Question

What does it mean to say that strategy and structure have a reciprocal relationship? Example.

Answer 1

Yes strategy and structure have a reciprocal relationship.

The strategy and structure having a reciprocal relationship means that there is a interconnectedness between strategy formulation and strategy implementation. By reciprocal relationship we mean that when a strategy has been selected the structure follows it. If the strategy and structure are properly aligned it helps in performance improvement.

The structure of an organisation can influence current strategies as well as future strategies. The effect of strategy on structure is stronger than the effect of structure on strategy.

For example : the new structure of Mc Donalds can help on the successful implementation of new strategies. So, whenever a company thinks about changing it's strategies it should always have a structure in place to successfully implement these strategies.