The Organizational Structure Of A Piece Of Music Is Its Fat and Slow Verses Slim and Agile Business Structure – Who Will Win? You Will Be Surprised

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Fat and Slow Verses Slim and Agile Business Structure – Who Will Win? You Will Be Surprised

For years, companies have been trying to strike the right balance between lean and agile organizations. In the 1970s, companies expanded their infrastructure whenever they entered international markets, but strategic decision-making was left exclusively to headquarters management. This organizational structure made the company fat, not fast. Today, the company’s structure is based on local management teams subordinated to regional management, which in turn is managed from headquarters. This structure facilitates decision-making and reduces bureaucracy while allowing full control of the home country headquarters.

Today, agility is important because it gives companies the ability to compete in global markets. In the near future, corporate headquarters or parent companies will no longer have complete control over their branches and subsidiaries, and will become smaller and more independent. However, this structure has not yet developed to the final stage of the formation of the opposite situation …

The world market is working in two parallel directions.

A. A highly competitive field that requires companies to be innovative, competitively priced, and service-oriented. All of this is because a company needs to be able to think quickly and have excellent execution processes to survive.

B. The last direction is the process of widening the gap between large and small companies. This is because large companies are gobbling up medium-sized companies to avoid competition. As part of this process, large companies will acquire or merge with mid-sized companies that fit their long-term strategic needs. As a result, large companies will grow and the number of medium ones will decrease. In addition, the number of small companies will increase because more people want to work independently. In this global market expansion, it will be difficult for a medium-sized company to survive for long.

Ten years ago, top executives were saying that if you’re not number one or two or three in your country, you need to change the direction of your business strategy, because it’s just not working. If you’re not number one, two, or three in the global market today, you need to do something else strategically. From food to plastics to minerals to cosmetics, large companies have already started this new thinking process by using and implementing support structures that allow them to control more than one market segment at once.

This market trend will create 5-10 large empires that will control most of the global market. Therefore, strategic and operational flexibility will not be as important as it is today.

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