Chapter 10 Organizing and Structure
Chapter 10 Organizing and Structure
Prepared by:
Wilma G. Nonato, CHP,Ph.D.
STRATEGY IMPLEMENTATION
1. Institutionalization of strategy
2. Developing proper organizational climate
3. Formulation of operating plans
4. Developing proper organizational
structure
5. Periodic review of strategy
Who Implements Strategy?
Competitive Tactics
A tactic is a specific operating plan that details how a strategy is to be
implemented in terms of when and where it is to be put into action.
Timing Tactics: When to Compete
A timing tactic deals with when a company implements a strategy. The first
company to manufacture and sell a new product or service is called the
first mover (or pioneer).
Market Location Tactics: Where to Compete
A market location tactic deals with where a company
implements a strategy. A company or business unit can
implement a competitive strategy either offensively or
defensively.
An offensive tactic usually takes place in an established
competitor’s market location.
A defensive tactic usually takes place in the firm’s own
current market position as a defense against possible attack
by a rival.
Budgets
After programs and tactical plans have been
developed, the budget process begins. Planning a
budget is the last real check a corporation has on the
feasibility of its selected strategy. An ideal strategy
might be found to be completely impractical only
after specific implementation programs and tactics
are costed in detail.
Procedures
After the divisional and corporate budgets are approved,
procedures must be developed. Often called Standard
Operating Procedures (SOPs), they typically detail the
various activities that must be carried out to complete a
corporation’s programs and tactical plans. Also known as
organizational routines, procedures are the primary means
by which organizations accomplish much of what they do.
ACHIEVING SYNERGY
Wheelen, T.L., Hunger, J.D., Hoffman, A.N., & Bamford, C.E. (2018).
Strategic management and business policy globalization, innovation
and sustainability. Pearson Education Limited.