CHAPTER 9 Strategy

Implementation: Organizing for

Action

STRATEGIC MANAGEMENT & BUSINESS POLICY

11TH EDITION
CHAPTER 9 Strategy Implementation: Organizing
THOMAS L. WHEELEN for Action
J. DAVID HUNGER

9-1
 Strategy Implementation

--Sum total of activities & choices

required for strategic plan execution

--Strategy implementation through

programs, budgets, and procedures

9-2
 Strategy Implementation

Key Implementation Questions –

–Who carries out strategic plan?

–What needs doing for alignment w/ strategy?

–How is work coordinated?

9-3
 Strategy Implementation

Programs –

–Action oriented

–Matrix of change

•Feasibility

•Sequence of execution

•Location

•Pace & nature of change

•Stakeholder evaluations
9-4
 Strategy Implementation

Achieving Synergy –

–Shared know-how

–Coordinated strategies

–Shared tangible resources

9-5
 Strategy Implementation

Achieving Synergy –

–Economies of scale or scope

–Pooled negotiating power

–New business creation

9-6
 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

9-7
 Strategy Implementation

Stages of Corporate Development –

–Stage I: Simple structure

–Stage II: Functional structure

–Stage III: Divisional structure

–Stage IV: Beyond SBU’s

9-8
 Strategy Implementation

Blocks to Changing Stages –

–Loyalty to comrades

–Task oriented

–Single-mindedness

–Working in isolation

9-9
Organizational Life Cycle

9-10
Changing Structural Characteristics of Modern Organizations

9-11
 Strategy Implementation

Advanced Types of Organizational

Structures –

–Matrix

•Temporary cross-functional task forces

•Product/brand management

•Mature matrix

9-12
 Strategy Implementation

Advanced Types of Organizational

Structures –

–Network structure (virtual organization)

–Cellular organization

9-13
Network Structure

9-14
 Strategy Implementation

Six Sigma –
Cost saving programs for all types of
manufacturers

–Define

–Measure

–Analyze

–Improve

–Establish

9-15
 Strategy Implementation

Job design (the way jobs are done) to

implement strategy –

–Job enlargement

–Job rotation

–Job enrichment

–Job characteristics model

9-16
 Strategy Implementation

International Issues –

–MNC’s
–International Strategic Alliances

9-17
 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

9-18
 Strategy Implementation

Centralization vs. Decentralization–

–Product-group structure
–Geographic-area structure

9-19
Geographic Area Structure

9-20