Chandler (1962)

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Chandler (1962) - Strategy and Structure

Structure should be driven by strategy, for strategy is the formation of long-term goals and so the structure of a firm needs to reflect these goals.

Structures need to be changed and driven by market needs and changes.

He discusses the multi-divisional organisation (M-form), where executives are removed from mundane, operational activities to the control of the firm’s visions, which gives them the opportunity to think for the long-term.

Chandler also discusses the professionalisation of management, where firms require specialists to run their businesses.