and there is the kind of organization structure. At the same time
the organizational structure in large affects enterprise's development objectives and
policies, and decides the enterprise all kinds of reasonable allocation of resources.
Also the organizational structure is the important guarantee for the implementation of
enterprise strategy. For the successful implementation of enterprise strategy,
companies often adjust their organizational structure. The design and adjustment of
enterprise organization should seek and choose structure modes which match the
enterprise management strategic objectives. In this essay, it will illustrate the
relationship of enterprise strategy and organizational structure firstly. Secondly, it will
discuss how enterprise strategy affects the organizational structure. And thirdly it will
discuss how a company to adjust its organizational structure based on the strategy.
Last is the theory of structure follows the strategy.
Main body

The relationship of enterprise strategy and organizational


The relationship of enterprise strategy and organization structure is affected basically

by the external economic development condition. (Raymond & Charles, 2003.)
Enterprise in different stages of development should have different strategy
objectives, and the organization structure should also adjust accordingly. Enterprise
organization structure adjustment is an important link of enterprise strategy
implementation; also it decides the resources allocation of the enterprise. So it can be
concluded that, the enterprise strategy and organization structure mutually affect each
other, and they are complementary (Neil, 2007).

Enterprise strategy’s influence on organizational structure

(1) The evolutionary stages of enterprise strategy

The development of enterprise has evident phases, and at different phases, enterprise
should have different strategies, different operation scales, so there exists different
structure development phases, strategies modes, scales and organizational structures.
And they are closely inter-related (Richard, 2009.)Firstly, it is the starting stage:
Enterprises often are some manufacturers or sellers, when perform a single function,
the simple linear structure is often seen, its characteristic is that the owner directly
controls every employee, and adjust the operation strategy based on different
conditions at any time, structural changes is also very simple (Karoly, 2007).
Secondly, as the developing of the scales, the coordination of each unit and the
professional requirements should be improved. The professional structural
organization which has the functions of coordination and management emerged. It
applies to enterprise whose products and services are single centralized and the
environment is steady (Jay, 2001). And thirdly, when the development of the
enterprise has got a degree of vertical integration and related diversification, and it has
comparative large scale and many kinds of operation modes, then the organizational
structure will show Semiautonomous status in this structure, each operation body is a
semi-independent branch, and it has relatively independent autonomy. (Allen, 2006)
This kind of half independent branch can be divided into division type, regional
type.etc, and various forms. The last stage is that: The development of enterprise
shows diversity in this phase, especially the unrelated diversification, at this time
enterprises often take independent business body s and functional departments
coexistence structure or group structure, This organization structure is characteristic
by that each operation body except the chief strategy and funding sources and use are
controlled by headquarters operates completely independent. (Douglas, 2008)
(2)Two aspects of organizational structure affected by enterprise strategy

Firstly: Different strategies require different business activities, thus affects the
position of management and the design of departments, a specific expression is when
the strategy shrinks or expands the business units or service department changes.
Secondly, Strategic focus changes may cause changes of the work of organization
focus, thus leading to changes of the important degree of various departments and
posts in the enterprise, and this will result in the relative adjustment of the
relationships among departments. Enterprise strategic change will result in
organizational structure change; the redesign of organizational structure will
contrarily promote the implementation of the enterprise strategy (Allen, 2009). The
change of enterprise strategy and organization structure is a dynamic process, isolated
design the strategic or organize structure is invalid and it cannot be successful, only
combine them as a organic whole and to investigate it in the intensively changeable
environment then it is possible to promote the development of the enterprise healthily
and continually.

Enterprise how to adjust the organizational structure

according to the strategy

Strategy is in the position of thinking level; organization structures could let

strategic get tactical support. Each enterprise should change their business plans
accordingly in different stages.
1. Identify the strategic objectives of enterprise and the medium or long term
development goals and plans
2. Clear in this enterprise profession situation (If is diversified enterprise, suggest
respectively discussing) Competitor, this enterprise position. Enterprise business
3. Enterprise internal power distribution, accredit way. Main leadership management
4. Senior managerial personnel's quality.
5. Enterprise at present and past strategic thinking and organizational structure
Strategy should have advanced and directive, organization structure should have
good adaptability and flexibility. The senior management personnel under the level
and ability of organization structure Settings or organization to play a key role in the
actual operation. Generally speaking, researchers can't afford the disproportion can
also lead to organizational structure of modern style and traditional methods coexist.
There is an example for enterprise to learn how to adjust their organizational
structure based on their strategy properly. It is the Haier Group, China’s famous
enterprise, and they have adjusted their structure successfully to meet their strategy
in the process to the world market. From this case enterprises should learn Haier’s
experience as follows: firstly, according to the market technology changes,
enterprise should constantly adjustment of product structure and industry structure;
Secondly attention a sharing of resources, the pursuit of synergies; Thirdly,
constantly adjust own organization structure, forms the enterprise's whole strategy;
Fourthly, In major areas effective deployment, and play core ability; Fifthly, from
the strategic importance of enterprise culture and fusion; Sixthly, attention brand
extension the valid range.

The theory of structure follows the strategy

In exploring the relationship between strategy and structure, Alfred Chandler (2003)
in its classic "strategy and structure", the strategy of structures with theories was
first proposed. The strategy and structure are given a series of book about DuPont,
gm, New Jersey standard oil company (and later became the Exxon Corporation)
and sears companies organizational structure evolution case study. On the basis of
these case studies, chandler concluded the changes in the structure of enterprise
organization, driven by strategic changes, and strategic changes and the external
condition with enterprises face link. Chandler theory can from the following two
Strategic bellwether and structure of the lag
1. Strategic bellwether. This is to show enterprise strategic changes faster than
organizational structure changes. This is because, enterprise once aware of internal
and external environment condition provides new opportunities and changes in
demand, the first will react to strategically, the growth of striving for economic
benefits (Allen, 2009).
2. Structure lag. This is to show enterprise organization structure changes often slow
pace of change in strategy. Especially in the period of economic rapidly developed.
From strategic bellwether and structure hysteresis can see, economic development,
the enterprise must not miss opportunity, to formulate and development adaptation
of the operational strategy and development strategy. Once the strategy formulation
make out, to recognize organization structure has certain hysteresis characteristics,
reaction cannot be rushed (Robert, 1996). However, for a long time lag of structural
responses will affect strategy implementation effect, enterprise should try to shorten
the time lag of structural responses, with the implementation of the strategy match
up with structure

The following strategy for structure to disagree

Despite Chandler relevant structures with strategic theory has been an empirical
study on the broad support, but the relationship between the structure and strategy
are still some different opinions.
(a) Structure influencing strategy
Hammond, t. h. think, structure affects strategy.
(b)Strategy and structure both from the interaction of the enterprise and environment
the evolving cumulative effect
Nelson,R. R. and S. G. Winter thinks, strategy and structure from the interaction of
the enterprise and environment the evolving cumulative effect, but not senior
managers and makes a complex restructuring decisions.
Enterprises with the connection between the environment, and generally called the
enterprise "structure" among individuals of contact, enterprises are to carry on the
long-term environmental stimuli, resulting in an adaptation of the cumulative effect.
Large-scale strategic change for enterprise is rare, currently, the decision relevant
strategy and structure in enterprise, which will be largely subject to the past
decisions (Douglas, 2010).


The change of enterprise strategy will result in organizational structure changes,

organizational structure and the redesign of the implementation of the strategy can
promote company corporate strategy and organization structure is a dynamic process
in isolation for strategic or organizational structure design is invalid, is also unlikely
to succeed only will both as a organic whole, in the heated changing environment to
examine, just may effectively promote the sustainable development of enterprises
(Alfred, 2003).What kind of strategy is what organization structure, as economic basis
must adapt to the superstructure is same, but we cannot measure an organizational
structure is good or bad, only can settle this organization in the current situation of the
pros and cons. However, as the development of enterprise, the company's
organizational structure will also be adjusted subsequently. In this essay, it has
discussed the relationship between strategy and organizational structure, they are
really inter-related. Enterprises who want to have a good future should understand
this, and adjust accordingly.

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