Strategy

Implementation
LESSON 7
OBJECTIVES
Assess the factors that may influence a company’s decision
1 to adopt a type of organization structure.

Track and evaluate the strategic management of intent,

objectives and strategy of an organization: this includes the
2 organization and management of adjustments and
improvements during the ongoing implementation of the
strategy.
4 Basic Types of Organizational Structure

Functional
Strategic Implementation
Product

Matrix
creation of appropriate organizational structure
Regional and process to execute the strategic plan.
Process
a sequence of related tasks to deliver an objective.

Cross-functional Working
involves teams with individuals who come from different
functional areas of an organization working together to
meet an objective.

McKinsey’s 7S Framework
conceptual framework of seven interrelated variables for
organizing change management.
Organizing Framework – most
critical aspect

Strategic Implementation
Structure is an organizing action defines and organizes processes and
into a cohesive and functional body.
procedures for the strategic management
of an enterprise.
4 Basic Types of Organizational
Form
• Functional Structure – the division of labor into
specialized operations, such as divisions specializing
in buying, manufacturing, marketing, finance, etc. It
is also known as “bureaucratic organizational
structure.”
• Product Structure – is also known as a “divisional or
multi-divisional or M-form organization.” It refers to an
organization structure by which the firm is separated into
several semi-autonomous units which are guided and
controlled by targets from the center.
 M-form allows each division to be
focused either on unique product or on a
distinct regional market.

Executives at headquarters are

responsible for the overall management
of the divisions.
Alfred Chandler (1962)
–is an economic theorist
–writer about the organization and strategy
–is the author of the quote, “If the structure does not support
the strategy, the result is inefficiency.”
 MATRIX
STRUCTURE
a combination of two or more different
kinds of organizational structures, such as
project management or functional
management.
 DISADVANTAGES:
• Unclear managerial and team roles
ADVANTAGES:
• • Slow decision-making process
Encourage collaboration
• • Too much work can cause overload
Increase efficiency
• Develop new skill sets
GEOGRAPHICAL
STRUCTURE BY REGION
- the process of creating a structure of
the organization based on different
geographic regions and locations
where the organization’s activities
operate.

- suitable for organizations having

expanded operations in different
geographic areas.
ADVANTAGES:
DISADVANTAGES:
• better customer service
• costly structure
• suitable for large
• chance of miscommunication
organization
• competition for resources
• flexible structure
MC DONALD’S GEOGRAPHIC STRUCTURE
PROCESS ORGANIZATION
an organization that is structured, organized, managed,
and measured around its primary business processes.

How important are the processes in business organization?

Effective business processes are the backbone of a

company, providing the organizational structure and
support needed to hold everything together.
Cross-Functional Structure
Cross-Functional Team
- a workgroup made up of employees from
different functional areas within an
organization who collaborate to reach a
stated objective.
Downsizing Downsizing means shrinking an organizational
structure for a specific purpose or desired outcome.
In most cases, the size of the organization
(represented through the number of employees) and the
operating costs are reduced most drastically, often
through employee layoffs and budget cuts.
The idea is for the senior management to consider
how to structure a company to its strategic intent if it is
to be reorganized from scratch.
The main objective of a company deciding to
downsize is to increase its overall peak efficiency and
productivity.
It many negate a significant organizational
benefit as it reduces the collective
corporate memory.

It also includes outsourcing services in

which internal task is shift to an external
organization. these are usually activity
relations that do not directly contribute to
profit and can be carried out more
effectively outside.

Some examples of outsourced services

includes recruitment, accounting and IT.
System and Systems
Thinking
Systems are formal structures, written
protocols, rules, and pro-certificates
that condition routines and standard
working methods.

A ‘systems’ way of thinking means

that people can see the whole picture,
while there is always a danger of sub-
optimization in a function-ally top-
down organization.
Strategy
Structure McKinsey’s 75 framework
Systems
Style
The concept was represented in their Bestselling book in
Staff
Search of Excellence (1982) by Tom Peters and Robert
Skills Waterman. The key thing about them is that they’re
Shared Values interlinked. Neither factor can be treated in solitary
confinement; they must function together.
Soft Sumantra Ghoshal and Christopher Bartlett
(1997) argued in favor of replacing what
they called hard elements – such as
Strategy strategy, structure, and system – with soft
ones, namely the purpose, method, and
people.
 Strategic Architecture
refers to networks and infrastructural components,
including a mixture of formal and informal
management structures and organizational culture,
organized to connect activities and influence actions.
Implementation is achieved through the
structure and control structures of an
organization, but it is widely accepted
that policy evolves through day-to-day
management during its execution.
END OF SLIDES
Ready for
“QUIZ”