STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION

1. CHAPTER 9 Strategy Implementation: Organizing for Action STRATEGIC MANAGEMENT & BUSINESS POLICY11TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER

2. Strategy Implementation • --Sum total of activities & choices required for strategic plan execution • --Strategy implementation through • Programs • Budgets • Procedures

3. Strategy Implementation • Key Implementation Questions – • Who carries out strategic plan? • What needs doing for alignment w/ strategy? • How is work coordinated?

4. Strategy Implementation • Programs – • Action oriented • Matrix of change • Feasibility • Sequence of execution • Location • Pace & nature of change • Stakeholder evaluations

5. The Matrix of Change

6. Strategy Implementation • Achieving Synergy – • Shared know-how • Coordinated strategies • Shared tangible resources • Economies of scale or scope • Pooled negotiating power • New business creation

7. 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

8. Strategy Implementation • Stages of Corporate Development – • Stage I: Simple structure • Stage II: Functional structure • Stage III: Divisional structure • Stage IV: Beyond SBU’s

9. Strategy Implementation • Blocks to Changing Stages – • Loyalty to comrades • Task oriented • Single-mindedness • Working in isolation

10. Organizational Life Cycle

11. Changing Structural Characteristics of Modern Organizations

12. Strategy Implementation • Advanced Types of Organizational Structures – • Matrix • Temporary cross-functional task forces • Product/brand management • Mature matrix

13. Strategy Implementation • Advanced Types of Organizational Structures – • Network structure (virtual organization) • Cellular organization

14. Network Structure

15. Strategy Implementation • Six Sigma – • Define • Measure • Analyze • Improve • Establish

16. Strategy Implementation • Job design to implement strategy – • Job enlargement • Job rotation • Job enrichment • Job characteristics model

17. Strategy Implementation • International Issues – • MNC’s • International Strategic Alliances

18. 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

19. Strategy Implementation • Centralization vs. Decentralization– • Product-group structure • Geographic-area structure

20. Geographic Area Structure