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Prentice Hall, Inc. © 20069-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation:

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Presentation on theme: "Prentice Hall, Inc. © 20069-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation:"— Presentation transcript:

1 Prentice Hall, Inc. © STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation: Organizing for Action

2 Prentice Hall, Inc. © Strategy Implementation --Sum total of activities & choices required for strategic plan execution --Strategy implementation through programs, budgets, and procedures

3 Prentice Hall, Inc. © Strategy Implementation Key Implementation Questions – –Who carries out strategic plan? –What needs doing for alignment w/ strategy? –How is work coordinated?

4 Prentice Hall, Inc. © Strategy Implementation Programs – –Action oriented –Matrix of change Feasibility Sequence of execution Location Pace & nature of change Stakeholder evaluations

5 Prentice Hall, Inc. © The Matrix of Change

6 Prentice Hall, Inc. © Strategy Implementation Achieving Synergy – –Shared know-how –Coordinated strategies –Shared tangible resources

7 Prentice Hall, Inc. © Strategy Implementation Achieving Synergy – –Economies of scale or scope –Pooled negotiating power –New business creation

8 Prentice Hall, Inc. © 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 Prentice Hall, Inc. © 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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