CHAPTER 9 Strategy Implementation Organizing for Action STRATEGIC

CHAPTER 9 Strategy Implementation: Organizing for Action STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER 1

Strategy Implementation --Sum total of activities & choices required for strategic plan execution --Strategy implementation through programs, budgets, and procedures 2

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

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

The Matrix of Change 5

Strategy Implementation Achieving Synergy – –Shared know-how –Coordinated strategies –Shared tangible resources 6

Strategy Implementation Achieving Synergy – –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 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 21