When choosing strategies to gain a competitive advantage and increase performance, the company must develop ways to implement those strategies. The actions taken at the functional, business, and corporate levels to execute a strategic plan include putting quality improvement programs into place, changing product designs, and segmenting the market. Also, when implementing strategies, the organization must choose the best structure, culture, and control systems to put the strategies into action. A governance system is needed for the organization to act in a manner that is consistent with maximizing profitability, profit growth, and legal and ethical practices.
The Clorox Company has expanded over the year the company had divided its operations into several branches: Household, International, Lifestyle, and Cleaning. The Clorox Company has divided their products that they produce into product groups and categories. Each product group focused on satisfying the needs of their target customers or groups and is managed by its own team of managers. A company’s organizational structure is the framework of the various relationships within the organization. It sets the foundation for the common actions and functions of employees at every aspect of the company. Organizational structure is a key component in achieving superior efficiency, quality, innovation, and responsiveness to customers (Hill & Jones, 2008). The organizational structure of The Clorox Company is a product structure. This structure is appropriate for a company when it has multiple products in multiple market segments. The intent of product structuring is to break up a company’s growing product line into a number of smaller, more manageable subunits to reduce bureaucratic cost due to communication, measurements, and other problems (Hill & Jones, 2008).
The Clorox Company is also characterized as a tall structure. A tall structure is characterized as having several levels of hierarchy or a hierarchy of authority. (Hill & Jones, 2008). The reason The Clorox Company has a tall structure is because of the diversification of the company. The company operates in different markets that require different strategies. For Example, Clorox’s Lifestyle segment, Burt’s Bee’s, cannot operate or strategize as Clorox bleach or Clorox’s cleaning products would. As the company expands, the organizational structure grows taller. Although the structure of The Clorox Company is tall, management does not encounter a lot of problems due to leadership. The Clorox Company conducts quarterly reviews of idle and underutilized equipment, and reviews business plans for possible impairment indicators (Clorox, 2010)
The Clorox Company is structured so that there are regularly scheduled opportunities for management and employees to discuss problems that may arise. The Clorox Company is decentralized structure because of the power delegated to division’s...