Implementation, Control, and Restructuring

StrategicDirection Strategy Formulation (corporate and business level) Strategy Implementation and Control Strategic Restructuring Internal and External Analysis

Functional Structure Organizing Framework Organizing Framework - Inputs such as marketing and production Degree of Centralization Degree of Centralization  High Competitive Environment Competitive Environment  Stable Growth Strategy Growth Strategy  Market Penetration (efficiency or quality, etc.) Organizing Framework Organizing Framework - Inputs such as marketing and production Degree of Centralization Degree of Centralization  High Competitive Environment Competitive Environment  Stable Growth Strategy Growth Strategy  Market Penetration (efficiency or quality, etc.) General Manager MarketingFinance Productio n HR

Product/Market Structure Organizing Framework Organizing Framework  Outputs such as product groups Degree of Centralization Degree of Centralization  Low Competitive Environment Competitive Environment  Dynamic with External Market Pressures Growth Strategy Growth Strategy  Market and/or Product Development (serving particular markets well) Organizing Framework Organizing Framework  Outputs such as product groups Degree of Centralization Degree of Centralization  Low Competitive Environment Competitive Environment  Dynamic with External Market Pressures Growth Strategy Growth Strategy  Market and/or Product Development (serving particular markets well) General Manager Administrative Departments Flight SimulatorsDesign Graphics DesignManufac.DesignManufac.

Project Matrix Structure Organizing Framework Organizing Framework  Inputs and Outputs Degree of Centralization Degree of Centralization  Decentralization with Sharing Competitive Environment Competitive Environment  Dynamic with Dual Pressures Growth Strategy Growth Strategy  Frequent New Product/Market Development Organizing Framework Organizing Framework  Inputs and Outputs Degree of Centralization Degree of Centralization  Decentralization with Sharing Competitive Environment Competitive Environment  Dynamic with Dual Pressures Growth Strategy Growth Strategy  Frequent New Product/Market Development General Manager Administrative Depts. Project A Project B MarketingProduction

Multidivisional  Moderate/low relatedness across divisions  Moderate/low need for coordination across divisions  Financial synergy may be available across divisions and some operational synergy (although limited) only to the extent that the divisions are related to each other  Moderate/low relatedness across divisions  Moderate/low need for coordination across divisions  Financial synergy may be available across divisions and some operational synergy (although limited) only to the extent that the divisions are related to each other CEO Corporate Staff Division VP

Strategic Business Unit  Groups (SBUs) of related businesses  Moderate need for coordination within each SBU; low need for coordination between SBUs  Financial synergy only across SBUs, potential exists for operational synergy within SBUs  Groups (SBUs) of related businesses  Moderate need for coordination within each SBU; low need for coordination between SBUs  Financial synergy only across SBUs, potential exists for operational synergy within SBUs CEO Corporate Staff SBU Manager Related Divisions SBU Staff

Corporate Matrix  Any number of businesses  Highly related businesses  Very high level of coordination required  Many opportunities exist for operational synergies (to reduce costs, gain access or share innovation)  Any number of businesses  Highly related businesses  Very high level of coordination required  Many opportunities exist for operational synergies (to reduce costs, gain access or share innovation) CEO and Staff Marketing Division 2Division 1 Operations R&D

Strategic Control System A system to support managers in - assessing whether the organization’s strategy is accomplishing goals as intended - assessing whether the organization’s strategy is accomplishing goals as intended - identifying areas needing attention - identifying areas needing attention A system to support managers in - assessing whether the organization’s strategy is accomplishing goals as intended - assessing whether the organization’s strategy is accomplishing goals as intended - identifying areas needing attention - identifying areas needing attention

Stakeholders and Environment Missions and Goals Strategies Implementation ( targets, tolerances, concurrent controls) Performance Comparison of Performance with Targets Assessment of Cause and Effect FEEDFORWARD CONTROL FEEDBACK CONTROL time

StrategicDirection Strategy Formulation (corporate and business level) Strategy Implementation and Control Strategic Restructuring Internal and External Analysis

Restructuring Approaches Refocusing Assets : Down-scoping Refocusing Assets : Down-scoping Retrenchment: Down-sizing Retrenchment: Down-sizing Chapter XI Reorganization Chapter XI Reorganization Leveraged Buyout (LBO) Leveraged Buyout (LBO) Changes to Organizational Design Changes to Organizational Design Refocusing Assets : Down-scoping Refocusing Assets : Down-scoping Retrenchment: Down-sizing Retrenchment: Down-sizing Chapter XI Reorganization Chapter XI Reorganization Leveraged Buyout (LBO) Leveraged Buyout (LBO) Changes to Organizational Design Changes to Organizational Design