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Copyright2007PrenticeHallCh7-1Chapter7

ImplementingStrategies:Management&OperationsIssuesStrategicManagement:

Concepts&Cases11thEditionFredDavid

Copyright2007PrenticeHallCh7-2FormulationfocusesoneffectivenessImplementationfocusesonefficiencyNatureofStrategyImplementationFormulationvs.ImplementationCopyright2007PrenticeHallCh7-3ShiftinresponsibilityNatureofStrategyImplementationManagementPerspectivesDivisionor

Functional

ManagersStrategistsCopyright2007PrenticeHallCh7-4ManagementIssuesManagementIssuesResourcesOrganizationalstructureRestructuringRewards/IncentivesAnnualObjectivesPoliciesCopyright2007PrenticeHallCh7-5ManagementIssues(cont’d)ManagementIssuesSupportiveCultureProduction/OperationsHumanResourcesResistancetoChangeNaturalEnvironmentCopyright2007PrenticeHallCh7-6ManagementIssuesPurposeofAnnualObjectives--BasisforresourceallocationMechanismformanagementevaluationMetricforgaugingprogressonlong-termobjectivesEstablishpriorities(organizational,division,&departmental)Copyright2007PrenticeHallCh7-7ManagementIssuesFinancialresourcesPhysicalresourcesHumanresourcesTechnologicalresources4TypesofResourcesCopyright2007PrenticeHallCh7-8ManagementIssuesConflictnotalways“bad”NoconflictmaysignalapathyCanenergizeopposinggroupstoactionMayhelpmanagersidentifyproblemsManagingConflictCopyright2007PrenticeHallCh7-9NewadministrativeproblemsemergeNewstrategyIsformulatedOrganizationalperformancedeclinesOrganizationalperformanceimprovesNeworganizationalstructureisestablishedChandler’sStrategy-StructureRelationshipCopyright2007PrenticeHallCh7-10ManagementIssuesFunctionalStructureDivisionalStructureStrategicBusinessUnitStructure(SBU)MatrixStructureBasicFormsofStructureCopyright2007PrenticeHallCh7-11ManagementIssuesRestructuringDownsizingRightsizingDelayeringCopyright2007PrenticeHallCh7-12ManagementIssuesReengineeringProcessmanagementProcessinnovationProcessredesignCopyright2007PrenticeHallCh7-13TestsforPerformance-PayPlansDoestheplancaptureattention?Doemployeesunderstandtheplan?Istheplanimprovingcommunication?Doestheplanpayoutwhenitshould?Isthecompanyorunitperformingbetter?Copyright2007PrenticeHallCh7-14ManagementIssuesProduction/OperationsConcerns--Productionprocessestypicallyconstitutemorethan70%ofthefirm’stotalassetsCopyright2007PrenticeHallCh7-15ManagementIssuesProduction/OperationsDecisionsPlantsizeInventory/InventorycontrolQualitycontrolCostcontrolTechnologicalinnovationCopyright2007PrenticeHallCh7-16ManagementIssuesHumanResourceStrategicResponsibilitiesAssessingstaffingneeds/costsDevelopingperformanceincentivesESOP’sChild-carepoliciesWork-lifebalanceissuesCopyright2007PrenticeHallCh7-17DiversityIssuesCEOCompanyAgeMegWhitmaneBay49AndreaJungAvonProducts47AnneMulcahyXerox52MarjorieMagnerCitigroup56BetsyHoldenKraftFoods49AnnMooreAOLTimeWarner57WomenCEO’sinU.S.2005(examples)Copyright2007PrenticeHallCh7-18BenefitsofaDiverseWorkforceImprovescorporatecultureImprovesemployeemoraleLeadstoahigherretentionofemployeesLeadstoeasierrecruitmentofemployeesDecreasescomplaintsandlitigationIncreasescreativityDecreasesinterpersonalconflictCopyright2007PrenticeHallCh7-19BenefitsofaDivers

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