STRATEGIC MANAGEMENT & BUSINESS POLICY

13
TH
EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

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Integration Managers

Prepare a competitive profile of the company in
terms of its strengths and weaknesses
Draft a profile of what the ideal combined company
should look like
Develop action plans to close the gap between
actual and ideal
Establish training programs to unit the combined
company and make it more competitive

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Successful Integration Managers

Deep knowledge of the acquiring company
Flexible management style
Ability to work in cross-functional teams
Willingness to work independently
Sufficient emotional and cultural intelligence to
work in a diverse environment

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Staffing Follows Strategy

Training and development
Executive types
Dynamic industry expert
Analytical portfolio manager
Cautious profit planner
Turnaround specialist
Professional liquidator

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Selection and Management Development

Executive succession- replacing a key top manager

Succession planning
Identifying candidates below the top layer of
management
Measuring internal candidates against external
candidates
Providing financial incentives

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Identifying Abilities and Potential

Performance appraisal system identifies good
performers with promotion potential
Assessment centers evaluates a persons suitability
for an advanced position
Job rotation- ensures employees are gaining a mix of
experience to prepare them for future
responsibilities

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Problems in Retrenchment

Downsizing the planned eliminated of positions or
jobs
Can damage the learning capacity of an
organization

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Successful Downsizing

Eliminate unnecessary work instead of making
across the board cuts
Contract out work that others can do cheaper
Plan for long-run efficiencies
Communicate the reasons for actions
Invest in the remaining employees
Develop value added jobs to balance out job
elimination

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International Issues in Staffing

Culture differences
Management styles
Human resource practices
Suboptimization
Communication and coordination
Lack of international management with experience

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Implementation involves leading and coaching
people to use their abilities and skills most
effectively and efficiently to achieve
organizational objectives


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Managing Corporate Culture

Strong cultures are resistant to change
Optimal culture supports mission and
strategies
Change in strategy should be followed by
change in culture

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Accessing Strategy-Culture Compatibility

1. Is the proposed strategy compatible with the
companys current culture
2. Can the culture be easily modified to make it more
compatible with the new strategy
3. Is management willing and able to make major
organizational changes and accept probable delays
and a likely increase in costs
4. Is management still committed to implementing the
strategy

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Managing Cultural Change Through
Communication

CEO and top management communicated the
strategic vision throughout the organization
Current performance was compared to competition
and constantly updated
Vision was translated into key elements needed to
accomplish the vision

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Managing Diverse Cultures Following an
Acquisition

Methods of managing two different cultures
Integration- balanced give and take of cultures
Assimilation- domination of one culture over the
other
Separation of the two cultures
Assimilation- disintegration of one culture resulting
from pressure form the other to impose its culture
and practices

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Action plan- what actions are going to be taken, by
whom, during what time frame, and with what
expected results

1. Specific actions to be taken to make the program operational
2. Dates to begin and end each action
3. Person responsible for carrying out each action
4. Person responsible for monitoring the timeliness and
effectiveness of each action
5. Expected financial and physical consequences of each action
6. Contingency plans

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Importance of Action plans

Serve as a link between strategy formulation and
evaluation and control
Specifies what needs to be done differently from
current operations
Evaluation and control processes appraise
performance and identify remedial actions

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Management by Objectives (MBO)- encourages
participative decision making through shared goal
setting and performance assessment based on
achieving stated objectives

Establishing and communicating organizational
objectives
Setting individual objectives
Developing an action plan to achieve objectives
Performance review (periodic and annual)

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Total Quality Management (TQM)- philosophy that
is committed to customer satisfaction and
continuous improvement

Objectives
1. Better, less variable quality of the product and service
2. Quicker less variable response in processes to customer
needs
3. Greater flexibility in adjusting to customers shifting
requirements
4. Lower cost through quality improvement and elimination of
non-value added work

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Essential Ingredients

1. Intense focus on customer satisfaction
2. Internal as well as external customers
3. Accurate measurement of every critical variable in
a companys operations
4. Continuous improvement of products and services
5. New work relationships based on trust and
teamwork

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Dimensions of National Culture

1. Power distance
2. Uncertainty avoidance
3. Individualism-collectivism
4. Masculinity-femininity
5. Long-term orientation

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1. What skills should a person have for managing a business
unit following a differentiation strategy? Why? What should
a company do if no one is available internally and the
company has a policy of promotion from within?
2. When should someone form outside the company be
hired to manage the company or one of its business units?
3. What are some ways to implement a retrenchment
strategy without creating a lot of resentment and conflict
with labor unions?
4. How can corporate culture be changes?
5. Why is an understanding of national cultures important
in strategic management?

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PowerPoint created by:
Ronald Heimler

Dowling College- MBA
Georgetown University- BS Business
Administration
Adjunct Professor- LIM College, NY
Adjunct Professor- Long Island
University, NY
Lecturer- California State Polytechnic
University, Pomona, CA
President- Walter Heimler, Inc

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