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9-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation: Organizing for Action CHAPTER 9 Strategy Implementation: Organizing for Action CHAPTER 9 Strategy Implementation: Organizing for Action
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Page 1: Chapter 9

9-1

STRATEGIC MANAGEMENT & BUSINESS POLICY11TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 9 Strategy Implementation: Organizing for Action

CHAPTER 9 Strategy Implementation: Organizing for ActionCHAPTER 9 Strategy Implementation: Organizing for Action

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Strategy Implementation

--Sum total of activities & choices required for strategic plan execution

--Strategy implementation through programs, budgets, and procedures

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Strategy Implementation

Key Implementation Questions –

–Who carries out strategic plan?

–What needs doing for alignment w/ strategy?

–How is work coordinated?

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Strategy Implementation

Programs –

–Action oriented

–Matrix of change

•Feasibility

•Sequence of execution

•Location

•Pace & nature of change

•Stakeholder evaluations

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Strategy Implementation

Achieving Synergy –

–Shared know-how

–Coordinated strategies

–Shared tangible resources

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Strategy Implementation

Achieving Synergy –

–Economies of scale or scope

–Pooled negotiating power

–New business creation

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Strategy Implementation

Structure follows strategy –

–New strategy is created

–New administrative problems emerge

–Economic performance declines

–New appropriate structure is invented

–Profit returns to previous level

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Strategy Implementation

Stages of Corporate Development –

–Stage I: Simple structure

–Stage II: Functional structure

–Stage III: Divisional structure

–Stage IV: Beyond SBU’s

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Strategy Implementation

Blocks to Changing Stages –

–Loyalty to comrades

–Task oriented

–Single-mindedness

–Working in isolation

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Organizational Life Cycle

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Changing Structural Characteristics of Modern Organizations

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Strategy Implementation

Advanced Types of Organizational Structures –

–Matrix

•Temporary cross-functional task forces

•Product/brand management

•Mature matrix

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Strategy Implementation

Advanced Types of Organizational Structures –

–Network structure (virtual organization)

–Cellular organization

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Network Structure

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Strategy Implementation

Six Sigma –Cost saving programs for all types of manufacturers

–Define

–Measure

–Analyze

–Improve

–Establish

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Strategy Implementation

Job design (the way jobs are done) to implement strategy –

–Job enlargement

–Job rotation

–Job enrichment

–Job characteristics model

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Strategy Implementation

International Issues –

–MNC’s–International Strategic Alliances

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Strategy Implementation

International Development Stages–

–Domestic company–Domestic company w/export division–Domestic company w/int’l division–MNC w/multidomestic emphasis–MNC w/global emphasis

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Strategy Implementation

Centralization vs. Decentralization–

–Product-group structure–Geographic-area structure

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Geographic Area Structure