Term
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Definition
Sum total of all activities and choices required for the execution of a strategic plan
-Who are the people
-What must be done to align company operation in the intended direction
-How is everyone going to work together to do what is needed? |
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Term
| Common Strategy Implementation Problems (10) |
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Definition
1. Took more time than planned
2. Unanticipated major problems
3. Poor Coordination
4. Competing Activities and crises created distractions
5. Employees with insufficient capabilities
6. Poor subordinate training
7. Uncontrollable external environmental factors
8. Poor departmental leadership/directions
9. Inadequately defined implementation tasks and activities
10. Inefficient information system to monitor activities |
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Term
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Definition
| Make strategies action-oriented |
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Term
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Definition
| Provides guidance on where, when and how fast to implement change |
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Term
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Definition
| Provides last real check on the feasibility of the strategy |
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Term
| Procedures (organizational routines) |
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Definition
| detail the various activities that must be carried out to complete a corporation's programs |
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Term
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Definition
| Exists for a divisional corporation if the return on investment is greater than what the return would be if each division were an independent business |
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Term
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Definition
-Shared Know-how
-Coordinated Strategies
-Shared Tangible Resources
-Economies of scale or scope
-Pooled negotiating power
-new business creation |
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Term
| Structure follows strategy |
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Definition
Changes in corporate strategy lead to changes in org. structure
1.New Strategy is created.
2. NEw Administrative problems emerge
3. Economic performance declines
4. New Appropriate structure is invented
5. Profit returns to its previous level |
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Term
| Stages of Corp. Development (I. Simple Structure) |
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Definition
| Flexible and Dynamic; Personal/subjective control; survival and growth dealing with s-t operating problems |
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Term
| Stages of Corporate Development (II. Functional Structure) |
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Definition
| Entrepreneur is replaced by a team of manager; Growth, rationalization, and expansion of resources; control grows beyond one person; objectives: profits and meeting budgets/targets |
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Term
| Stages of Corporate Development (III. Divisional Structure) |
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Definition
-Management of diverse product lines in numerous industries; Objectives: ROI, profits, EPS
-Decentralized decision making; Multiunit general staff office and decentralized operating divisions. |
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Term
| Stages of Corporate Development (IV. Beyond SBU's) |
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Definition
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Term
| Blocks to changing stages (Internal/external) |
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Definition
Internal:
-Lack of resources
-Lack of ability
-Refusal of top mgmt to delegate
External:
-Economy
-Labor shortages
-Lack of market growth |
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Term
| Blocks to Changing Stages (Entrepreneurs) |
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Definition
-Loyalty
-Task orientation
-Single-mindedness
-Working in isolation |
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Term
| Organizational life cycle |
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Definition
Birth- Concentration in niche;entrepreneur
Growth- Horizontal and vertical growth; funtional mgmt emphasized
Maturity- Concentric/conglomerate diversification; Decentralization into profit or investment centers
Decline- Profit strat. followed by retrenchment; structural surgery
Death- liquidation or bankruptcy; dismemberment of structure |
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Term
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Definition
| functional and product forms are combined simultaneously at the same level of organization |
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Term
| Conditions for Matrix Structures |
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Definition
-ideas need to be cross-fertilized across projects or products
-scarcity of resources
-abilities to process info and to make decisions needs to be improved |
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Term
| MArket development strategy |
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Definition
-provides ability to capture a larger market share (saturation/penetration)
- Develop new uses and/or market for current products |
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Term
| Phases of Matrix Structure Development (Davis and Lawrence) |
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Definition
1. Temporary cross-functional task forces: usually when new product line is produced.
2. Product/brand management: proj. mgr becomes product or brand mger, function still primary organizational structure.
3. Mature matrix: dual authority structure; functional and product structures permanent. |
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Term
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Definition
| eliminates in-house business structure |
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Term
| Cellular/Modular Structure |
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Definition
Series of project groups or collaboration linked by constantly changing non-hierarchical electronic networks
-useful in unstable environments that require innovation and quick response. |
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Term
| Advantages (2) and Disadvantages (3) of Network structure |
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Definition
Adv:
-Increased Flexibility and adaptability
-Ability to concentrate on distinctive competencies
Dis:
-Transitional structure
-Availability of numerous partners
-Overspecialization |
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Term
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Definition
radical redesign of business processes to achieve major gains in cost, service, or time
-program to implement a turnaround strategy |
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Term
| Principles of Reengineering (Hammer) (7) |
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Definition
-Organize around outcomes, not tasks
-Have those who use output of process perform the process
-Subsume info-processing work into real work that produces info.
-Treat geo-dispersed resources as though they were centralized
-Link Parallel activities instead of integrating their results
-Put the decision point where the work is performed and build control into process.
-Capture info once and at the source. |
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Term
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Definition
Analytical Method for achieving near perfect results on production line.
1. Define a process where results are below average
2. Measure the process to determine current performance
3. Analyze the info to determine problems
4. Improve the process and eliminate the error
5. Establish preventative controls |
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Term
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Definition
| Incorps. Six Sigma with lean manufacturing- removes unnecessary production steps and fixes the remaining steps |
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Term
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Definition
The study of individual tasks in an attempt to make them more relevant to the company and to the employees
-Job enlargement: combining tasks to give worker
-Job rotation: moving workers through several jobs to increase variety
-Job enrichment: altering jobs by giving worker more autonomy and control over activities |
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Term
| Forces for Standardization (6) |
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Definition
-Convergence of customer preferences and incomes.
-Competition from other global products
-Growing customer awareness of international brands
-Economies of scale
-Falling trading costs across countries
-Cultural exchange and business interactions among countries |
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Term
| Forces for Customization (6) |
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Definition
-Differences in customer preferences
-Differences in customer incomes
-Need to build local brand reputation
-Competition from domestic companies
-Variations in trading costs
-Local regulatory requirements |
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Term
| Drivers for Strategic fit among alliance partners (7) |
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Definition
-Partners must agree on values/vision
-Alliance must be derived from business, corporate, and functional strategy
-Alliance must be important to partners, especially top mgmt.
-partners must be mutually dependent for achieving objectives
-Activities must add value
-Alliance must be accepted by stakeholders
-Partners contribute strengths while protecting core competencies |
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Term
| Stages of Int'l Development |
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Definition
1. Domestic
2. Domestic with Export Division
3. Primarily domestic w/ int'l division
4. Multinational corp w/ multidomestic emphasis
5. multinational corp w/ global emphasis |
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Term
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Definition
| enables the company to introduce and manage a similar line of products around the world. |
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Term
| Geographic area structure |
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Definition
| Allows the company to tailor products to regional differences and to achieve regional coordination |
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Term
| Questions addressed by MAtrix of Change |
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Definition
-Feasibility
-Sequence of execution
-Location
-Pace and nature of change
-Stakeholder evaluations |
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Term
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Definition
| (Standard operating procedures, organizational routines) detail various activities that must be carried out to complete a corporations programs. |
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Term
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Definition
| composed of a series of project groups or collaborations linked by constantly changing nonhierarchical cobweb-like electronic networks |
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