Strategy Formulation vs. Implementation Positioning forces before the action Focus on effectiveness Primarily intellectual Requires good intuitive and analytical skills Requires coordination among a few people Strategy Implementation Managing forces during the action Focus on efficiency Primarily operational Requires special motivation and leadership skills Requires coordination among many people Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Managing Conflict Approaches for managing and resolving conflict Avoidance Defusion Confrontation Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Basic Forms of Structure Functional Structure Divisional Structure Strategic Business Unit Structure (SBU) Matrix Structure Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Functional Structure Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Can be organized in one of four ways: Divisional Structure Can be organized in one of four ways: By geographic area By product or service By customer By process Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Divisional Structure Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Restructuring is called Downsizing Rightsizing Delayering Restructuring, Reengineering, and E-engineering Restructuring is called Downsizing Rightsizing Delayering Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Creating a Strategy-Supportive Culture Formal statements of organizational philosophy Design of physical spaces Deliberate role modeling, teaching, and coaching Explicit reward and status system Stories, legends, myths, and parables Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Creating a Strategy-Supportive Culture What leaders pay attention to Leader reactions to critical incidents and crises Organizational design and structure Organizational systems and procedures Criteria for recruitment, selection, promotion, leveling off, retirement, and “excommunication” of people Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Production/Operations Concerns Production processes typically constitute more than 70% of a firm’s total assets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall