CHAPTER 9 Strategy
Implementation:
Organizing for Action
STRATEGIC MANAGEMENT & BUSINESS POLICY
11TH EDITION
THOMAS L. WHEELEN
Prentice Hall, Inc. 2008
J. DAVID HUNGER
9-1
Strategy Implementation
--Sum total of activities & choices
required for strategic plan execution
--Strategy implementation through
programs, budgets, and procedures
Prentice Hall, Inc. 2008
9-2
Strategy Implementation
Key Implementation Questions
Who carries out strategic plan?
What needs doing for alignment w/ strategy?
How is work coordinated?
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9-3
Strategy Implementation
Programs
Action oriented
Matrix of change
Feasibility
Sequence of execution
Location
Pace & nature of change
Stakeholder evaluations
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9-4
The Matrix of Change
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9-5
Strategy Implementation
Achieving Synergy
Shared know-how
Coordinated strategies
Shared tangible resources
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9-6
Strategy Implementation
Achieving Synergy
Economies of scale or scope
Pooled negotiating power
New business creation
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9-7
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
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9-8
Strategy Implementation
Stages of Corporate Development
Stage I: Simple structure
Stage II: Functional structure
Stage III: Divisional structure
Stage IV: Beyond SBUs
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9-9
Strategy Implementation
Blocks to Changing Stages
Loyalty to comrades
Task oriented
Single-mindedness
Working in isolation
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9-10
Organizational Life Cycle
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9-11
Changing Structural Characteristics of Modern Organizations
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Strategy Implementation
Advanced Types of Organizational
Structures
Matrix
Temporary cross-functional task forces
Product/brand management
Mature matrix
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Strategy Implementation
Advanced Types of Organizational
Structures
Network structure (virtual organization)
Cellular organization
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9-14
Network Structure
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9-15
Strategy Implementation
Six Sigma
Define
Measure
Analyze
Improve
Establish
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9-16
Strategy Implementation
Job design to implement strategy
Job enlargement
Job rotation
Job enrichment
Job characteristics model
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9-17
Strategy Implementation
International Issues
MNCs
International Strategic Alliances
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Strategy Implementation
International Development Stages
Domestic company
Domestic company w/export division
Domestic company w/intl division
MNC w/multidomestic emphasis
MNC w/global emphasis
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Strategy Implementation
Centralization vs. Decentralization
Product-group structure
Geographic-area structure
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9-20
Geographic Area Structure
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9-21