1. Today: Strategy Implementation
Current Events
Chapter 8 & 9: Strategic Implementation
Assign Airborne Express Case
Team Time
WEBSITE:

2. Stages in Strategic Development
Understanding Strategy
Environmental Scanning / Industry Analysis
Internal Scanning / Organizational Analysis
Strategy Formulation
Strategy Implementation
Evaluation and Control

3. Strategy Implementation: Organizing for Action
Strategy Implementation is the process by which strategies and policies are put into action through the development of programs, budgets, and procedures.
Ask yourself:
Who are the people who will carry out the strategic plan?
What must be done?
How are they going to do what is needed?

4. Strategy Implementation: Organizing for Action
Managerial Components of Implementing Strategy
Leadership
Organizational and cultural “fit”
Objectives and incentives
Information and reporting
Communication and feedback
Evaluation and modification

5. How does structure follow strategy?
New strategy is created
New admin problems emerge
Economic performance declines
New appropriate structure is invented
Profit returns to its previous level -- or higher

6. Strategy Implementation: Organizing for Action
Stages of Corporate Development
Stage 1 -- Simple Structure
Stage II -- Functional Structure
Stage III -- Divisional Structure
How do they develop/emerge? What drives change?

7. Organizational Life Cycle
Source: Essentials of Strategic Management p.134

8. Strategy Implementation: Organizing for Action
Advanced Organizational Structures
Basic (simple, functional, divisional, SBU, conglomerate)
Matrix
Strengths and weaknesses
Why?
Network – virtual organization

9. Staffing for Success Selection and utilization of employees Hiring
Training
Managing
Succession planning
Sizing and culture-matching

10. Strategy Implementation: Organizing for Action
Five Principles for Redesigning Work:
Combine tasks to increase variety
Form natural work units and accountability
Establish “client” relationships to determine performance requirements
Vertically load jobs to increase responsibility
Provide open feedback channels

11. Leading
Motivating people to use their abilities and skills most effectively and efficiently to achieve organization objectives
MBO
TQM

12. Management by Objectives
Establishing and communicating organizational objectives
Setting individual objectives
Developing an action plan
Periodic review of performance

13. Total Quality Management
Better, less-variable quality
Quicker, less-variable response to customer need
Greater flexibility to meet shifting requirements
Lower cost through quality improvement and elimination of nonvalue-add work

14. TQM Implementation Intense focus on customer satisfaction
Customers are internal and external
Accurate measurement
Continuous improvement (Kaizen)
Work relationships based on trust and teamwork

15. Company Profile Presentations
Team presentation:
20 minutes of prepared content
10 minutes Q & A
Submit written profile at beginning of class
Strategic analysis of industry and company
Eight page write-up (plus exhibits)

16. Presentations -- March 7th
Hollywood Video
Team 3
Herman Miller
Team 5

17. Presentations -- March 14th
Krispy Kreme
Team 2
Vivendi/Universal
Team 4
Nike
Team 1

18. *** SEE AIRBORNE HANDOUT ONLINE ***
Airborne Express
How and why has the express mail industry structure evolved?
How has Airborne survived, and recently prospered, in its industry?
Quantify Airborne’s sources of advantage. (see hints on next slide)
What must Robert Brazier, Airborne’s President and COO, do in order to strengthen the company’s position?
*** SEE AIRBORNE HANDOUT ONLINE ***

19. Hints on Quantitative Analysis
It is often useful to analyze a company’s cost position relative to is rivals and to examine the willingness of customers to pay for the company’s products relative to competitors’. Compare the costs of an overnight letter shipped by Airborne Express to one shipped by Federal Express. Also, use qualitative analysis to compare customers’ willingness to pay.
To examine relative costs, start with the cost structure of a Federal Express overnight letter, given Ex. 3. Using information in the case and your understanding of what influences each cost item, estimate each of the items for Airborne Express.

20. Next Time: Evaluation and Control
Read Chapter 10
Profile Presentations
Analyze Airborne Express Case
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