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STRATEGIC MANAGEMENT
Lecture 12
Dr. John Kraft
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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
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3. 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
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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
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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
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6. 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.
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7. Implementing Strategy
Source: Publisher’s PowerPoint, Ch12-Slide 5
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Opening Case
New Look at Liz Claiborne
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9. Tall and Flat Structures
Figure 12.2
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Strategy in Action
Bob Iger Flattens Disney
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Strategy in Action
To Centralize of Decentralize
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Geographic Structure
Source: Publisher’s PowerPoint, Ch12-Slide 30
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Matrix Structure
Figure 12.10
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14. Product-Team Structure
Figure 12.11
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15. Multidivisional Structure
Source: Publisher’s PowerPoint, Ch13-Slide 3
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Strategy in Action
Macy’s Changes its Geographic Structure
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Running Case
Sam Walton Created Culture
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Closing Case
Strategy Implementation at Dell
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End of Lecture 12
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