CHAPTER 9 Strategy
Implementation:
Organizing for Action
STRATEGIC MANAGEMENT & BUSINESS POLICY
10TH EDITION
THOMAS L. WHEELEN
Prentice Hall, Inc. © 2006
J. DAVID HUNGER
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Strategy Implementation
--Sum total of activities & choices
required for strategic plan execution
--Strategy implementation through
programs, budgets, and procedures
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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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Strategy Implementation
Programs –
–Action oriented
–Matrix of change
•Feasibility
•Sequence of execution
•Location
•Pace & nature of change
•Stakeholder evaluations
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The Matrix of Change
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Strategy Implementation
Achieving Synergy –
–Shared know-how
–Coordinated strategies
–Shared tangible resources
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Strategy Implementation
Achieving Synergy –
–Economies of scale or scope
–Pooled negotiating power
–New business creation
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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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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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Strategy Implementation
Blocks to Changing Stages –
–Loyalty to comrades
–Task oriented
–Single-mindedness
–Working in isolation
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Organizational Life Cycle
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Changing Structural Characteristics of Modern Organizations
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Strategy Implementation
Advanced Types of Organizational
Structures –
–Matrix
•Temporary cross-functional task forces
•Product/brand management
•Mature matrix
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Strategy Implementation
Advanced Types of Organizational
Structures –
–Network structure (virtual organization)
–Cellular organization
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Network Structure
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Strategy Implementation
Six Sigma –
–Define
–Measure
–Analyze
–Improve
–Establish
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Strategy Implementation
Job design to implement strategy –
–Job enlargement
–Job rotation
–Job enrichment
–Job characteristics model
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Strategy Implementation
International Issues –
–MNC’s
–International Strategic Alliances
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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
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Strategy Implementation
Centralization vs. Decentralization–
–Product-group structure
–Geographic-area structure
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Geographic Area Structure
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