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BusinessPolicyNotes12 - Chapter 12 Implementing Strategy in...

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Chapter 12 Implementing Strategy in Companies That Compete in aSingle Industry 300
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STRATEGIC MANAGEMENT Overview Lecture 12 Dr. John Kraft ·:·Strategy implementation • How a company should create, use, and combine organizational structure, control systems, and culture to pursue strategies that lead to a competitive advantage and superiorpedonnance 3 1 3 2 Implementing Strategy Through Organizational Design Organizational Design is the process of selecting the right combination of organizational structure, control systems, and culture to pursue a business model successfully. .:. Organizational Structure . Assigns employees to specific value creation tasks and roles ~ To coordinate and integra'" the effotts of all employees .:. Strategic Control Systems A set of Incentives to motivate employees ~ To plOvides feedback on petformanee so eotreetive action can be Isken .:. Organizational Culture The coIleetion of values, norms, beliefs, and attitudes shared within an organizations . e io e eo a hatia Implementing Strategy Through Organizational Structure, Control, and Culture ·:·Organizational structure • Assigns employees to specific value creation tasks and roles and specifies how those are linked to increase efficiency, quality, innovation, and responsiveness to customers • To coordinate and integrate the efforts of all employees 3 3 3 • Organizational s1rUeture, contro~ and culture shape people's behllViOf$,values, and eUitudes - and determine how they will implement an organizetion's business model and strategies. Agure 12.1 Implementing Strategy Through Organizational Design 3 5 .:.Control system • A set of incentives to motivate employees to increase efficiency, quality, innovation, and responsiveness to customers • Provides feedback on performance so corrective action can be taken .:.Organizational culture • The collection of values, norms, beliefs, and attitudes shared within an organizations and that control interactions within and outside the organization Implementing Strategy Through Organizational Structure, Control, and , 1 301
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Implementing Strategy Opening Case Opening Case .:. Nokia's New Product Structure NOKIA ~~ Tall and Flat Structures 3 • .:.Strategy Implementation at Dell Computer •. ~ Figure 12.2 3 • - •.. - II""'" -- ......... - 3 '0 Strategy in Action ·:·Union Pacific Decentralizes to Increase Customer Responsiveness 3 11 302 Strategy in Action ·:·Control at Cypress Semiconductor 3 '2 2
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Strategy in Action Geographic Structure ·:·How Ray Kroc Established McDonald's Culture M , .•McDonald'S, 01 I ' L __ I' .~~ .:..•. :..j! :~¥- i,,~~~ I=.J:-- iF ~~ ·:.C-'-:t- .,i".' .,_.. 3 13 3 ,. Matrix Structure Product-Team Structure Figure 12.11 Figure 12.10 3 15 --F"-"'-<'"~'" ~ -_.,..--- I 3 ,. Multidivisional Structure . ,. Strategy in Action ·:·Restructuring at Lexmark 3 17 --- I. ,.,-.,k • J •. ~.'-,-", "'- -- 3 303
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Closing Case ·:·Sam Walton's Approach to Implementing Wal-Mart's Strategy Film Real World .:. "How to Flatten Structure" Real World 3 ,.
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