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Restructuring for success

Ryan Cook examines organisational restructuring in the context of changes in the banking industry

It pays to attempt to anticipate required structural changes, rather than wait for the market to force a wholesale change

Tucked away in a dark corner of the BUSS3 specification is a topic titled ‘Competitive Organisational Structures’. At first you might think this is simply a rehash of the content you studied for BUSS2. However, an awareness of how organisational structure facilitates the delivery of strategic objectives is essential if you want to capture the top marks.

The focus at AS is very much on the type of any given organisational structure and the notion that the structure in place is a direct product of the management’s choice or preference. The suggestion is that organisational structure is governed by the internal choices of those responsible for managing the business. The concept of competitive organisational structures is much more concerned with the alignment and the need for an organisation’s internal structure to effectively reflect the external environment.

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