Corporate Planning & Strategy Report - Organizing to Execute Strategy

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<ul><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 1/9</p><p>ORGANIZING TO EXECUTE</p><p>STRATEGY</p><p>REPORTED BY:</p><p>LEIZYL MORALES</p><p>MBA-GRADSTUDENT</p><p>PROFESSORIAL LECTURER:</p><p>MR ENRIQUE PINOS, CPA, MBA</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 2/9</p><p>CREATING OPERATING DIVISIONS THATMATCH STRATEGY</p><p>The simplest organization form that aids theexecutions of strategy is a series of operating</p><p>divisionsone for each strategic business-unit.</p><p>Each business divisions is semi-autonomousmaking</p><p>almost all its own operating decisions and also</p><p>largely self-contained-having direct supervision over</p><p>most of the activities necessary to carry out its</p><p>mission. It is like a single-line company, except that it</p><p>operates with the guidance, constraints, andassistance of its corporate owner</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 3/9</p><p>ADVANTAGES OF SEMIAUTONOMOUS,</p><p>SELF-CONTAINED BUSINESS DIVISION</p><p>1. The management of each division can be suited to itsstrategy.- By creating each division with relatively narrow focus,its total management design can be tailored to thatparticular purpose.</p><p>2. The narrower focus prompts adequate attention toexternal and internal threats and opportunities.</p><p>3. Prompt integrated response to threats andopportunities is more probable.</p><p>4. The morale of key people can be more easily tied todivision accomplishments.5. Control is more direct. The people accountable for</p><p>achieving strategy targets are few and clearly defined.</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 4/9</p><p>3 CONDITIONS ARE MET WHEN TO ESTABLISH ASEPARATE BUSINESS UNIT</p><p>1. A distinct cluster of products or services are sold</p><p>2. To an identifiable group of customers</p><p>3. In competition with a well-defined set of</p><p>competitors.</p><p>WHEN TO COMBINE OR SPLIT OFFBUSINESS-UNITS</p><p>WAYS OF DEALING WITH ORGANIZING OPERATINGDIVISIONS</p><p>1. Include all major functions in businessunit concept</p><p>2. Combine very small business units into related operatingdivision.</p><p>3. Use Product Managers, Not business-units, when a cleanbreak is not feasible.</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 5/9</p><p>ORGANIZING CORPORATE HEADQUARTERS TOSUPPORT STRATEGY</p><p>VITAL CORPORATE ACTIVITIES WHICH SHOULD BE PERFORMED</p><p>IN THE OPERATING DIVISIONS NOT TOBE USURPED BY THEHEADQUARTERS STAFF:</p><p>1. Serving as outside directors for existing divisions.</p><p>2. Planning the future corporate portfolio and supportive</p><p>moves.</p><p>3. Making acquisitions and divestments of businesses.4. Developing new ventures internally</p><p>5. Reinforcing corporate input strategy</p><p>In a small, diversified corporation two or three senior executives</p><p>may personally perform such of these activities as their strategyrequires. Very large corporations, on the other hand, may haveseparate officials or even offices for each. A closer look at what isinvolved will help in deciding how much superstructure isappropriate for a specific corporation.</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 6/9</p><p>Board of Directors Function for Existing Divisions</p><p>THE FOLLOWING INCLUDES THE DUTIES OF OUTSIDE DIRECTORS OF EACH</p><p>DIVISION</p><p>1. Ensuring that a sound strategy has been formulated, and that the</p><p>strategy is consistent with corporate guides for that division as todomain, risk levels, target results, and the like.</p><p>2. Selecting capable executives qualified to execute the approved</p><p>strategy.</p><p>3. Insisting that tough actions be taken when necessary, even though</p><p>such actions may personally unpleasant for the division executives.</p><p>4. Rewarding key people for outstanding performance, and ifnecessary removing key people for poor performance.</p><p>5. Making sure internal control system will provide early warning of</p><p>major detectable problems.</p><p>6. Giving final approval to very large transactions that will significantlyaffect the future division. (For example, ten percent of assets.</p><p>7. Serving as a sounding board; asking discerning questions; providing</p><p>objective advice.</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 7/9</p><p>PLANNING FUTURE CORPORATE PORTFOLIO AND SUPPORTIVE MOVES</p><p>CORPORATE STRATEGY INVOLVES:1. The choice of businesses to operate.</p><p>2. The corporate input strategy.3. The moves necessary to attain that preferred position.</p><p>BROADER INTEGRATED PLANNING HAS TO BE DONE AT CORPORATEHEADQUARTERS. DECISIONS ARE NEEDED WITH RESPECT TO:</p><p>1. Expansion or contraction of existing business2. New businesses to enter3. Charters for existing and new business-units, including the</p><p>objectives, values, and planning assumptions communicatedearly enough to aid lower-level planning.</p><p>4. Resource allocations- long and short term capital, perhaps keypersonnel or critical materials, permissible high technological orpolitical risks.</p><p>5. Results targets for both long-run and intermediate stages.</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 8/9</p><p>MAKING ACQUISITIONS AND DIVESTMENTS OF BUSINESSES</p><p>If a corporation decides to change its portfolio of business-units,Acquisitions or divestments are likely. Someone has to identify good</p><p>prospects for acquisition-or buyers for businesses to be sold-andsomeone has to engage in that often time-consuming and specializedprocess of negotiating a deal</p><p>REINFORCING CORPORATE INPUT STRATEGY</p><p>The headquarters organization of a diversified corporation shouldalways provide1. Senior Executives who can fill the outside director roles for each ofthe business units.</p><p>2. Executives plus a staff assistant who formulate the corporatestrategic plan3.Further diversification.4. Internal Entrepreneurship5. Corporate Input synergies, then additional provisions will be needed.</p></li><li><p>7/29/2019 Corporate Planning &amp; Strategy Report - Organizing to Execute Strategy</p><p> 9/9</p><p>THE END</p><p>THANK YOU!</p></li></ul>