CHAPTER 9 Strategy
Implementation: Organizing for
Action
STRATEGIC MANAGEMENT & BUSINESS POLICY
11 TH EDITION
9-1

Strategy Implementation
--Sum total of activities & choices required for strategic plan execution
--Strategy implementation through programs, budgets, and procedures
9-2

Strategy Implementation
Key Implementation Questions –
– Who carries out strategic plan?
– What needs doing for alignment w/ strategy?
– How is work coordinated?
9-3

Programs –
– Action oriented
– Matrix of change
•Feasibility
•Sequence of execution
•Location
•Pace & nature of change
•Stakeholder evaluations
Strategy Implementation
9-4

Achieving Synergy –
– Shared know-how
– Coordinated strategies
– Shared tangible resources
Strategy Implementation
9-5

Achieving Synergy –
– Economies of scale or scope
– Pooled negotiating power
– New business creation
Strategy Implementation
9-6

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
9-7

Strategy Implementation
Stages of Corporate Development –
– Stage I: Simple structure
– Stage II: Functional structure
– Stage III: Divisional structure
– Stage IV: Beyond SBU’s
9-8

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

Organizational Life Cycle
9-10

Changing Structural Characteristics of Modern Organizations
9-11

Strategy Implementation
Advanced Types of Organizational
Structures –
– Matrix
•Temporary cross-functional task forces
•Product/brand management
•Mature matrix
9-12

Strategy Implementation
Advanced Types of Organizational
Structures –
– Network structure (virtual organization)
– Cellular organization
9-13

Network Structure
9-14

Strategy Implementation
Six Sigma –
Cost saving programs for all types of manufacturers
– Define
– Measure
– Analyze
– Improve
– Establish
9-15

Strategy Implementation
Job design (the way jobs are done) to implement strategy –
– Job enlargement
– Job rotation
– Job enrichment
– Job characteristics model
9-16

Strategy Implementation
International Issues –
– MNC’s
– International Strategic Alliances
9-17

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
9-18

Strategy Implementation
Centralization vs. Decentralization –
– Product-group structure
– Geographic-area structure
9-19

Geographic Area Structure
9-20