1. Ch 7-1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 7 Implementing Strategies: Management & Operations Issues Strategic Management: Concepts & Cases 12 th Edition Fred David

2. Ch 7-2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

3. Ch 7-3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Formulation focuses on effectiveness Implementation focuses on efficiency Nature of Strategy Implementation Formulation vs. Implementation

4. Ch 7-4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Shift in responsibility Nature of Strategy Implementation Management Perspectives Divisional or Functional Managers Strategists

5. Ch 7-5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues Management Issues Resources Organizational Structure Restructuring Rewards/Incentives Annual Objectives Policies

6. Ch 7-6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues (cont’d) Management Issues Supportive Culture Production/Operations Human Resources Resistance to Change Natural Environment

7. Ch 7-7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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, divisional, and departmental)

8. Ch 7-8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues 1. Financial resources 2. Physical resources 3. Human resources 4. Technological resources Four Types of Resources

9. Ch 7-9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues  Conflict not always “bad”  No conflict may signal apathy  Can energize opposing groups to action  May help managers identify problems Managing Conflict

10. Ch 7-10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

11. Ch 7-11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues  Functional Structure  Divisional Structure  Strategic Business Unit Structure (SBU)  Matrix Structure Basic Forms of Structure

12. Ch 7-12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

13. Ch 7-13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

14. Ch 7-14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

15. Ch 7-15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues Restructuring  Downsizing  Rightsizing  Delayering

16. Ch 7-16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues Reengineering  Process management  Process innovation  Process redesign

17. Ch 7-17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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?

18. Ch 7-18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Natural Environment Perspective In Hiring, Do Companies Consider Environmental Training? 77% of corporate recruiters believe it’s important to hire students with an awareness of social and environmental responsibility Most schools do not incorporate environmental training in core curriculum Research suggest that business schools need to do more to prepare students

19. Ch 7-19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Creating a Strategy-Supportive Culture

20. Ch 7-20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

21. Ch 7-21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues Production/Operations Concerns – Production processes typically constitute more than 70% of firm’s total assets

22. Ch 7-22 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues Production/Operations Decisions  Plant size  Inventory/Inventory control  Quality control  Cost control  Technological innovation

23. Ch 7-23 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Management Issues Human Resource Strategic Responsibilities  Assessing staffing needs/costs  Developing performance incentives  ESOPs  Child-care policies  Work–life balance issues

24. Ch 7-24 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Benefits of a Diverse Workforce Improves corporate culture Improves employee morale Leads to a higher retention of employees Leads to easier recruitment of employees Decreases complaints and litigation Increases creativity Decreases interpersonal conflict

25. Ch 7-25 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

26. Ch 7-26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Benefits of a Diverse Workforce Enables the organization to move into emerging markets Improves client relations Increases productivity Improves the bottom line Maximizes brand identity Reduces training costs

27. Ch 7-27 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.