Ch 7-1 Chapter 7 Implementing Strategies: Management & Operations Issues

Ch 7-2 Formulation focuses on effectiveness Implementation focuses on efficiency Nature of Strategy Implementation Formulation vs. Implementation

Ch 7-3 Shift in responsibility Nature of Strategy Implementation Management Perspectives Division or Functional Managers Strategists

Ch 7-4 Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

Ch 7-5 Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

Ch 7-6 Management Issues Purpose of Annual Objectives --  Basis for resource allocation  Mechanism for management evaluation  Metric for gauging progress on long-term objectives  Establish priorities (organizational, division, & departmental)

Ch 7-7 Management Issues 1. Financial resources 2. Physical resources 3. Human resources 4. Technological resources 4 Types of Resources

Ch 7-8 Management Issues  Conflict not always “bad”  No conflict may signal apathy  Can energize opposing groups to action  May help managers identify problems Managing Conflict

Ch 7-9 New administrative problems emerge New strategy Is formulated Organizational performance declines Organizational performance improves New organizational structure is established Chandler’s Strategy-Structure Relationship

Ch 7-10 Management Issues  Functional Structure  Divisional Structure  Strategic Business Unit Structure (SBU)  Matrix Structure Basic Forms of Structure

Ch 7-11 Management Issues Restructuring  Downsizing  Rightsizing  Delayering

Ch 7-12 Management Issues Reengineering  Process management  Process innovation  Process redesign

Ch 7-13 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 7-14 Management Issues Production/Operations Concerns -- Production processes typically constitute more than 70% of firm’s total assets

Ch 7-15 Management Issues Production/Operations Decisions  Plant size  Inventory/Inventory control  Quality control  Cost control  Technological innovation

Ch 7-16 Management Issues Human Resource Strategic Responsibilities  Assessing staffing needs/costs  Developing performance incentives  ESOP’s  Child-care policies  Work-life balance issues

Ch 7-17 Diversity Issues Carly FiorinaHewlett-Packard49 yrs old Meg WhitmaneBay47 yrs old Andrea JungAvon Products45 yrs old Anne MulcahyXerox50 yrs old Marjorie MagnerCitigroup54 yrs old Betsy HoldenKraft Foods47 yrs old Mary SammonsRite Aid57 yrs old Women CEO’s in U.S (examples)