Assignment Cover Sheet for Students

An assignment cover sheet needs to be included with each assignment. Please complete all detail clearly. If you are submitting the assignment on paper, please staple this sheet to the front of each assignment. If you are submitting the assignment online, please ensure this cover sheet is included at the start of your document. (This is preferable to a separate attachment.) The submission method should be done according to the instructors instructions. Name Habiburachman Student ID 29111388 Course code and title Business Strategy Course time and place Wednesday/ 08.00 13.30/ R1 Lecturer Hary Mukti Wandebori Due date March 27 th 2013
Multiunit Enterprise

Mobile phone 081321850144

Program Young Professional

Assignment number Assignment title/topic/case Assignment type (choose one) ( ) Midterm Exam ( ) Final Exam ( ) Individual Assignment ( ) Group Assignment ( ) Other

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I declare that the work contained in this assignment is my own, except where acknowledgement of source is made. I authorize SBM ITB to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand that this will involve the SBM ITB or its contractor copying my work and storing it on a database to be used in future test work submitted by others. Note: The attachment of this statement on any electronically submitted assignments will deemed to have the same authority as a signed statement.

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26 March 2013

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Multiunit Enterprise
Citigroup, CVS, Hertz, Home Depot, Kroger, Marriot International, United Parcel Service, Wal-Mart and Yum Brands is multiunit enterprise geographically dispersed organization built from standard units such as branches, service centers, hotels, restaurant which are integrated into larger geographic groupings such as district, regions and divisions. Every tier has their own managers and all of these levels of managers responsible for meeting financial and operating targets set by corporate headquarters. Multiunit enterprise employ four levels of field mangers with carefully defined responsibilities and use five organizational design principles to implement strategy effectively.

Four level of Field Managers: These challenges result from breakdown in coordination, communication, and control especially since these are large organization with diffuse responsibilities and unclear levels of accountability. To prevent that, multiunit enterprises try to define the roles of field managers and distribute responsibilities in a novel way. In an organization have all created the same four levels from bottom to top: a. Store managers Store managers, branch managers, or restaurant managers (depending on industry) are responsible for both day to day operations and the execution of new initiatives. Store managers focus in short term and more tactical rather than strategic like evaluate on the achievement of financial target or customer satisfaction. b. District managers District managers focus on ensuring consistent execution, improving performance, and developing bench strength in all their stores. District managers are responsible for opening new stores and implementing new initiatives. They also communicate news from headquarters about upcoming promotions, possible delivery problems, and system breakdown beside that district managers also audit sores to ensure compliance with the companys policies and procedures. c. Regional vice president These managers focus on markets, key competitors, growth opportunities, and systemic problems. In staples company regional vice president perform four roles like: offering feedback to headquarters on proposed initiatives, turning broad

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programs into detailed action plan, ensuring alignment between region and headquarters and troubleshooting. Regional vice president also responsible to convert outlines of company new programs into action plan. d. Division president and senior vice president Division presidents and senior vice president focus on new initiatives, growth opportunities, and systemic problem solving. When companies launch new programs, division presidents must share the corporate vision with the field. Staples senior vice president creates the business plans for their divisions subject to the constraint of the corporate plan.

Designing organization for implementation To implement strategy effectively multiunit enterprise use five organizational design, such as: a. Allow overlapping roles and responsibilities: b. Use integration at all levels In functional organization there is only one integrator, the business unit leader and most midlevel employees perform narrow, specialized roles, whereas in multiunit enterprise integrators at all level. Having integrators at different levels helps balance customization with standardization. c. Set up information funnels and filters Multiunit corporations could grind to a halt because of an overburdened of information. To avert breakdowns from diverse market, regional and divisional managers serve as information funnels, narrowing data flows to manageable levels. d. Appoint translators to convert strategies into action At multiunit corporation field managers, especially division president and regional vice president are the translators who responsible to defining concrete terms how the field organization should frame and roll out initiatives. e. Share responsibility for talent development The success of multiunit corporations depends on the competence, capabilities, and commitments of field managers, who embody the brand through their actions, oversee daily operations, and implement new initiatives. To maintain high performance, companies must take care to develop these managers.

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