Professional Documents
Culture Documents
successful
strategy
do
something
(strategy
management
stage
of
the
process
is
Comprehensive Strategic-Management
Model
Strategy Formulation
Strategy Implementation
action
Is
action
primarily
an
intellectual
process
primarily
an
operational
process
Focuses on effectiveness
Requires
Is
good
intuitive
Focuses on efficiency
and
analytical skills
Requires coordination among a
few individuals
coordination
many individuals
among
closing
facilities,
hiring
new
employees,
budgets,
developing
new
employee
benefits,
to
strategy
implementation
requires
shift
in
problems
can
arise
because
of
this
shift
in
Transfert of Responsibility
Strategist
s
Annual Objectives
Establishing annual objectives is a decentralized activity
that directly involves all managers in an organization.
Active participation in establishing annual objectives can
lead to acceptance and commitment. Annual objectives
are essential for strategy implementation because they:
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.
Resource Allocation
Resource allocation is a central management
activity that allows for strategy execution.
Strategic management enables resources
to be allocated according to priorities
established by annual objectives.
All organizations have at least four types of
resources that can be used to achieve
desired objectives:
1) Financial resources
2) Physical resources
3) Human resources
4) Technological resources
organizational
structure
may
become
Chandlers Strategy-Structure
Relationship
function,
such
as
finance/accounting,
production/operations,
research
and
Disadvantages of Functional
Structure
Structure
Capitalizes
on
specialization of business
and finance
3.
Minimizes
need
for
planning
for
Inadequate
thinking
Leads
problems
to
communication
Divisional Structure By
Geographic Area
1. Accountability is clear
2. Allows local control of local
situations
3.
Creates
career
development chances
4. Promotes delegation of
authority
5.
Leads
to
competitive
climate internally
6. Allows easy adding of new
products or regions
7. Allows strict control and
attention
to
products,
customers, and/or regions
Disadvantages of Divisional
Structure
1. Can be costly
2. Duplication of functional
activities
3.
Requires
a
skilled
management force
4. Requires an elaborate control
system
5. Competition among divisions
can become so intense as to
be dysfunctional
6. Can lead to limited sharing of
ideas and resources
7.
Some
regions/products/customers
may receive special treatment
who
executive officer.
reports
directly
to
the
chief
it
depends
upon
both
vertical
and
1.
2.
and
Costly
because
creates
more
Creates
dual
lines
of
budget
authority
resources
are
Creates
dual
sources
of
authority
and
reward/punishment
equipment/personnel/facilities
Functional
vertical
manager positions
accomplished
5.
excellent
Requires
6.
Creates
shared
reporting
7.
Requires
understanding
mutual
trust
and
Restructuring
Restructuring also called downsizinginvolves
reducing the size of the firm in terms of number
of employees, number of divisions or units, and
number
of
hierarchical
organizational
structure.
levels
in
the
Firms
often
firms
employ
and
proposed
developing
costs
during
a
for
alternative
strategy
staffing
implementing strategies.
plan
strategies
formulation
for
and
effectively