Scribd
Upload
21 views

Chapter 7.ppt (1)

Uploaded by

Fatima Tanveer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
21 views

Chapter 7.ppt (1)

Uploaded by

Fatima Tanveer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 29

Chapter 7

Implementing Strategies: Management &


Operations Issues

Strategic Management:
Concepts & Cases
13th Edition
Fred David

Copyright © 2011 Pearson Education, Inc. Ch 7 -1


Publishing as Prentice Hall
Strategy Formulation vs.
Implementation
Strategy Formulation Strategy Implementation
 Positioning forces  Managing forces during

before the action the action


 Focus on effectiveness  Focus on efficiency

 Primarily intellectual  Primarily operational

 Requires good intuitive  Requires special

and analytical skills motivation and


leadership skills
 Requires coordination
 Requires coordination
among a few people among many people

Copyright © 2011 Pearson Education, Inc. Ch 7 -2


Publishing as Prentice Hall
Nature of Strategy Implementation
Management Perspectives

 Shift in responsibility

Divisional or
Strategists Functional
Managers

Copyright © 2011 Pearson Education, Inc. Ch 7 -3


Publishing as Prentice Hall
Management Issues Central to
Strategy Implementation
 Establish annual  Match managers to strategy
objectives  Develop a strategy-
 Formulate policies supportive culture
 Allocate resources  Adapt production/operations
 Alter existing processes
organizational structure  Develop an effective human
 Restructure & Reengineer resources function
 Revise reward & incentive  Downsize as needed
plans  Link performance & pay to
 Minimize resistance to strategies
change
Copyright © 2011 Pearson Education, Inc. Ch 7 -4
Publishing as Prentice Hall
Purpose of Annual Objectives

Basis for resource allocation


Mechanism for management evaluation
Major instrument for monitoring progress
toward achieving long-term objectives
Establishpriorities (organizational, divisional,
and departmental)

Copyright © 2011 Pearson Education, Inc. Ch 7 -5


Publishing as Prentice Hall
Annual Objectives

 Horizontal consistency of objectives

 Vertical consistency of objectives

Copyright © 2011 Pearson Education, Inc. Ch 7 -6


Publishing as Prentice Hall
Policies

 Policies set boundaries,


constraints, and limits on the kinds
of administrative actions that can
be taken to reward and sanction
behavior

Copyright © 2011 Pearson Education, Inc. Ch 7 -7


Publishing as Prentice Hall
Resource Allocation

Four Types of Resources

1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources

Copyright © 2011 Pearson Education, Inc. Ch 7 -8


Publishing as Prentice Hall
Managing Conflict

 Conflict not always “bad”


 Lack of conflict may signal lack of
concern
 Can energize opposing groups to action
 May help managers identify problems

Copyright © 2011 Pearson Education, Inc. Ch 7 -9


Publishing as Prentice Hall
Managing Conflict
 Approaches for managing and resolving
conflict
 Avoidance

 Defusing

 Confrontation

Copyright © 2011 Pearson Education, Inc. Ch 7 -10


Publishing as Prentice Hall
Matching Structure with Strategy

 Structure dictates how objectives


and policies will be established
 Structure dictates how resources

will be allocated
 Changes in strategy often lead to

changes in organizational structure

Copyright © 2011 Pearson Education, Inc. Ch 7 -11


Publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc. Ch 7 -12
Publishing as Prentice Hall
Basic Forms of Structure

 Functional Structure
 Divisional Structure
 Strategic Business Unit Structure
(SBU)
 Matrix Structure

Copyright © 2011 Pearson Education, Inc. Ch 7 -13


Publishing as Prentice Hall
Functional Structure

 Group tasks and activities by


business function

Copyright © 2011 Pearson Education, Inc. Ch 7 -14


Publishing as Prentice Hall
Functional Structure

Copyright © 2011 Pearson Education, Inc. Ch 7 -15


Publishing as Prentice Hall
Divisional Structure

 Canbe organized in one of four


ways:
 By geographic area
 By product or service

 By customer

 By process

Copyright © 2011 Pearson Education, Inc. Ch 7 -16


Publishing as Prentice Hall
Divisional Structure

Copyright © 2011 Pearson Education, Inc. Ch 7 -17


Publishing as Prentice Hall
Strategic Business Unit Structure
(SBU)
 Group similar divisions into
strategic business units and
delegate authority and
responsibility for each unit to a
senior executive who reports
directly to the chief executive
officer
Copyright © 2011 Pearson Education, Inc. Ch 7 -18
Publishing as Prentice Hall
Matrix Structure

 The most complex of all designs


because it depends upon both
vertical and horizontal flows of
authority and communication

Copyright © 2011 Pearson Education, Inc. Ch 7 -19


Publishing as Prentice Hall
Matrix Structure

Copyright © 2011 Pearson Education, Inc. Ch 7 -20


Publishing as Prentice Hall
Restructuring, Reengineering, and
E-engineering

Restructuring is called
Downsizing
Rightsizing
Delayering
Copyright © 2011 Pearson Education, Inc. Ch 7 -21
Publishing as Prentice Hall
Restructuring, Reengineering, and
E-engineering

Cornerstones of Reengineering
Decentralization
Mutual interdependence
Information sharing

Copyright © 2011 Pearson Education, Inc. Ch 7 -22


Publishing as Prentice Hall
Managing Resistance to Change

 Force change strategy


 Educative change strategy

 Rational or self-interest change

strategy

Copyright © 2011 Pearson Education, Inc. Ch 7 -23


Publishing as Prentice Hall
Creating a Strategy-Supportive Culture

1. Formal statements of organizational


philosophy
2. Design of physical spaces
3. Deliberate role modeling, teaching,
and coaching
4. Clear reward and status system
5. Stories, legends and myths.
Copyright © 2011 Pearson Education, Inc. Ch 7 -24
Publishing as Prentice Hall
Creating a Strategy-Supportive Culture

6. What leaders pay attention to


7. Leader reactions to critical incidents and
crises
8. Organizational design and structure
9. Organizational systems and procedures
10. Criteria for recruitment, selection,
promotion, retirement of people

Copyright © 2011 Pearson Education, Inc. Ch 7 -25


Publishing as Prentice Hall
Production/Operations Concerns

Production processes typically


constitute more than 70% of a
firm’s total assets

Copyright © 2011 Pearson Education, Inc. Ch 7 -26


Publishing as Prentice Hall
Production/Operations Decision
Examples
Plant size
Inventory / Inventory control
Quality control
Cost control
Technological innovation
Copyright © 2011 Pearson Education, Inc. Ch 7 -27
Publishing as Prentice Hall
Human Resource Concerns
Assessing staffing needs/costs
Vacations

Developing performance incentives


ESOP: Employees Stock Ownership
Program.
Work–life balance issues
Matching managers with strategy
Copyright © 2011 Pearson Education, Inc. Ch 7 -28
Publishing as Prentice Hall
Corporate Wellness Programs

 Wellness of employees has


become a strategic issue for many
firms

Copyright © 2011 Pearson Education, Inc. Ch 7 -29


Publishing as Prentice Hall

You might also like