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CHAPTER 9 Strategy Implementation: Organizing for Action
STRATEGIC MANAGEMENT & BUSINESS POLICY 11TH EDITION CHAPTER 9 Strategy Implementation: Organizing for Action CHAPTER 9 Strategy Implementation: Organizing for Action THOMAS L. WHEELEN J. DAVID HUNGER Prentice Hall 2006
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--Strategy implementation through programs, budgets, and procedures
--Sum total of activities & choices required for strategic plan execution --Strategy implementation through programs, budgets, and procedures Prentice Hall 2006
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Key Implementation Questions –
Strategy Implementation Key Implementation Questions – Who carries out strategic plan? What needs doing for alignment w/ strategy? How is work coordinated? Prentice Hall 2006
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Programs – Action oriented Matrix of change Feasibility
Strategy Implementation Programs – Action oriented Matrix of change Feasibility Sequence of execution Location Pace & nature of change Stakeholder evaluations Prentice Hall 2006
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Achieving Synergy – Shared know-how Coordinated strategies
Strategy Implementation Achieving Synergy – Shared know-how Coordinated strategies Shared tangible resources Prentice Hall 2006
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Achieving Synergy – Economies of scale or scope
Strategy Implementation Achieving Synergy – Economies of scale or scope Pooled negotiating power New business creation Prentice Hall 2006
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Structure follows strategy –
Strategy Implementation Structure follows strategy – New strategy is created New administrative problems emerge Economic performance declines New appropriate structure is invented Profit returns to previous level Prentice Hall 2006
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Stages of Corporate Development –
Strategy Implementation Stages of Corporate Development – Stage I: Simple structure Stage II: Functional structure Stage III: Divisional structure Stage IV: Beyond SBU’s Prentice Hall 2006
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Blocks to Changing Stages –
Strategy Implementation Blocks to Changing Stages – Loyalty to comrades Task oriented Single-mindedness Working in isolation Prentice Hall 2006
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Organizational Life Cycle
Prentice Hall 2006
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Changing Structural Characteristics of Modern Organizations
Prentice Hall 2006
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Advanced Types of Organizational Structures –
Strategy Implementation Advanced Types of Organizational Structures – Matrix Temporary cross-functional task forces Product/brand management Mature matrix Prentice Hall 2006
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Advanced Types of Organizational Structures –
Strategy Implementation Advanced Types of Organizational Structures – Network structure (virtual organization) Cellular organization Prentice Hall 2006
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Network Structure Prentice Hall 2006
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Cost saving programs for all types of manufacturers
Strategy Implementation Six Sigma – Cost saving programs for all types of manufacturers Define Measure Analyze Improve Establish Prentice Hall 2006
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Job design (the way jobs are done) to implement strategy –
Strategy Implementation Job design (the way jobs are done) to implement strategy – Job enlargement Job rotation Job enrichment Job characteristics model Prentice Hall 2006
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International Issues – MNC’s International Strategic Alliances
Strategy Implementation International Issues – MNC’s International Strategic Alliances Prentice Hall 2006
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International Development Stages– Domestic company
Strategy Implementation International Development Stages– Domestic company Domestic company w/export division Domestic company w/int’l division MNC w/multidomestic emphasis MNC w/global emphasis Prentice Hall 2006
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Centralization vs. Decentralization– Product-group structure
Strategy Implementation Centralization vs. Decentralization– Product-group structure Geographic-area structure Prentice Hall 2006
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Geographic Area Structure
Prentice Hall 2006
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