1. Fred R. David Prentice Hall Ch 7-1 Chapter Outline The nature of Strategy Implementation Annual Objectives Policies Resource Allocation

2. Fred R. David Prentice Hall Ch 7-2 Chapter Outline Managing Conflict Matching Structure with Strategy Restructuring, Reengineering, and E- Engineering Linking Performance and Pay to Strategies

3. Fred R. David Prentice Hall Ch 7-3 Chapter Outline Managing Resistance to Change Managing the Natural Environment Creating a Strategy-Supportive Culture

4. Fred R. David Prentice Hall Ch 7-4 Chapter Outline Production/Operations Concerns When Implementing Strategies Human Resource Concerns When Implementing Strategies

5. Fred R. David Prentice Hall Ch 7-5 Implementing Strategies: Management Issues Pretend that every single person you meet has a sign around his or her neck that says, “Make me feel important.” -- Mary Kay Ash, CEO of Mary Kay, Inc.

6. Fred R. David Prentice Hall Ch 7-6 Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation is positioning forces before the action –Implementation is managing forces during the action Implementing Strategies: Management Issues

7. Fred R. David Prentice Hall Ch 7-7 Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation focuses on effectiveness –Implementation focuses on efficiency Implementing Strategies: Management Issues

8. Fred R. David Prentice Hall Ch 7-8 Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation is primarily an intellectual process –Implementation is primarily an operational process Implementing Strategies: Management Issues

9. Fred R. David Prentice Hall Ch 7-9 Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation requires good intuitive and analytical skills –Implementation requires special motivation and leadership skills Implementing Strategies: Management Issues

10. Fred R. David Prentice Hall Ch 7-10 Strategy Analysis & Choice Contrasting strategy formulation and strategy implementation –Formulation requires coordination among a few individuals –Implementation requires coordination among many persons Implementing Strategies: Management Issues

11. Fred R. David Prentice Hall Ch 7-11 Strategy Analysis & Choice Strategy implementation – –Varies among different types and sizes of organizations Implementing Strategies: Management Issues

12. Fred R. David Prentice Hall Ch 7-12 Strategy Analysis & Choice Strategy implementation Actions – –Altering sales territories –Adding new departments –Closing facilities –Hiring new employees –Cost-control procedures –Changing advertising strategies –Building new facilities Implementing Strategies: Management Issues

13. Fred R. David Prentice Hall Ch 7-13 Formulation to Implementation transition – –Shift in responsibility From strategists to division and functional managersFrom strategists to division and functional managers Management Perspectives

14. Fred R. David Prentice Hall Ch 7-14 Management Issues Management Issues Resources Organizational structure Restructuring Rewards/Incentives Annual Objectives Policies

15. Fred R. David Prentice Hall Ch 7-15 Management Issues (continued) Management Issues Supportive culture Production/operations Human resources Downsizing Resistance to Change Managers & strategy

16. Fred R. David Prentice Hall Ch 7-16 Annual Objectives Decentralized activityDecentralized activity Involves all managers in the firmInvolves all managers in the firm

17. Fred R. David Prentice Hall Ch 7-17 Annual Objectives 1.Basis for allocating resources 2.Primary mechanism for evaluating managers 3.Major instrument for monitoring progress toward long-term objectives 4.Establish organizational, divisional, and departmental priorities

18. Fred R. David Prentice Hall Ch 7-18 Annual Objectives Horizontal consistency of objectivesHorizontal consistency of objectives Vertical consistency of objectivesVertical consistency of objectives

19. Fred R. David Prentice Hall Ch 7-19 Annual Objectives Objectives should state – –Quantity –Quality –Cost –Time

20. Fred R. David Prentice Hall Ch 7-20 Policies Policies facilitate solving recurring problems and guide the implementation of strategy

21. Fred R. David Prentice Hall Ch 7-21 Policies Policies set – –Boundaries –Constraints –limits

22. Fred R. David Prentice Hall Ch 7-22 Policies Example Issues requiring management policy -- –To offer extensive or limited management development workshops and seminars –To centralize or decentralize employee-training activities –To recruit through employment agencies, college campuses, and/or newspapers –To promote from within or hire from the outside –To establish a high- or low-safety stock of inventory –To buy lease, or rent new production equipment