CHAPTER 6 STRATEGY IMPLEMENTATION Bộ môn Quản trị chiến lược 9/16/2022147 http //images google com vn/imgres?imgurl=http //www johnwiley com au/highered/stratmgt2e/0470809299 jpg&imgrefurl=http //www[.]
CHAPTER STRATEGY IMPLEMENTATION 147 Bộ môn Quản trị chiến lược 9/16/2022 OUTLINE 6.1 Definition and factors affecting strategy implementation 6.2 Establishing annual objectives and business policies 6.3 Resource allocation 6.4 Organizational structure 6.5 Organizational culture 6.6 Strategic leadership 148 Bộ môn Quản trị chiến lược 9/16/2022 6.1.1 Definition - “It is always more difficult to something than to say you are going to it” (David, 2011) - Involves the use of organizational design, the process of deciding how a company should create, use, and combine organizational structure, control systems, and culture to pursue a business model successfully 149 Bộ môn Quản trị chiến lược 9/16/2022 6.1.1 Definition and content of Strategy implementation (cont.) Nature of Strategy implementation: - Managing forces during the action - Focusing on efficiency - Being primarily an intellectual process - Requiring special motivation and leadership skills - Requiring coordination among many individuals 150 Bộ môn Quản trị chiến lược 9/16/2022 6.1.1 Definition (cont.) Some management issues central to Strategy implementation: - Establish annual objectives - Devise policies - Allocate resources - Alter an existing organizational structure - Develop organizational culture and strategic leadership 151 Bộ môn Quản trị chiến lược 9/16/2022 6.1.2 Factors affecting Strategy implementation 152 Bộ môn Quản trị chiến lược 9/16/2022 OUTLINE 6.1 Definition and factors affecting strategy implementation 6.2 Annual objectives and business policies 6.3 Resource allocation 6.4 Organizational structure 6.5 Organizational culture 6.6 Strategic leadership 153 Bộ môn Quản trị chiến lược 9/16/2022 6.2.1 Annual objectives - Annual objectives serve as guidelines for action, directing and channeling efforts and activities of organization members - Necessity of establishing annual objectives: - Represent the basis for allocating resources - Be a primary mechanism for evaluating managers - Be the major instrument for monitoring progress toward achieving long-term objectives - Establish organizational, divisional, and departmental priorities 154 Bộ môn Quản trị chiến lược 9/16/2022 6.2.1 Annual objectives (cont.) - Requirements of annual objectives: - Measurable - Consistent - Reasonable - Challenging - Clear - Communicated throughout the organization - Characterized by an appropriate time dimension - Accompanied by commensurate rewards and sanctions 155 Bộ môn Quản trị chiến lược 9/16/2022 6.2.2 Business policies - Policy refers to “specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals” (David, 2011) - Are instruments for strategy implementation - Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior; they clarify what can and cannot be done in pursuit of an organization’s objectives 156 Bộ môn Quản trị chiến lược 9/16/2022 6.3.2 Negative factors influencing resource allocation Some factors may influence negative the effectiveness of resource allocation: - Overprotection of resources - Too great an emphasis on short-run financial criteria - Organizational politics - Vague strategy targets - A Reluctance to take risks - A lack of sufficient knowledge 161 Bộ môn Quản trị chiến lược 9/16/2022 OUTLINE 6.1 Definition and factors affecting strategy implementation 6.2 Annual objectives and business policies 6.3 Resource allocation 6.4 Organizational structure 6.5 Organizational culture 6.6 Strategic leadership 162 Bộ môn Quản trị chiến lược 9/16/2022 6.4.1 Definition and feature Definition “Organizational structure assigns employees to specific value creation tasks and roles and specifies how these tasks and roles are to work together in a way that increases efficiency, quality, innovation, and responsiveness to customers—the distinctive competencies that build competitive advantage” (Hill & Jones, 2008) Basic characteristic Specialization Coordination Integration 163 Bộ môn Quản trị chiến lược 9/16/2022 6.4.2 Role 164 Bộ môn Quản trị chiến lược 9/16/2022 6.4.3 Types of organizational structures The functional structure The divisional structure The strategic business unit (SBU) structure The matrix structure 165 Bộ môn Quản trị chiến lược 9/16/2022 6.4.3 Types of organizational structures (cont.) The functional structure The divisional structure (centralized structure) (decentralized structure) Most widely used structure Second most common Groups tasks and activities by business function used structure Can be organized in one of four ways: By geographic area By product/service By customer By process 166 Bộ môn Quản trị chiến lược 9/16/2022 ... 6. 2 Annual objectives and business policies 6. 3 Resource allocation 6. 4 Organizational structure 6. 5 Organizational culture 6. 6 Strategic leadership 153 Bộ môn Quản trị chiến lược 9/ 16/ 2022 6. 2.1... Resource allocation 6. 4 Organizational structure 6. 5 Organizational culture 6. 6 Strategic leadership 162 Bộ môn Quản trị chiến lược 9/ 16/ 2022 6. 4.1 Definition and feature Definition “Organizational... Organizational structure 6. 5 Organizational culture 6. 6 Strategic leadership 159 Bộ môn Quản trị chiến lược 9/ 16/ 2022 6. 3 Resource allocation - Is a central management activity that allows for strategy