Copyright © 2011 Pearson Education Ch 8 -1 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Strategic Management: Concepts and Cases Arab World Edition Fred R. David Abbas J. Ali Abdulrahman Y. Al-Aali Chapter 8: Implementing Strategies: Management and Operations Issues Ch 8 -2 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Source: Adapted from Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988) 40. Ch 8 -3 Copyright © 2011 Pearson Education 3

Copyright © 2011 Pearson Education Nature of Strategy Implementation Formulation vs. Implementation Strategy implementation is different from strategy formulation Formulation Skills are.. Implementation Skills are.... Ch 8 -4 Copyright © 2011 Pearson Education 4

Divisional and Functional Managers Copyright © 2011 Pearson Education Nature of Strategy Implementation Management Perspectives Shift in responsibility Strategists Divisional and Functional Managers Ch 8 -5 Copyright © 2011 Pearson Education 5

Organizational Structure Copyright © 2011 Pearson Education Management Issues Annual Objectives Policies Management Issues Resources Organizational Structure Restructuring Rewards/Incentives Ch 8 -6 Copyright © 2011 Pearson Education 6

Production/Operations Copyright © 2011 Pearson Education Management Issues (cont’d) Resistance to Change Natural Environment Management Issues Supportive Culture Production/Operations Human Resources Ch 8 -7 Copyright © 2011 Pearson Education 7

Copyright © 2011 Pearson Education Annual Objectives Purpose of Annual Objectives Basis for resource allocation Mechanism for management evaluation Metric for gauging progress on long-term objectives Establish priorities (organizational, divisional, and departmental) Ch 7-8 Ch 8 -8 Copyright © 2011 Pearson Education 8

Copyright © 2011 Pearson Education Resource Allocation A central management activity A process of allocating resources consistent with priorities indicated by approved annual objectives Ch 7-9 Ch 8 -9 Copyright © 2011 Pearson Education 9

Copyright © 2011 Pearson Education Resource Allocation There are four types of resources: Financial resources Physical resources Human resources Technological resources Ch 7-10 Ch 8 -10 Copyright © 2011 Pearson Education 10

Copyright © 2011 Pearson Education Managing Conflict Conflict not always “bad” No conflict may signal apathy Can energize opposing groups to action May help managers identify problems Ch 7-11 Ch 8 -11 Copyright © 2011 Pearson Education 11

Copyright © 2011 Pearson Education Managing Conflict Approaches for Managing Conflicts Avoidance – ignoring the problem in hopes that the conflict will resolve itself Defusion – playing down differences between conflicting parties Confrontation – exchanging members of conflicting parties Ch 7-12 Ch 8 -12 Copyright © 2011 Pearson Education 12

Copyright © 2011 Pearson Education Ch 8 -13 Copyright © 2011 Pearson Education 13

Copyright © 2011 Pearson Education Matching Structure with Strategy Changes in strategy lead to changes in organizational Structure Structure largely dictates how objectives and policies will be established Structure dictates how resources will be allocated Ch 7-14 Ch 8 -14 Copyright © 2011 Pearson Education 14

Copyright © 2011 Pearson Education Matching Structure with Strategy Basic Forms of Structure Functional Structure Divisional Structure Strategic Business Unit Structure (SBU) Matrix Structure Ch 7-15 Ch 8 -15 Copyright © 2011 Pearson Education 15

Copyright © 2011 Pearson Education Ch 8 -16 Copyright © 2011 Pearson Education 16

Copyright © 2011 Pearson Education Ch 8 -17 Copyright © 2011 Pearson Education 17

Copyright © 2011 Pearson Education Ch 8 -18 Copyright © 2011 Pearson Education 18

Copyright © 2011 Pearson Education Restructuring, Reengineering, and E- Engineering Restructuring Downsizing Rightsizing Delayering Ch 7-19 Ch 8 -19 Copyright © 2011 Pearson Education 19

Copyright © 2011 Pearson Education Restructuring, Reengineering, and E- Engineering Reengineering Process management Process innovation Process redesign Ch 7-20 Ch 8 -20 Copyright © 2011 Pearson Education 20

Copyright © 2011 Pearson Education Linking Performance and Pay to Strategies Situation in the Arab World Most companies adopt a compensation system which primarily includes a base salary with annual rises. Increasingly in large Arab corporations there is a tendency to utilize pay systems similar to those found in western countries. Ch 7-21 Ch 8 -21 Copyright © 2011 Pearson Education 21

Copyright © 2011 Pearson Education Tests for Performance-Pay Plans Does the plan capture attention? Do employees understand the plan? Is the plan improving communication? Does the plan pay out when it should? Is the company or unit performing better? Ch 8 -22 Copyright © 2011 Pearson Education 22

Copyright © 2011 Pearson Education Production/Operations Concerns Production processes typically constitute more than 70% of firm’s total assets. Ch 7-23 Ch 8 -23 Copyright © 2011 Pearson Education 23

Copyright © 2011 Pearson Education Production/Operations Concerns (cont’d) Production/Operations Decisions Plant size Plant location Product design Choice of equipment Shipping and packaging Technological innovation Equipment and resource utilization Kind of tooling Inventory / Inventory control Quality control Cost control Use of standards Job specialization Employee training Ch 8 -24 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education Human Resource Concerns Human Resource Strategic Responsibilities Assessing staffing needs/costs Developing performance incentives Employee Stock-Ownership Plans (ESOPs) Child-care policies Work–life balance issues Ch 7-25 Ch 8 -25 Copyright © 2011 Pearson Education 25

Copyright © 2011 Pearson Education Ch 8 -26 Copyright © 2011 Pearson Education 26

Copyright © 2011 Pearson Education This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 8 -27 Copyright © 2011 Pearson Education