Prentice Hall, Inc. © STRATEGIC MANAGEMENT & BUSINESS POLICY 12 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation: Organizing for Action

Prentice Hall, Inc. © Strategy Implementation --Sum total of activities & choices required for strategic plan execution --Strategy implementation through Programs Budgets Procedures

Prentice Hall, Inc. © Strategy Implementation Key Implementation Questions – –Who carries out strategic plan? –What needs doing for alignment w/ strategy? –How is work coordinated?

Prentice Hall, Inc. © Strategy Implementation Programs – –Action oriented –Matrix of change Feasibility Sequence of execution Location Pace & nature of change Stakeholder evaluations

Prentice Hall, Inc. © The Matrix of Change

Prentice Hall, Inc. © Strategy Implementation Achieving Synergy – –Shared know-how –Coordinated strategies –Shared tangible resources Economies of scale or scope Pooled negotiating power New business creation

Prentice Hall, Inc. © 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

Prentice Hall, Inc. © Strategy Implementation Stages of Corporate Development – –Stage I: Simple structure –Stage II: Functional structure –Stage III: Divisional structure –Stage IV: Beyond SBU’s

Prentice Hall, Inc. © Strategy Implementation Blocks to Changing Stages – –Loyalty to comrades –Task oriented –Single-mindedness –Working in isolation

Prentice Hall, Inc. © Organizational Life Cycle

Prentice Hall, Inc. © Changing Structural Characteristics of Modern Organizations

Prentice Hall, Inc. © Strategy Implementation Advanced Types of Organizational Structures – –Matrix Temporary cross-functional task forces Product/brand management Mature matrix

Prentice Hall, Inc. © Strategy Implementation Advanced Types of Organizational Structures – –Network structure (virtual organization) –Cellular organization

Prentice Hall, Inc. © Network Structure

Prentice Hall, Inc. © Strategy Implementation Six Sigma – –Define –Measure –Analyze –Improve –Establish

Prentice Hall, Inc. © Strategy Implementation Job design to implement strategy – –Job enlargement –Job rotation –Job enrichment –Job characteristics model

Prentice Hall, Inc. © Strategy Implementation International Issues – –MNC’s –International Strategic Alliances

Prentice Hall, Inc. © 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

Prentice Hall, Inc. © Strategy Implementation Centralization vs. Decentralization– –Product-group structure –Geographic-area structure

Prentice Hall, Inc. © Geographic Area Structure