Chapter 10

Strategy Implementation

The process of putting a strategic plan into action, considering the complexity of the implementation based on the level of strategic change.

Organizational Structure

The formal system that defines how work is coordinated within an organization, aiming to provide control and coordination.

Vertical Growth

Refers to an increase in the number of hierarchical levels in an organization, affecting the span of control of managers.

Centralization and Decentralization

Centralization involves top managers making most decisions, while decentralization involves lower-level managers making strategic and operating decisions.

Horizontal Growth

Involves broadening the organization's structure, often leading to downsizing by eliminating hierarchical levels like middle managers.

Functional Structure

Organizing the organization by functions like marketing, human resources, finance, or production, emphasizing specialization and economies of scale.

Product Divisional Structure

Divides activities into self-contained units responsible for producing, distributing, and selling products, focusing on product success and profit responsibility.

Geographic Divisional Structure

Groups activities and personnel based on specific geographic locations, useful when divisions can be easily separated geographically.

Matrix Structure

Combines functional and product divisional structures, leading to dual reporting relationships and complexity, suitable for high technological change environments.

Corporate Restructuring

Involves changing the organization's structure to enhance efficiency and performance, including actions like realigning divisions, reducing cash, and acquiring/divesting business units.