1. Prentice Hall, Inc. © 20089-1 STRATEGIC MANAGEMENT & BUSINESS POLICY 12 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation: Organizing for Action

2. Prentice Hall, Inc. © 20089-2 Strategy Implementation --Sum total of activities & choices required for strategic plan execution --Strategy implementation through Programs Budgets Procedures

3. Prentice Hall, Inc. © 20089-3 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. © 20089-4 Strategy Implementation Programs – –Action oriented –Matrix of change Feasibility Sequence of execution Location Pace & nature of change Stakeholder evaluations

5. Prentice Hall, Inc. © 20089-5 The Matrix of Change

6. Prentice Hall, Inc. © 20089-6 Strategy Implementation Achieving Synergy – –Shared know-how –Coordinated strategies –Shared tangible resources Economies of scale or scope Pooled negotiating power New business creation

7. Prentice Hall, Inc. © 20089-7 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

8. Prentice Hall, Inc. © 20089-8 Strategy Implementation Stages of Corporate Development – –Stage I: Simple structure –Stage II: Functional structure –Stage III: Divisional structure –Stage IV: Beyond SBU’s

9. Prentice Hall, Inc. © 20089-9 Strategy Implementation Blocks to Changing Stages – –Loyalty to comrades –Task oriented –Single-mindedness –Working in isolation

10. Prentice Hall, Inc. © 20089-10 Organizational Life Cycle

11. Prentice Hall, Inc. © 20089-11 Changing Structural Characteristics of Modern Organizations

12. Prentice Hall, Inc. © 20089-12 Strategy Implementation Advanced Types of Organizational Structures – –Matrix Temporary cross-functional task forces Product/brand management Mature matrix

13. Prentice Hall, Inc. © 20089-13 Strategy Implementation Advanced Types of Organizational Structures – –Network structure (virtual organization) –Cellular organization

14. Prentice Hall, Inc. © 20089-14 Network Structure

15. Prentice Hall, Inc. © 20089-15 Strategy Implementation Six Sigma – –Define –Measure –Analyze –Improve –Establish

16. Prentice Hall, Inc. © 20089-16 Strategy Implementation Job design to implement strategy – –Job enlargement –Job rotation –Job enrichment –Job characteristics model

17. Prentice Hall, Inc. © 20089-17 Strategy Implementation International Issues – –MNC’s –International Strategic Alliances

18. Prentice Hall, Inc. © 20089-18 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

19. Prentice Hall, Inc. © 20089-19 Strategy Implementation Centralization vs. Decentralization– –Product-group structure –Geographic-area structure

20. Prentice Hall, Inc. © 20089-20 Geographic Area Structure