Discuss how this focus is reflected in the firms organizational structure (e.g., elements of its value chain, composition of top management team, allocation of resources).

Assignment: This assignment has two (2) primary parts:
Identify a firm and describe whether it tends to have a more exploration or exploitation focus (1/2 page, single-space, 12 pt Times New Roman, 1-inch margin)
Discuss how this focus is reflected in the firms organizational structure (e.g., elements of its value chain, composition of top management team, allocation of resources). (1/2 page, single-space, 12 pt Times New Roman, 1-inch margin)
Background: Long-term firm survival in changing environmental conditions requires firms to balance competing organizational learning perspectives of exploration or exploitation (March, 1991). Organizational learning is a process that involves converting a firms past experiences into knowledge, which can be then be leveraged to make intelligent changes that can affect the firms performance. Firms with an orientation for exploration tend to emphasize the creation of new ideas, and pursuit of novelty, such as entering new product-market domains or services. Firms with an orientation for exploitation tend to focus on refining existing products, services and technology (He & Wong, 2004). Most firms do both to some degree, and firms face a challenge in balancing between exploitation focused on seeking current revenue streams that can sustain the firm in the short-term, and exploration focused on seeking future revenue streams that can sustain the firm in the long-term when the environment is no longer the same as today. Exploration spends resources on activities that have a high chance of failure, or circumstances without a clear return on the investment. However, only considering exploitation risks being the best, but last buggy whip manufacturer. The challenge of balancing exploration and exploitation is compounded, because firms develop different competencies for either orientation (Jansen et al., 2009) that influence investment decisions, or what becomes a priority. Again, an exclusive focus on either mode of learning can be detrimental. For example, pure exploitation can contribute to product obsolescence, when the environment changes, and simply pursuing exploration can lead to a cascade of experiments that do not leverage existing knowledge (Weeks & Galunic, 2003).
A recognized way to balance demands for exploration and exploitation is by leveraging organizational structure within an organization. Specifically, organizations can retain some earnings to ensure that they have excess cash and have additional employees than are currently needed. Just like having considerable excess cash in your checking account at the bank, it can seem wasteful, but having these resources available can allow for slack when adapting to change or when new opportunities emerge (Bentley & Kehoe, 2019). Slack can also facilitate a firm being able to balance the competing orientations for exploration and exploitation.
This relates to managers of different business functions (e.g., finance, human resources, marketing, R&D, manufacturing, etc.) having different perspectives that influence how they interpret information (Dearborn & Simon, 1958; Sorenson, 1999). For example, product development functions might have tendency to emphasize exploration and accounting functions might emphasize exploitation. As a result, it is important to have managers from different functional departments working towards a similar strategy. For example, not having all functions represented in a firms decision-making is associated with organizational decline (DAveni, 1989) that can result from an overemphasis on one function. For example, one of the reasons behind General Electrics recent troubles was an over emphasis on finance (Colvin, 2018). Meanwhile, even though Apple has outsourced manufacturing, Lenovo (sells PCs) views retaining manufacturing and other functions as a source of its success (Chao, 2012). This reflects research suggesting that cross-functional teams facilitate innovation by allowing knowledge exchange (Carmeli & Gittel, 2009; Kessler & Chakrabarti, 1996). At a personal level, career progression as a manager may depend on having experience in multiple business functions, as it provides a more comprehensive view of a business (Calori, Johnson & Sarnin, 1994).

Related Posts

Quality Writing Features

Price Start $10
  • 24/7 Customer Support
  • All Subject Areas
  • Money-Back Guarantee
  • Timely Delivery
  • Originality report
  • Confidentiality guaranteed

Ordering Homework Writing Service

You can get our ideal online homework help services with four easy steps. All you have to do is inform us of your requirements. Immediately we will match with a specialist in your academic discipline. After that, we will track your order, review it to ensure it meets your requirements, and submit it to your email.


Submit Requirements

Fill in your assignment instructions on the order form


Writer match

Immediately you contact us for homework help; we will assign your assignment to an academic expert.


Quality review

We have a team of editors, who will thoroughly review your assignment, ensuring there are no errors before submission


Get Your Completed Paper

Once we have completed the assignment, we will deliver it to your account. Additionally, we will send a notification to your email.



Budget-friendly writing services



We don’t share our client’s information with a third party



We write every assignment from scratch

Amazing Homework Writing Features

Once you consult us for homework help online services, you will attest to why we are among the USA's best essay writing services.

Read on and find out some of the features that make our services superlative.

Free Homework Writing Services

Free plagiarism checker

You can confirm that the content you get is original for free using our plagiarism checker.

Free samples

We offer unlimited access to our essay homework samples.

Free title page and bibliography

Once you place an order, we format it accordingly without demanding additional charges.

Free unlimited revisions

We offer free unlimited revisions until your assignment is of your desired quality..

Free editing and proofreading

We have a team of specialized editors who review your assignment before submission.

Free customer support

You can track the progress of your homework for free.

Request for Homework Writing Service Today!

We have over 500 homework writing experts, ready and waiting to help you improve your writing skills