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CHAPTER 9 Strategy Implementation: Organizing for Action. STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION. THOMAS L. WHEELEN J. DAVID HUNGER. Strategy Implementation. --Sum total of activities & choices required for strategic plan execution
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CHAPTER 9 Strategy Implementation: Organizing for Action STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER
Strategy Implementation --Sum total of activities & choices required for strategic plan execution --Strategy implementation through programs, budgets, and procedures
Strategy Implementation • Key Implementation Questions – • Who carries out strategic plan? • What needs doing for alignment w/ strategy? • How is work coordinated?
Strategy Implementation • Programs – • Action oriented • Matrix of change • Feasibility • Sequence of execution • Location • Pace & nature of change • Stakeholder evaluations
Strategy Implementation • Achieving Synergy – • Shared know-how • Coordinated strategies • Shared tangible resources
Strategy Implementation • Achieving Synergy – • Economies of scale or scope • Pooled negotiating power • New business creation
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
Strategy Implementation • Stages of Corporate Development – • Stage I: Simple structure • Stage II: Functional structure • Stage III: Divisional structure • Stage IV: Beyond SBU’s
Strategy Implementation • Blocks to Changing Stages – • Loyalty to comrades • Task oriented • Single-mindedness • Working in isolation
Strategy Implementation • Advanced Types of Organizational Structures – • Matrix • Temporary cross-functional task forces • Product/brand management • Mature matrix
Strategy Implementation • Advanced Types of Organizational Structures – • Network structure (virtual organization) • Cellular organization
Strategy Implementation • Six Sigma – • Define • Measure • Analyze • Improve • Establish
Strategy Implementation • Job design to implement strategy – • Job enlargement • Job rotation • Job enrichment • Job characteristics model
Strategy Implementation • International Issues – • MNC’s • International Strategic Alliances
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
Strategy Implementation • Centralization vs. Decentralization– • Product-group structure • Geographic-area structure