2.
4 Strategic Restructuring Plan
2.4.1 Organisational structure
NVIDIA employs a unique organizational framework, blending functional and matrix
structures to optimize its operations. The corporation is structured into functional departments,
encompassing critical areas like engineering, marketing, and sales. The functional departments
play a pivotal role in nurturing and enhancing NVIDIA's core competencies. For instance, the
engineering department spearheads the design and development of NVIDIA's product portfolio,
while the marketing department actively champions product promotion and sales. For matrix
structures, it will enhanced collaboration and communication between it departments or with the
others company. For example, if NVIDIA is developing a new GPU, engineers, software
developers, and product managers can work more closely together, sharing insights and aligning
their goals.
Therefore, Nvidia also optimized their business level strategies using porter’s competitive
strategy which is product differentiation. Nvidia follows a product differentiation business
strategy and prioritizes the performance of products over their costs. They employs a vertical
integration strategy, designing and developing its own GPUs and other hardware components via
fabless manufacturing. Overall, Nvidia’s business-level strategy is characterized by a focus on
technological and products leadership and a commitment to supporting a broad ecosystem of
developers and partners.
2.4.2 Reporting relationships
Reporting relationships are formal and hierarchical in nature. In Nvidia, reporting relationships
can be quite dynamic and complex, given the company's size and its diverse range of operations
in graphics processing. One person typically reports to the other person. Think of a boss and their
employee. In this type of working relationship, there is a clear chain of command, and one
person has a higher level of authority than the other. While there is a power imbalance in this
type of working relationship, it is intentional as it helps ensure work is completed, tasks are
delegated, goals are met, and problems are dealt with.
Departmental alignment
The corporate structures of Nvidia
The departmental alignment play a pivotal role in nurturing and enhancing NVIDIA's core
competencies. Nvidia should aligned organization which encourage each of its employees to
work within the scope of their capabilities. For instance, department of Chief Technology Officer
and department of SVP, Networking Products together in collaborations looking for new research
and technologists accelerating the evolution and application of GPUs in AI, robotics, self-driving
cars, high-performance computing, graphics, VR XR, augmented reality esports, computer
vision, and more. Develop new circuits, architectures, and design methods. Discover and develop
Invent innovative parallel computing and deep learning solutions, publish original research, and
even present their work at conferences and events. This can help to maximize the talents of each
team member and ensure they contribute as effectively as they can to achieve an organization's
goals.
Roles, responsibilities, and accountability mechanisms of Nvidia
1. Chief Executive Officer (CEO)
Roles:
o Oversee the overall vision and strategic direction of the company.
o Act as the primary point of communication between the board of directors and the
company's operations.
o Make high-level decisions about policy and strategy.
Responsibilities:
o Drive company growth and profitability.
o Ensure company resources are used efficiently and effectively.
o Represent the company in public and industry-specific forums.
Accountability Mechanisms:
o Regular reporting to the board of directors.
o Performance reviews based on company financials, market position, and
achievement of strategic goals.
2. Chief Financial Officer (CFO)
Roles:
o Oversee the company’s financial operations, including planning, risk
management, and financial reporting.
o Develop and implement financial strategies to support the company’s goals.
Responsibilities:
o Manage budgeting, forecasting, and investment strategies.
o Ensure accuracy in financial reporting and compliance with regulations.
o Liaise with investors and stakeholders regarding financial performance.
Accountability Mechanisms:
o Financial audits and performance reviews.
o Regular updates to the CEO and board on financial health and strategy.
