Copyright © Houghton Mifflin Company. All rights reserved. STRATEGIC MANAGEMENT Lecture 12 Dr. John Kraft Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Overview Strategy implementation How a company should create, use, and combine organizational structure, control systems, and culture to pursue strategies that lead to a competitive advantage and superior performance Source: Publisher’s PowerPoint, Ch12-Slide 2 Copyright © Houghton Mifflin Company. All rights reserved.
Implementing Strategy Through Organizational Design Organizational Design is the process of selecting the right combination of organizational structure, control systems, and culture to pursue a business model successfully. Organizational Structure Assigns employees to specific value creation tasks and roles To coordinate and integrate the efforts of all employees Strategic Control Systems A set of incentives to motivate employees To provides feedback on performance so corrective action can be taken Organizational Culture The collection of values, norms, beliefs, and attitudes shared within an organizations To control interactions within and outside the organization Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Implementing Strategy Through Organizational Structure, Control, and Culture Organizational structure Assigns employees to specific value creation tasks and roles and specifies how those are linked to increase efficiency, quality, innovation, and responsiveness to customers To coordinate and integrate the efforts of all employees Source: Publisher’s PowerPoint, Ch12-Slide 3 Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Implementing Strategy Through Organizational Structure, Control, and Culture (cont’d) Control system A set of incentives to motivate employees to increase efficiency, quality, innovation, and responsiveness to customers Provides feedback on performance so corrective action can be taken Organizational culture The collection of values, norms, beliefs, and attitudes shared within an organizations and that control interactions within and outside the organization Source: Publisher’s PowerPoint, Ch12-Slide 4 Copyright © Houghton Mifflin Company. All rights reserved.
Implementing Strategy Through Organizational Design Figure 12.1 Organizational structure, control, and culture shape people’s behaviors, values, and attitudes – and determine how they will implement an organization’s business model and strategies. Copyright © Houghton Mifflin Company. All rights reserved.
Implementing Strategy Source: Publisher’s PowerPoint, Ch12-Slide 5 Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Opening Case New Look at Liz Claiborne Copyright © Houghton Mifflin Company. All rights reserved.
Tall and Flat Structures Figure 12.2 Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Strategy in Action Bob Iger Flattens Disney Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Strategy in Action To Centralize of Decentralize Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Geographic Structure Source: Publisher’s PowerPoint, Ch12-Slide 30 Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Matrix Structure Figure 12.10 Copyright © Houghton Mifflin Company. All rights reserved.
Product-Team Structure Figure 12.11 Copyright © Houghton Mifflin Company. All rights reserved.
Multidivisional Structure Source: Publisher’s PowerPoint, Ch13-Slide 3 Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Strategy in Action Macy’s Changes its Geographic Structure Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Running Case Sam Walton Created Culture Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. Closing Case Strategy Implementation at Dell Copyright © Houghton Mifflin Company. All rights reserved.
Copyright © Houghton Mifflin Company. All rights reserved. End of Lecture 12 Copyright © Houghton Mifflin Company. All rights reserved.