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STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION

CHAPTER 9 Strategy Implementation: Organizing for Action. STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION. THOMAS L. WHEELEN J. DAVID HUNGER. Strategy Implementation. --Sum total of activities & choices required for strategic plan execution --Strategy implementation through

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STRATEGIC MANAGEMENT & BUSINESS POLICY 11 TH EDITION

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  1. CHAPTER 9 Strategy Implementation: Organizing for Action STRATEGIC MANAGEMENT & BUSINESS POLICY11TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER

  2. Strategy Implementation • --Sum total of activities & choices required for strategic plan execution • --Strategy implementation through • Programs • Budgets • Procedures

  3. Strategy Implementation • Key Implementation Questions – • Who carries out strategic plan? • What needs doing for alignment w/ strategy? • How is work coordinated?

  4. Strategy Implementation • Programs – • Action oriented • Matrix of change • Feasibility • Sequence of execution • Location • Pace & nature of change • Stakeholder evaluations

  5. The Matrix of Change

  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. 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. Strategy Implementation • Stages of Corporate Development – • Stage I: Simple structure • Stage II: Functional structure • Stage III: Divisional structure • Stage IV: Beyond SBU’s

  9. Strategy Implementation • Blocks to Changing Stages – • Loyalty to comrades • Task oriented • Single-mindedness • Working in isolation

  10. Organizational Life Cycle

  11. Changing Structural Characteristics of Modern Organizations

  12. Strategy Implementation • Advanced Types of Organizational Structures – • Matrix • Temporary cross-functional task forces • Product/brand management • Mature matrix

  13. Strategy Implementation • Advanced Types of Organizational Structures – • Network structure (virtual organization) • Cellular organization

  14. Network Structure

  15. Strategy Implementation • Six Sigma – • Define • Measure • Analyze • Improve • Establish

  16. Strategy Implementation • Job design to implement strategy – • Job enlargement • Job rotation • Job enrichment • Job characteristics model

  17. Strategy Implementation • International Issues – • MNC’s • International Strategic Alliances

  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. Strategy Implementation • Centralization vs. Decentralization– • Product-group structure • Geographic-area structure

  20. Geographic Area Structure

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