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STRATEGY IMPLEMENTATION: ORGANIZING & STRUCTURE - Coggle Diagram
STRATEGY IMPLEMENTATION:
ORGANIZING & STRUCTURE
Strategy Implementation
Strategy implementation is the sum total of the activities and choices required for the execution of a strategic plan.
What Must Be Done?
Developing programs, budgets, and procedures
Programs and Tactics
Competitive Tactics
Timing Tactics: When to Compete
Market Location Tactics: Where to Compete
Budgets
Procedures
Achieving synergy
Synergy is said to exist for a divisional corporation if the return on investment of each division is greater than what the return would be if each division were an independent business.
How Is Strategy to Be Implemented? Organizing for Action
Structure follows strategy
New strategy is created.
New administrative problems emerge.
Economic performance declines.
New appropriate structure is created.
Economic performance rises.
Stages of corporate development
Stage I: Simple Structure
Stage II: Functional Structure
Stage III: Divisional Structure
Stage IV: Beyond SBUs
Blocks to Changing Stages
Organizational life cycle
The organizational life cycle describes how organizations grow, develop, and eventually decline.
Flexible Types of Organizational Structure
The matrix structure
Network structure-the virtual organization
Cellular/modular organization: a new type of structure?
Reengineering & Strategy Implementation
Six sigma
Designing jobs to implement strategy
Centralization versus decentralization