The Organization Structure Change Based On The Strategy Development In M Company

The strategy of an organization is quite important to a company’s survival and development when it is in the drastic competition against the global environment. The structure of an organization is the base which helps a company to implement the managing activity. The study on the relationship between strategy and organization structure will make a great contribution to implementing strategy in an organization, and it also helps achieve the overall target of a company. The relationship between strategy and organization structure determines that only when the strategy and the organization structure match, then the company could successfully archive the designed target. Conversely, an improper organization structure may turn into hindering the company’s development.The writer starts from the basic connotation of the strategy and organization structure, introducing and summarizing the related domestic and overseas researches, also investigates the dialectical relationship between strategy and organization structure which can simply be described as:Strategy is one of the most important elements to decide how an organization structure should be; the organization structure acts as the spread carrier of corporate culture and the object of enterprise strategy implementation, also having some kind of reaction towards the strategy.The outstanding point of this article is the combination of the classical theory with the actual business cases, which further discusses and proves the dialectical relationship between strategy and organizational structure. Since year2011, due to the slow recovery of the global economy and international trade, and the influence of capacity growth, the whole international shipping industry became floundering. Facing the uncertainty of the global economy and trade in post financial crisis era, if the shipping industry wants to overcome difficulties in the difficult operating environment, the companies need to change their strategy timely. This paper uses the undisputed leader in shipping industry, who owns the good reputation of "shipping magnate"-M Group Corporation ML Shipping Company as an example, describes that in the international shipping industry, how complex the situation is in both internal and external environment and summarizes the strategy changes which have been made in the recent years in order to adapt to the changes in the market environment of international shipping industry. The writer analyzes the changed organization structure along with changed strategy of the company in different time periods, explaining how organization structure helped the company to implement the strategy.Simultaneously, in consideration of the lag between strategy and organization structure, the article uses the Global Service Center under ML as an example to deep dive into the details, clarifies that how the organization structure get changed when the strategy of the whole company get developed. Then the article uses a specific case to show that if the organization structure does not go align with the company strategy, how the negative influence will affect the company. This specific case also bring up the importance and purpose of the establishment of organization structure utility appraisal system, by using which, we can timely use data to evaluate whether the organization structure is align with the company strategy or not.The paper is a supplementary to the classical theory and brings some references to the shipping companies in Mainland China.