CHAPTER 9
Strategy Implementation:
Organizing for Action
STRATEGIC MANAGEMENT & BUSINESS POLICY
11TH EDITION
CHAPTER 9 Strategy Implementation: Organizing
THOMAS L. WHEELEN for Action
J. DAVID HUNGER
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
Strategy Implementation
Programs –
– Action oriented
– Matrix of change
• Feasibility
• Sequence of execution
• Location
• Place & nature of change
• Stakeholder evaluations
9-4
Strategy Implementation
Achieving Synergy –
– Shared know-how
– Coordinated strategies
– Shared tangible resources
9-5
Strategy Implementation
Achieving Synergy –
– Economies of scale or scope
– Pooled negotiating power
– New business creation
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
Strategy Implementation
Blocks to Changing Stages –
– Loyalty to comrades
– Task oriented
– Single-mindedness
– Working in isolation
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
– Control
9-15
Strategy Implementation
Job design (the way jobs are done) to
implement strategy –
– Job enlargement, combining tasks to give a
worker more of the same type of duties to perform.
– Job rotation
– Job enrichment, altering the jobs by giving the
worker more autonomy and control over activities.
– Job characteristics model, using task
characteristics to improve employee motivation
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
