Review Session

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Review Session

• Block 10 Strategy
• Implementation Organization

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Block 10 Organization

• What is Strategy Implementation?
• What Must be Done?
• How is Strategy Implemented?

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Implementation Problems

• More time than planned
• Unanticipated problems
• Activities ineffectively
• coordinated
• Crises deferred attention
• away
• Employees w/o capabilities
• Inadequate employee
• training
• Uncontrollable external
• factors
• Inadequate leadership
• Poorly defined tasks
• Inadequate information
• systems

Problems in Implementing Strategic plans
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Key Tasks of Implementation
What Must be Done?
Develop Programs
Set up Budgets
Define Procedures
Organization
Activities

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Programs

• Purpose is to make the strategy action oriented
• Compare proposed programs and activities with
  current programs and activities
• Feasibility, sequence of execution, location,
  pace and nature of change, stakeholder evaluation

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Budgets

• Planning a budget is the last real
• check a firm has on the
• feasibility of the selected
• strategy

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Procedures

• Standard Operating Procedures (SOPs)
• Detail the various activities that must be
  carried out to
• complete a corporations programs

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Achieving Synergies

• Synergy
• If the return on investment (ROI) of the combined
  
• businesses is greater than what the return would
  be if the
• unit was an independent business

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Different Forms of Synergy

• Examples
• Shared know-how
• Shared tangible resources
• Pooled negotiating power

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Strategy and Structure

• Structure follows Strategy
• Changes in corporate strategy lead to changes
• in organizational structure
• Stages of Corporate Development
• Simple Structure
• Functional Structure
• Divisional Structure
• Beyond SBUs - The Matrix

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Net Work Structure

• Non structure elimination of in-house
  business functions
• Termed virtual organization
• Useful in unstable environments
• Need for innovation and quick response

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Network Structure - Example
Network Structure Card Industry
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