Transcript Chapter 1 The Nature of Strategic Management

Chapter 7
Implementing Strategies: Management &
Operations Issues
Strategic Management:
Concepts & Cases
12th Edition
Fred David
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Ch 7-1
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Ch 7-2
Nature of Strategy
Implementation
Formulation vs. Implementation
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Formulation focuses on effectiveness
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Implementation focuses on efficiency
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Ch 7-3
Nature of Strategy
Implementation
Management Perspectives

Shift in responsibility
Strategists
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Divisional or
Functional
Managers
Ch 7-4
Management Issues
Annual Objectives
Policies
Management
Issues
Resources
Organizational Structure
Restructuring
Rewards/Incentives
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Ch 7-5
Management Issues (cont’d)
Resistance to Change
Natural Environment
Management
Issues
Supportive Culture
Production/Operations
Human Resources
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Ch 7-6
Management Issues
Purpose of Annual Objectives –
Basis for resource allocation
Mechanism for management evaluation
Metric for gauging progress on long-term
objectives
Establish priorities (organizational,
divisional, and departmental)
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Ch 7-7
Management Issues
Four Types of Resources
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
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Ch 7-8
Management Issues
Managing Conflict
 Conflict not always “bad”
 No conflict may signal apathy
 Can energize opposing groups to
action
 May help managers identify problems
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Ch 7-9
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Ch 7-10
Management Issues
Basic Forms of Structure
 Functional Structure
 Divisional Structure
 Strategic Business Unit Structure (SBU)
 Matrix Structure
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Ch 7-11
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Ch 7-12
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Ch 7-13
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Ch 7-14
Management Issues
Restructuring
Downsizing
Rightsizing
Delayering
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Ch 7-15
Management Issues
Reengineering
Process management
Process innovation
Process redesign
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Ch 7-16
Tests for Performance-Pay Plans
Does the plan capture attention?
Do employees understand the plan?
Is the plan improving communication?
Does the plan pay out when it should?
Is the company or unit performing better?
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Ch 7-17
Natural Environment Perspective
In Hiring, Do Companies Consider Environmental Training?
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77% of corporate recruiters believe it’s important to hire
students with an awareness of social and environmental
responsibility
Most schools do not incorporate environmental training
in core curriculum
Research suggest that
business schools need to
do more to prepare students
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Ch 7-18
Creating a Strategy-Supportive Culture
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Ch 7-19
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Ch 7-20
Management Issues
Production/Operations Concerns
– Production processes typically
constitute more than 70% of firm’s total
assets
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Ch 7-21
Management Issues
Production/Operations Decisions
Plant size
Inventory/Inventory control
Quality control
Cost control
Technological innovation
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Ch 7-22
Management Issues
Human Resource Strategic Responsibilities
Assessing staffing needs/costs
Developing performance incentives
ESOPs
Child-care policies
Work–life balance issues
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Ch 7-23
Benefits of a Diverse Workforce
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Improves corporate culture
Improves employee morale
Leads to a higher retention of employees
Leads to easier recruitment of employees
Decreases complaints and litigation
Increases creativity
Decreases interpersonal conflict
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Ch 7-24
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Ch 7-25
Benefits of a Diverse Workforce
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Enables the organization to move into
emerging markets
Improves client relations
Increases productivity
Improves the bottom line
Maximizes brand identity
Reduces training costs
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Ch 7-26
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Ch 7-27