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IMPLEMENTATION
Business Strategies Operations and Production Issues Management Issues Research and Development Issues Information Systems Issues Marketing Issues Finance and Accounting Issues
IMPLEMENTATION
Putting Strategies Into ActionShift in responsibility to divisional and functional managers
CORPORATE STRATEGY
Decisions aboutwhat markets to compete in
Competing in thesemarkets via existingoperations, mergers,acquisitions, jointventures, divestitures
BusinessStrategy
IMPLEMENTATION
FORMULATION
Decisions abouthow to competein each market
Competing byleast cost, focus,differentiation
FunctionalStrategy
Decisions aboutthe actions neededwithin each functional area
Carry out strategy chosen for eachfunction
Why Implementation is so difficult
Strategy is often implicit in the head of the CEO and/or top management team
Strategy is developed in isolation Strategic thinking is not encouraged Outside consultants set direction and
strategies
Management Issues in Implementation
Corporate
Business
Functional
I. ANNUAL OBJECTIVES
II. POLICIES
III. RESOURCE ALLOCATION
IV. CONFLICT MANAGEMENT
Causes Consequencesof Conflict of Conflict
Interdependency Competition Different Goals and
Activities Personalities Scarce Resources
Negative Consequences Hostility Withdrawal
Positive Consequences Increased Motivation Increased Performance More creative thinking
ConflictLow High
Low
HighPerformance
Optimal Level of Conflict
How to Prevent/Reduce Conflict
Emphasize Organizational Goals Structure Tasks Promote Organizational Communication Separate dysfunctionally conflicting groups Apply rules and regulations Encourage confrontation and negotiation Use 3rd party consultants Rotate members among groups
How to Stimulate Conflict
Increase competition Increase uncertainty among groups Change reward systems
V. MATCHING STRUCTUREWITH STRATEGY
Types of Organizational Structure
Functional (Centralized) Divisional (Decentralized)
“M” form for multidivisional Geographic Product Customer Process
Strategic Business Unit (SBU) Matrix Others
VI. RESTRUCTURING
Downsizing, rightsizing, delayering Primary benefit sought is cost reduction Reducing employees, costs, levels, assets
VII. MANAGING RESISTANCE TO CHANGE
Implementation Issues -Other Functional Areas
Research and Development Issues
Emphasize product and/or process improvements Stress basic or applied research Be leaders or followers in R&D Develop robotics or manual type processes Spend a high, average, or low amount of money
on R&D Perform R&D within firm or contract out Use university or private sectors researchers
Information Systems Issues
Computer hardware and software facilitate global information consistency
All divisions self-sufficient, but compatible Support cross-functional integration Data and information should be available to any
department that has a demonstratable need. Security Upgrading hardware and software
Marketing Issues
Marketing Mix Product Place Promotion Price Market Segmentation Product Posititioning
Finance and Accounting Issues
Acquiring Capital to Implement Strategies EPS/EBIT
Pro Forma Financial Statements Income Statement
Financial Budgets Evaluating the Worth of a Business
VIII. Creating a Supportive Culture
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