Cross-unit competition for a market charter: The enduring influence of structure

Marketing strategists who operate in turbulent markets face a competitive l andscape marked by volatility and evolving market structures. As customer r equirements change, an organization that stays in alignment with its market s will form new business units or alter the market charters of existing bus iness units. In a longitudinal study, the authors traced the structural rea lignments that accompanied a Fortune-500 firm's entry into the Internet mar ket. As the charter moved from a freshly created unit to an established bus iness unit, the authors found support for the prediction that the former or ganizational structure will continue to shape the identity, beliefs, and so cial ties of managers. The study highlights the structural, social, and cog nitive factors that must be managed as corporate decision makers search for the best strategy-structure fit for an emerging market opportunity.