1. CHAPTER 9 Strategy Implementation: Organizing for Action
STRATEGIC MANAGEMENT & BUSINESS POLICY 10TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
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2. --Strategy implementation through programs, budgets, and procedures
--Sum total of activities & choices required for strategic plan execution
--Strategy implementation through programs, budgets, and procedures
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3. Key Implementation Questions –
Strategy Implementation
Key Implementation Questions –
Who carries out strategic plan?
What needs doing for alignment w/ strategy?
How is work coordinated?
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4. Programs – Action oriented Matrix of change Feasibility
Strategy Implementation
Programs –
Action oriented
Matrix of change
Feasibility
Sequence of execution
Location
Pace & nature of change
Stakeholder evaluations
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5. The Matrix of Change
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6. Achieving Synergy – Shared know-how Coordinated strategies
Strategy Implementation
Achieving Synergy –
Shared know-how
Coordinated strategies
Shared tangible resources
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7. Achieving Synergy – Economies of scale or scope
Strategy Implementation
Achieving Synergy –
Economies of scale or scope
Pooled negotiating power
New business creation
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8. Structure follows strategy –
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
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9. Stages of Corporate Development –
Strategy Implementation
Stages of Corporate Development –
Stage I: Simple structure
Stage II: Functional structure
Stage III: Divisional structure
Stage IV: Beyond SBU’s
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