STRATEGIC MANAGEMENT CH 7 : IMPLEMENTING STRATEGIES-MANAGEMENT AND OPERATIONS ISSUES ( FEB UNILA)
- 1. CHAPTER 7 Felicia Monika • 1511011032 Astri Datmalem P. • 1511011051 ECONOMIC AND BUSINESS FACULTY UNIVERSITY OF LAMPUNG
- 2. CHAPTER OBJECTIVES 1. Explain why strategy implementation is more difficult than strategy formulation. 2. Discuss the importance of annual objectives and policies in achieving organizational commitment for strategies to be implemented. 3. Explain why organizational structure is so important in strategy implementation. 4. Compare and contrast restructuring and reengineering. 5. Describe the relationships between production/operations and strategy implementation. 6. Explain how a firm can effectively link performance and pay to strategies. 7. Discuss employee stock ownership plans (ESOPs) as a strategic management concept. 8. Describe how to modify an organizational culture to support new strategies. 9. Discuss the culture in Mexico and Japan. 10. Describe the glass ceiling in the United States.
- 4. The Nature of Strategy Implementation Strategy formulation and implementation can be contrasted in the following ways: Strategy implementation is primarily an operational process. Strategy formulation requires good intuitive and analytical skills. Strategy implementation requires special motivation and leadership skills. Strategy formulation requires coordination among a few individuals. Strategy implementation requires coordination among many individuals. Strategy formulation is positioning forces before the action. Strategy implementation is managing forces during the action. Strategy formulation focuses on effectiveness. Strategy implementation focuses on efficiency. Strategy formulation is primarily an intellectual process.
- 5. Implementing strategies requires such actions as : altering sales territories, adding new departments, closing facilities, hiring new employees, changing an organization’s pricing strategy, And so on.
- 7. Annual objectives are essential for strategy implementation (1) represent the basis for allocating resources; (2) are a primary mechanism for evaluating managers; (3) are the major instrument for monitoring progress toward achieving long-term objectives; (4) establish organizational, divisional, and departmental priorities.
- 8. As an instruments for strategy implementation
- 9. Resource Allocationa central management activity that allows for strategy execution. financial resources physical resources human resources Technological resources.
- 10. Managing Conflicta disagreement between two or more parties on one or more issues confrontation defusion avoidance
- 11. MATCHING STRUCTURE WITH STRATEGY functionaldivisional process divisional by geographic area matrix strategic business unit (SBU) divisional by product divisional by customer
- 12. RESTRUCTURING, REENGINEERING, AND E-ENGINEERING Restructuring concerned primarily with shareholder well-being rather than employee well-being. Reengineering concerned more with employee and customer well- being than shareholder well-being
- 13. Linking Performance and Pay to Strategies Dual Bonus Systems Profit Sharing Systems Gain Sharing System
- 14. Managing Resistance to Change Resistance to change can be considered the single greatest threat to successful strategy implementation. Three Approaches Force change strategy Educative change strategy Rational or self-interest change strategy
- 15. Formal statements of organizational philosophy, characters, creeds, materials used for recruitment and selection, and socialization Designing of physical spaces, facades, buildings Deliberate role modeling, teaching, and coaching by leaders Explicit reward and status system, promotion criteria Stories, legends, myths, and parables about key people and events
- 16. What leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises How the organization is designed and structured Organizational system and procedures Criteria used for recruitment, selection, promotion, leveling off, retirement, and “excommunicat ion” of people
- 17. Production/Operations Concerns When Implementing Strategies Production processes typically constitute more than 70 percent of a firm’s total assets. • Decision on : 1. Plant size 2. Inventory control 3. Quality Control 4. Cost Control 5. Technological innovation
- 18. Employee Stock Ownership Plans (ESOPs) Balancing Work Life and Home Life Benefits of a Diverse Workforce Corporate Wellness Programs
- 19. ESOP is a tax-qualified, defined-contribution, employee-benefit plan whereby employees purchase stock of the company through borrowed money or cash contributions
- 20. Balancing Work Life and Home Life Work/family strategies have become so popular among companies today that the strategies now represent a competitive advantage for those firms.
- 21. An organization can perhaps be most effective when its workforce mirrors the diversity of its customers.
- 22. Wellness programs provide counseling to employees and seek lifestyle changes to achieve healthier living
- 23. END OF PRESENTATION FELICIA MONIKA ASTRI DATMALEM P
- 24. Byee…