Strategic Management – Implementation of Strategy (FujiFilm Case & 5S Framework)

Vocabulary flashcards summarizing major terms and concepts from the lecture on strategy implementation, the 5S alignment framework, and FujiFilm’s transformation case.

Strategy Implementation

The process of converting chosen strategies into actionable activities to achieve strategic objectives.

Critical Tasks

Core activities an organization must perform exceptionally well to support and execute its strategy.

5S of Strategy Implementation

The five organizational levers—Structure, System, Skills, Staffing, Shared Values—used to align critical tasks with strategy.

Structure (5S)

The formal and informal arrangement of tasks, responsibilities, authority lines, and communication channels within a firm.

System (5S)

Metrics, rewards, policies, budgets, and processes that guide and reinforce desired employee behaviors.

Skills (5S)

The capabilities and competencies employees need to execute strategy effectively, often built via training and leadership programs.

Staffing (5S)

Recruiting, placing, and developing the right people in the right positions to support strategy execution.

Shared Values (Culture) (5S)

The collective behaviors, attitudes, and norms that shape how employees act; a healthy culture supports critical tasks.

Peter Drucker’s Culture Quote

"Culture eats strategy for breakfast," emphasizing culture’s power over strategic plans.

Span of Control

The number of subordinates that a manager can efficiently and effectively oversee within an organizational structure.

Economies of Scope

Cost advantages gained by sharing activities such as sales, R&D, or manufacturing across divisions.

Standardizing Components (Ducati)

Using common parts across products to reduce cost while offering high-performance motorcycles.

Centralizing Manufacturing (Ducati)

Consolidating production facilities to improve efficiency and reduce overhead costs.

Expanding Outsourcing (Ducati)

Contracting external suppliers for components/services to lower production cost for high-end products.

Local Management Teams (Schindler India)

Employing domestic managers, sales, and maintenance staff to match local market needs and service expectations.

Cooperative Relationship with European Plants (Schindler)

Leveraging parent-company expertise and technology while adapting to India’s price-sensitive elevator market.

Performance Metrics for Mature Businesses (IBM Example)

Profit, costs, and productivity measurements used to manage established operations.

Performance Metrics for Emerging Businesses (IBM Example)

Milestones, prototype tests, and growth indicators for early-stage ventures.

Jamie Dimon Reward Alignment

Eliminated perks and tied compensation and stock options directly to profit and performance to build a performance-based culture.

GE’s Crotonville

General Electric’s leadership center that provides training to develop skills aligned with strategy execution.

Collaboration in R&D (Komori’s Critical Task)

Encouraging cross-divisional research to leverage existing photography technologies for new markets.

Entrepreneurial Mindsets (Komori)

Fostering risk-taking and opportunity recognition among employees to drive business diversification.

FujiFilm Restructuring (2000–2006)

Cost cuts exceeding $2.5 billion and layoffs of 5,000 employees to exit declining film business.

Decentralized Organization (FujiFilm)

Creation of 6 divisions and 14 business units giving managers ownership and flexibility.

Centralized R&D Budget (FujiFilm)

Allocating 76 % of R&D spending to early-stage, novel technologies for new growth areas.

FujiFilm M&A Strategy

Over 40 acquisitions, including stakes in Fuji Xerox, Toyama Chemical, and SonoSite, to enter healthcare and other fields.

Corporate Venture Capital (FujiFilm)

Budget reallocation to invest in start-ups and external innovations supporting new business foundations.

Scouting & Training (FujiFilm Skill)

Hiring outsiders (e.g., Toshiba engineers) and sending internal engineers for external training to upgrade competencies.

Middle-Manager Lunch Meetings (FujiFilm)

Komori’s informal sessions to gather feedback and align staff with the transformation vision.

Two-Page Memo Initiative

Request for top 1,000 employees to propose ideas, fostering engagement and shared values during change.

Second Foundation Strategy (FujiFilm)

Leveraging photographic technologies to build new businesses in materials, healthcare, graphics, documents, and optics.

Highly Functional Materials (Key Tech)

Advanced chemical and coating technologies originally used in film, redeployed in flat-panel displays and other products.

Medical Imaging & Life Sciences (Key Tech)

Applying film-based imaging know-how to digital X-ray, endoscopes, and pharmaceutical development.

Graphic Arts & Document Solutions (Key Tech)

Using color management and imaging expertise to serve printing, CTP plates, and office printer markets.

Optical Devices (Key Tech)

Precision lenses and sensors evolved from camera technology, now used in digital cameras and industrial optics.