STRATEGIC MANAGEMENT & BUSINESS POLICY 11TH EDITIONTHOMAS L. WHEELEN J. DAVID HUNGERCHAPTER 9 Strategy Implementation: Organizing for ActionCHAPTER 9 Strategy Implementation: Organizing for ActionCHAPTER 9 Strategy Implementation: Organizing for Action

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

--Strategy implementation through programs, budgets, and procedures

Strategy ImplementationKey Implementation Questions

Who carries out strategic plan?

What needs doing for alignment w/ strategy?

How is work coordinated?

Strategy ImplementationPrograms

Action oriented

Matrix of change

Feasibility

Sequence of execution

Location

Pace & nature of change

Stakeholder evaluations

Strategy ImplementationAchieving Synergy

Shared know-how

Coordinated strategies

Shared tangible resources

Strategy ImplementationAchieving Synergy

Economies of scale or scope

Pooled negotiating power

New business creation

Strategy ImplementationStructure follows strategy

New strategy is created

New administrative problems emerge

Economic performance declines

New appropriate structure is invented

Profit returns to previous level

Strategy ImplementationStages of Corporate Development

Stage I: Simple structure

Stage II: Functional structure

Stage III: Divisional structure

Stage IV: Beyond SBUs

Strategy ImplementationBlocks to Changing Stages

Loyalty to comrades

Task oriented

Single-mindedness

Working in isolation

Organizational Life Cycle

Changing Structural Characteristics of Modern Organizations

Strategy ImplementationAdvanced Types of Organizational Structures

Matrix

Temporary cross-functional task forces

Product/brand management

Mature matrix

Strategy ImplementationAdvanced Types of Organizational Structures

Network structure (virtual organization)

Cellular organization

Network Structure

Strategy ImplementationSix Sigma Cost saving programs for all types of manufacturers

Define

Measure

Analyze

Improve

Establish

Strategy ImplementationJob design (the way jobs are done) to implement strategy

Job enlargement

Job rotation

Job enrichment

Job characteristics model

Strategy ImplementationInternational Issues

MNCsInternational Strategic Alliances

Strategy ImplementationInternational Development Stages

Domestic companyDomestic company w/export divisionDomestic company w/intl divisionMNC w/multidomestic emphasisMNC w/global emphasis

Strategy ImplementationCentralization vs. Decentralization

Product-group structureGeographic-area structure

Geographic Area Structure

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