mgt final

mgt final - CH. 8 8.1 WHAT IS STRATEGY IMPLEMENTATION?...

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CH. 8 8.1 WHAT IS STRATEGY IMPLEMENTATION? Strategy implementation is the sum total of the activities and choices required for the execution of a strategic plan o To begin the implementation process, consider 3 questions: 1. Who are the people who will carry out the strategic plan? 2. What must be done? 3. How are they going to do what is needed? 8.2 WHO IMPLEMENTS STRTAEGY? Those who implement strategy will probably be a much more diverse group of people than those who formulate it In most large, multi-industry corporations, the implementers will be everyone in the organization 8.3 WHAT MUST BE DONE? A program is the statement of the activities or steps needed to accomplish a single-use plan o Purpose of a program is to make the strategy action-oriented A budget is a statement of a corporation’s programs in dollar terms o After programs are developed, the budget process begins o Planning a budget is the last real check a corp has on the feasibility of its selected strategy Procedures (standard operating procedures, SOP) are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done One of the goals to be achieved in strategy implementation is synergy between and among functions and business units, which is why corporations commonly reorganize after an acquisition o Synergy can take place in 1 of 6 ways: Shared know-how, coordinated strategies, shared tangibles resources, economies of scale or scope, pooled negotiating power, and new business creation 8.4 HOW IS STRATEGY TO BE IMPLEMENTED? ORGANIZING FOR ACTION DOES STRUCTURE FOLLOW STRATEGY? Chandler proposed the following sequence of what occurs: o 1. New strategy is created o 2. New administrative problems emerge o 3. Economic performance declines o 4. New appropriate structure is invented o 5. Profit returns to its previous level In their early years, corps tend to have a centralized functional org structure that is well suited to producing and selling a limited range of products o To remain successful, this type of org must shift to a decentralized structure w/ several semiautonomous divisions (divisional structure)
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Strategy, structure, and the environment need to be closely aligned; otherwise, org performance will likely structure WHAT ARE THE STAGES OF CORPORATE DEVELOPMENT? Successful firms tend to follow a pattern of structural development, called stages of corporate development , as they grow and expand o Beginning w/ the simple structure of the entrepreneurial firm (in which everybody does everything), they usually (if they are successful) get larger and organize along functional lines w/ marketing, production, and finance departments WHAT IS STAGE 1? SIMPLE STRUCTURE Stage 1 is completely centralized in the entrepreneur, who founds the company to promote an idea (product or service).
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This note was uploaded on 03/09/2012 for the course MGMT 3830 taught by Professor Joey during the Summer '11 term at LSU.

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mgt final - CH. 8 8.1 WHAT IS STRATEGY IMPLEMENTATION?...

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