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STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION

THOMAS L. WHEELEN J. DAVID HUNGER

CHAPTER 9 Strategy Implementation: Organizing for Action

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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