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STRATEGIC MANAGEMENT & BUSINESS POLICY12TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 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•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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The Matrix of Change

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Strategy Implementation

Achieving Synergy –

–Shared know-how–Coordinated strategies–Shared tangible resources

Economies of scale or scopePooled negotiating powerNew 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 –

–Define–Measure–Analyze–Improve–Establish

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Strategy Implementation

Job design 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