Return to search

Strategic change and its impact on the organisational structure of Pennypinchers (PTY) Ltd.: a case study

During the 1990’s many South African companies experienced the need to change and adapt. This was largely because of the environmental changes brought about by a new political regime. One of these changes was the exposure of South African companies to global competition. Because the South African business environment had remained relatively static during the 1980’s, many companies had no idea of how to manage change when it became necessary for economic survival. This inability led to the demise of many organisations. As change as a business concept covers a vast area, the main objective of this study was to isolate one area of change and examine it in a practical context. The chosen area was the relationship, if any, between strategy and organisational structure. The practical context chosen was an organisation, which had recently undergone strategic change. The research methodology for this study included the conducting of an intensive literature study, to determine the academic stance on the strategy/structure relationship. Various academic theories were examined to determine whether there was a relationship between the two concepts, and if so, what the relationship should be. This provided a background for the practical evaluation. Literary opinion showed consensus that there was indeed a relationship between the two; in fact the one was integral to the success of the other. That is, if an organisation chooses to consider adopting a change strategy, it should carefully consider its impact on organisational structure. To summarise, in a situation of change, structure should support strategy to ensure a successful transition. An empirical study was then conducted at Pennypinchers (Pty) Ltd , which had recently undertaken to implement a change strategy. The focus of the empirical study was the relationship between the chosen change strategy and organisational structure. The aim was to determine whether the strategy had an impact on organisational structure, and if so, whether the structure underwent During the 1990’s many South African companies experienced the need to change and adapt. This was largely because of the environmental changes brought about by a new political regime. One of these changes was the exposure of South African companies to global competition. Because the South African business environment had remained relatively static during the 1980’s, many companies had no idea of how to manage change when it became necessary for economic survival. This inability led to the demise of many organisations. As change as a business concept covers a vast area, the main objective of this study was to isolate one area of change and examine it in a practical context. The chosen area was the relationship, if any, between strategy and organisational structure. The practical context chosen was an organisation, which had recently undergone strategic change. The research methodology for this study included the conducting of an intensive literature study, to determine the academic stance on the strategy/structure relationship. Various academic theories were examined to determine whether there was a relationship between the two concepts, and if so, what the relationship should be. This provided a background for the practical evaluation. Literary opinion showed consensus that there was indeed a relationship between the two; in fact the one was integral to the success of the other. That is, if an organisation chooses to consider adopting a change strategy, it should carefully consider its impact on organisational structure. To summarise, in a situation of change, structure should support strategy to ensure a successful transition. An empirical study was then conducted at Pennypinchers (Pty) Ltd , which had recently undertaken to implement a change strategy. The focus of the empirical study was the relationship between the chosen change strategy and organisational structure. The aim was to determine whether the strategy had an impact on organisational structure, and if so, whether the structure underwent.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:10877
Date January 2003
CreatorsKemp, Leona
PublisherPort Elizabeth Technikon, Faculty of Management
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MBA
Formatxi, 115 leaves, pdf
RightsNelson Mandela Metropolitan University

Page generated in 0.0052 seconds