prentice hall, inc. © 20089-1 strategic management & business policy 12 th edition thomas l....
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Prentice Hall, Inc. © 2008 9-1
STRATEGIC MANAGEMENT & BUSINESS POLICY12TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
CHAPTER 9 Strategy Implementation: Organizing for Action
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Prentice Hall, Inc. © 2008 9-2
Strategy Implementation
--Sum total of activities & choices required for strategic plan execution
--Strategy implementation through• Programs•Budgets•Procedures
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Prentice Hall, Inc. © 2008 9-3
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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Prentice Hall, Inc. © 2008 9-4
Strategy Implementation
Programs –
–Action oriented
–Matrix of change•Feasibility•Sequence of execution•Location•Pace & nature of change•Stakeholder evaluations
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Prentice Hall, Inc. © 2008 9-5
The Matrix of Change
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Prentice Hall, Inc. © 2008 9-6
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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Prentice Hall, Inc. © 2008 9-7
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
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Prentice Hall, Inc. © 2008 9-8
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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Prentice Hall, Inc. © 2008 9-9
Strategy Implementation
Blocks to Changing Stages –
–Loyalty to comrades–Task oriented–Single-mindedness–Working in isolation
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Prentice Hall, Inc. © 2008 9-10
Organizational Life Cycle
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Prentice Hall, Inc. © 2008 9-11
Changing Structural Characteristics of Modern Organizations
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Prentice Hall, Inc. © 2008 9-12
Strategy Implementation
Advanced Types of Organizational Structures –
–Matrix•Temporary cross-functional task forces•Product/brand management•Mature matrix
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Prentice Hall, Inc. © 2008 9-13
Strategy Implementation
Advanced Types of Organizational Structures –
–Network structure (virtual organization)
–Cellular organization
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Prentice Hall, Inc. © 2008 9-14
Network Structure
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Prentice Hall, Inc. © 2008 9-15
Strategy Implementation
Six Sigma –
–Define–Measure–Analyze–Improve–Establish
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Prentice Hall, Inc. © 2008 9-16
Strategy Implementation
Job design to implement strategy –
–Job enlargement–Job rotation–Job enrichment–Job characteristics model
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Prentice Hall, Inc. © 2008 9-17
Strategy Implementation
International Issues –
–MNC’s–International Strategic Alliances
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Prentice Hall, Inc. © 2008 9-18
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
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Prentice Hall, Inc. © 2008 9-19
Strategy Implementation
Centralization vs. Decentralization–
–Product-group structure–Geographic-area structure
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Prentice Hall, Inc. © 2008 9-20
Geographic Area Structure