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1、Ch 7-1Chapter 7Implementing Strategies: Management & Operations IssuesStrategic Management: Concepts & CasesFred DavidCh 7-2Chapter OutlineThe Nature of Strategy ImplementationAnnual ObjectivesPoliciesCh 7-3Chapter Outline (contd)Resource AllocationManaging ConflictMatching Structure with StrategyCh
2、 7-4Chapter Outline (contd)Restructuring, Reengineering & E-EngineeringLinking Performance & Pay to StrategiesManaging Resistance to ChangeCh 7-5Chapter Outline (contd)Managing the Natural EnvironmentCreating a Strategy-Supportive CultureProduction/Operations Concerns When Implementing StrategiesCh
3、7-6Chapter Outline (contd)Human Resource Concerns When Implementing StrategiesCh 7-7The Nature of Strategy ImplementationThe strategic management process does not end when the firm decides what strategy or strategies to pursue.There must be a translation of strategic thought into strategic actionEve
4、n the most technically perfect strategic plan will serve little purpose if it is not implemented Implementing strategy affects an organization from top to bottomCh 7-8Formulation positions forces before the actionImplementation manages forces during the actionNature of Strategy ImplementationFormula
5、tion vs. ImplementationCh 7-9Formulation focuses on effectivenessImplementation focuses on efficiencyNature of Strategy ImplementationFormulation vs. ImplementationCh 7-10Formulation primarily an intellectual processImplementation primarily an operational processNature of Strategy ImplementationForm
6、ulation vs. ImplementationCh 7-11Formulation requires good intuitive & analytical skillsImplementation requires special motivational & leadership skillsNature of Strategy ImplementationFormulation vs. ImplementationCh 7-12Formulation requires coordination among a few individualsImplementation requir
7、es coordination among many individualsNature of Strategy ImplementationFormulation vs. ImplementationCh 7-13Varies among different types & sizes of organizationsNature of Strategy ImplementationStrategy ImplementationCh 7-14Shift in responsibilityNature of Strategy ImplementationManagement Perspecti
8、vesDivision or FunctionalManagersStrategistsCh 7-15Management IssuesManagementIssuesResourcesOrganizational structureRestructuringRewards/IncentivesAnnual ObjectivesPoliciesCh 7-16Management Issues (contd)ManagementIssuesSupportive CultureProduction/OperationsHuman ResourcesResistance to ChangeNatur
9、al EnvironmentCh 7-17Management IssuesAnnual Objectives - Decentralized activity- Directly involve all managers in the organizationCh 7-18Management IssuesPurpose of Annual Objectives -Basis for resource allocationMechanism for management evaluationMetric for gauging progress on long-term objectives
10、Establish priorities (organizational, division, & departmental)Ch 7-19Management IssuesConsistency of Annual Objectives -Across hierarchical levelsHorizontally consistentVertically consistentCh 7-20Management IssuesAnnual Objectives Should StateQuantityQualityCostTimeBe VerifiableCh 7-21Management I
11、ssuesPolicies - Facilitate the solving or recurring problems & guide implementation of strategyCh 7-22Management IssuesPolicies Establish -Boundaries-ConstraintsLimitsCh 7-23Management IssuesResource Allocation- Central management activity that allows for the execution of strategyCh 7-24Management I
12、ssuesManaging Conflict- Disagreement between two more parties on one or more issuesCh 7-25Management IssuesConflict not always “badNo conflict may signal apathyCan energize opposing groups to actionMay help managers identify problemsManaging ConflictCh 7-26Management IssuesAvoidanceDefusionConfronta
13、tionConflict Management & ResolutionCh 7-27Management IssuesMatching Structure / StrategyClassical view:- Changes in strategy Changes in structure Ch 7-28New administrativeproblems emergeNew strategyIs formulatedOrganizationalperformance declinesOrganizational performanceimprovesNew organizationalst
14、ructure is establishedChandlers Strategy-Structure RelationshipCh 7-29Management IssuesStructure dictates how objectives & policies will be establishedStructure dictates how resources will be allocatedStructure & StrategyOur view:Ch 7-30Management IssuesStructure can shape the choice of strategiesMo
15、re importantly, to determine what types of structural changes are needed to implement new strategies Structure & StrategyCh 7-31Management IssuesFunctional StructureDivisional StructureStrategic Business Unit Structure (SBU)Matrix StructureBasic Forms of StructureCh 7-32Management IssuesRestructurin
16、g (downsizing)- Reducing the size of the firm of employees, divisions, and/or units, of hierarchical levels to improve both efficiency and effectivenessCh 7-33Management IssuesRestructuringDownsizingRightsizingDelayeringCh 7-34Management IssuesReengineering- Reconfiguring or redesigning work, jobs,
17、& processes to improve cost, quality, service, & speed.Ch 7-35Management IssuesReengineeringProcess managementProcess innovationProcess redesignCh 7-36Management IssuesReengineering is characterized by many tactical (short- term, business-function-specific ) decisionsRestructuring is characterized b
18、y strategic (long-term, affecting all business functions) decisionsCh 7-37Management IssuesLinking Pay/Performance to Strategies- Pay for performance systemsCh 7-38Management IssuesLinking Pay/Performance to StrategiesDual bonus systemsProfit sharing systemsGain Sharing systemsCh 7-39Management Issu
19、esResistance to Change- Single greatest threat to successful strategy implementationCh 7-40Management IssuesResistance to Change- Raises anxiety; fear concerningEconomic lossInconvenienceUncertaintyBreak in status-quoCh 7-41Management IssuesChange StrategiesForce Change StrategyEducative Change Stra
20、tegyRational or Self-Interest Change StrategyCh 7-42Management IssuesNatural Environment- Wide appreciation for firms that “mend rather than “harm the environmentCh 7-43Management IssuesNatural Environment Environmental StrategiesDevelop/acquire “green businessesDivesting environmental-damaging businessLow-cost producer through waste minimization & energy conservationCh 7-44Management IssuesStrategy-Supportive Culture- Preserve, emphasize, & build upon aspects of existing c
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