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Chapter8 Strategy Implementation: Organization for action Strategy implementation Strategy implementation: process through the development of programs, budgets, and procedures. who will carry out the strategic plan? What must be done? How are they going to do what is needed? Who implements strategy Much more diverse group of people In most large, multi-industry corporation, the implementers will be everyone in the organization. Vice presidents Directors of division Plant managers Project managers Unit head Unless changes in mission, objectives, strategies, and policies and their important to the company are communicated clearly to operational managers, resistance can result. What must be done Program: statement of the activities or steps needed to accomplish a single use plan. The purpose of a program is to make the strategy action-oriented. Budget: statement of a corporation’s programs in dollar terms. Cost vs. benefit Procedures: a system of sequential steps or techniques that describe in detail how a particular task or job to be done. How is strategy to be implemented A change in corporate strategy will likely requires some sort of change in organizational structure and in the skills needed in particular positions. Strategy and structure Structure follows strategy Organizations follow a pattern of development from one kind of structural to another. Strategy, structure and the environment need to be closely aligned. Otherwise organizational performance will likely suffered. No agreement optimal organizational design Stages of corporate development Stage I: simple structure Entrepreneur tends to make all the important decisions. The greatest strength is flexibility and dynamism. Crisis of leadership Owner-manager Workers Stages of corporate development Stage II: functional structure Entrepreneur is replaced by a team of managers The strength lies in concentration and specialization in one industry. The weakness is that all of its eggs are in one baske
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