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41 federal organization
Gen Mgta form of organization structure, identified by Charles Handy, in which subsidiaries federate to gain benefits of scale. In a federal organization, the leader provides coordination and vision, and initiatives are generated from the component subsidiary organizations. Federal organization is one of the many ways in which organizations restructure in order to deal with the dilemmas of power and control. According to Handy, federal organization offers an enabling framework for autonomy to release corporate energy for people to do things in their own way, provided that it is in the common interest, and for people to be well informed so as to be able to interpret that common interest. Handy cites Royal Dutch Shell, Unilever, and ABB as exemplars of federalism. -
42 scenario planning
Gen Mgta technique that requires the use of a scenario in the process of strategic planning to aid the development of corporate strategy in the face of uncertainty about the future. Scenario planning was developed in a military context during the 1940s. Its use in a business context was pioneered at Royal Dutch Shell during the 1960s and increased after the 1972 oil crisis. The process of identifying alternative scenarios of the future, based on a variety of differing assumptions, can help managers anticipate changes in the business environment and raise awareness of the frame of reference within which they are operating. The scenarios are then used to assist in both the development of strategies for dealing with unexpected events and the choice between alternative strategic options.
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