1. STRATEGIC MANAGEMENT & BUSINESS POLICY 13TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

2. Integration Managers
Prepare a competitive profile of the company in terms of its strengths and weaknesses
Draft a profile of what the ideal combined company should look like
Develop action plans to close the gap between actual and ideal
Establish training programs to unit the combined company and make it more competitive
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3. Successful Integration Managers
Deep knowledge of the acquiring company
Flexible management style
Ability to work in cross-functional teams
Willingness to work independently
Sufficient emotional and cultural intelligence to work in a diverse environment
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4. Staffing Follows Strategy
Training and development
Executive types
Dynamic industry expert
Analytical portfolio manager
Cautious profit planner
Turnaround specialist
Professional liquidator
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5. Selection and Management Development
Executive succession- replacing a key top manager
Succession planning
Identifying candidates below the top layer of management
Measuring internal candidates against external candidates
Providing financial incentives
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6. Identifying Abilities and Potential
Performance appraisal system identifies good performers with promotion potential
Assessment centers evaluates a person’s suitability for an advanced position
Job rotation- ensures employees are gaining a mix of experience to prepare them for future responsibilities
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7. Problems in Retrenchment
Downsizing the planned eliminated of positions or jobs
Can damage the learning capacity of an organization
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8. Successful Downsizing
Eliminate unnecessary work instead of making across the board cuts
Contract out work that others can do cheaper
Plan for long-run efficiencies
Communicate the reasons for actions
Invest in the remaining employees
Develop value added jobs to balance out job elimination
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9. International Issues in Staffing
Culture differences
Management styles
Human resource practices
Suboptimization
Communication and coordination
Lack of international management with experience
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10. Implementation involves leading and coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives
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11. Managing Corporate Culture
Strong cultures are resistant to change
Optimal culture supports mission and strategies
Change in strategy should be followed by change in culture
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12. Accessing Strategy-Culture Compatibility
Is the proposed strategy compatible with the company’s current culture
Can the culture be easily modified to make it more compatible with the new strategy
Is management willing and able to make major organizational changes and accept probable delays and a likely increase in costs
Is management still committed to implementing the strategy
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14. Managing Cultural Change Through Communication
CEO and top management communicated the strategic vision throughout the organization
Current performance was compared to competition and constantly updated
Vision was translated into key elements needed to accomplish the vision
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15. Managing Diverse Cultures Following an Acquisition
Methods of managing two different cultures
Integration- balanced give and take of cultures
Assimilation- domination of one culture over the other
Separation of the two cultures
Assimilation- disintegration of one culture resulting from pressure form the other to impose its culture and practices
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17. Action plan- what actions are going to be taken, by whom, during what time frame, and with what expected results
Specific actions to be taken to make the program operational
Dates to begin and end each action
Person responsible for carrying out each action
Person responsible for monitoring the timeliness and effectiveness of each action
Expected financial and physical consequences of each action
Contingency plans
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18. Importance of Action plans
Serve as a link between strategy formulation and evaluation and control
Specifies what needs to be done differently from current operations
Evaluation and control processes appraise performance and identify remedial actions
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21. Management by Objectives (MBO)- encourages participative decision making through shared goal setting and performance assessment based on achieving stated objectives
Establishing and communicating organizational objectives
Setting individual objectives
Developing an action plan to achieve objectives
Performance review (periodic and annual)
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22. Total Quality Management (TQM)- philosophy that is committed to customer satisfaction and continuous improvement
Objectives
Better, less variable quality of the product and service
Quicker less variable response in processes to customer needs
Greater flexibility in adjusting to customers’ shifting requirements
Lower cost through quality improvement and elimination of non-value added work
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23. Essential Ingredients
Intense focus on customer satisfaction
Internal as well as external customers
Accurate measurement of every critical variable in a company’s operations
Continuous improvement of products and services
New work relationships based on trust and teamwork
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24. Dimensions of National Culture
Power distance
Uncertainty avoidance
Individualism-collectivism
Masculinity-femininity
Long-term orientation
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25. What skills should a person have for managing a business
unit following a differentiation strategy? Why? What should
a company do if no one is available internally and the
company has a policy of promotion from within?
When should someone form outside the company be
hired to manage the company or one of its business units?
What are some ways to implement a retrenchment
strategy without creating a lot of resentment and conflict
with labor unions?
How can corporate culture be changes?
Why is an understanding of national cultures important
in strategic management?
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26. PowerPoint created by:
Ronald Heimler
Dowling College- MBA
Georgetown University- BS Business Administration
Adjunct Professor- LIM College, NY
Adjunct Professor- Long Island University, NY
Lecturer- California State Polytechnic University, Pomona, CA
President- Walter Heimler, Inc
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