CHAPTER 9 Strategy

Implementation:
Organizing for Action

STRATEGIC MANAGEMENT & BUSINESS POLICY

THOMAS L. WHEELEN J. DAVID HUNGER

9-1
Stages of Strategic
Management

1-2
Corporate Strategy

7-3
Strategy Implementation

--Sum total of activities & choices

required for strategic plan execution

--Strategy implementation through

•Programs
•Budgets
•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

Action Plan

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 Resources and Competencies
• Strategy implementation depends on resources
and competencies possessed by the firm.
• These include:
– Money in certain amounts.
– Particular types of equipment.
– Specified numbers of people with …
– Certain skills, capabilities, and competencies
– Control and reporting systems.
 Seven Actions of Implementing
Strategy
• Allocate resources.
• Institute policies.
• Pursue best practices and continuous
improvement.
• Information and operating systems.
• Rewards to strategy and goals.
• Shape corporate culture.
• Apply leadership.
 Annual Objectives (Operational Goals)
Annual objectives benefits:
1.Represent the basis for allocating resources.

2.Main tool for evaluating managers.

3.Major tool for monitoring progress toward

achieving long-term objectives.

4.Establish organizational, divisional, and

departmental priorities. 7-9
 Policies
• Policies
– the means by which annual objectives will be
achieved.
– include guidelines, rules, and procedures
established to support efforts to achieve stated
objectives
– tool for strategy implementation.
– clarify what can and cannot be done in pursuit
of an organization’s objectives.
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 Resource Allocation
• Resource allocation
 Central management activity that allows for
strategy implementation.

• Strategic management enables resources to be

allocated according to priorities established by
annual objectives.

7-11
Types of Resources

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 Strategy Implementation Actions

• Overall strategy broken down into manageable

parts.
• Goals and deadlines set for accomplishment.
• Appropriate resources allocated.
• Right numbers and types of people assigned.
• Policies and procedures to guide their actions.
• One person assigned overall responsibility for each
part.
• Progress measured and tracked.
• Changes and adjustments when appropriate.
 Potential Implementation Problems

• Original plan poorly considered.

• Take more time than planned.
• Poor coordination of activities.
• Assigned employees lacked necessary skills.
• Insufficient allocation of resources.
• Uncontrollable external environmental factors.
• Poorly defined key tasks and activities.
Strategy Implementation

Achieving Synergy –

–Shared know-how
–Coordinated strategies
–Shared tangible resources

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Organizational Life Cycle

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Changing Structural Characteristics of Modern Organizations

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Strategy Implementation

Six Sigma –

– Define
– Measure
– Analyze
– Improve
– Control

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Strategy Implementation

Job design to implement strategy –

– Job enlargement
– Job rotation
– Job enrichment
– Job characteristics model

9-19
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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 Tutorial

Based on our discussion in previous

chapters, in groups, discuss the proposed
strategies (corporate, business and
functional) for your selected organization.

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