E

&
I
A
 Matrixes

1. INFORMATION PHASE
 IFE-(EFI- PCI)
 EFE-POAM
 CPM-(MPC)
2. ADJUSTMENT PHASE
 SWOT (FODA)
 SPACE (PEYEA ) Factores Internos: FF,VC Externos:EA,FI
 BCG: Relative Share of Market (Participación Relativa Mercado),
Industry Growth Rate (Tasa de Crecimiento de la Ind).
 IE: EFI y EFE (9 cells matrix)
 PE (Estrategia Principal): Market Growth Rate (Crecimiento del
Mercado), Competitive Position (Posición Competitiva)
3. DECISION STAFE
 CMEP- (MPEC): Atraction level of alternative strategies
 Crafting vs. Executing Strategy
Crafting the Strategy Executing the Strategy
 Primarily a market-  Primarily an operations-
driven activity driven activity
 Successful strategy  Successful strategy
making depends on execution depends on
 Business vision  Doing a good job of
 Perceptive analysis of working through others
market conditions and  Good organization-
company capabilities building
 Attracting and pleasing  Building competitive
customers capabilities
 Outcompeting rivals  Creating a strategy-
 Using company supportive culture
capabilities to forge a  Getting things done and
competitive advantage delivering good results

10-4
: The Ten Components of Strategy Execution
SKILLS

Staffing Structure

10-5
 Figure 10.2: The Three Components of Building an
Organization Capable of Proficient Strategy Execution

Skills

Structure

10-6
 STAFFING THE ORGANIZATION
 Assemble a Strong Management Team:
 Planners who ask tough questions and figure out what
needs to be done.
 Implementers who can select, manage, and lead the right
people.
 Executors who turn decisions into actions that drive the
changes that produce sustainable competitive advantage.
 Key Takeaway:
 A critical mass of talented activist managers

 Excellent Human Resources practices ¡¡¡¡.

BUILDING AND STRENGTHENING CORE
COMPETENCIES AND COMPETITIVE
CAPABILITIES (SKILLS)

Approaches to Build Building

Competencies and Capabilities

Develop Acquire capabilities Access capabilities

capabilities through mergers via collaborative
internally and acquisitions partnerships
Developing Capabilities Internally

Managerial Actions to Develop

Competencies and Capabilities

Strengthen the Coordinate and

firm’s base of skills, integrate the efforts
knowledge, and of work groups and
intellect departments
 Setting Stretch Goals:
From Capability to Competence

Evolving the
Setting a stretch
Thinking ability into a
goal of
strategically competence
developing an
about a firm’s or capability by
organizational
knowledge and performing it well
ability to do
skills base and at an
something well
acceptable cost

Refreshing, updating, and

Thinking
upgrading competencies
strategically
and capabilities as
about a firm’s
necessary
opportunities
to gain and maintain
and challenges
competitive advantage
Acquiring Capabilities through Mergers
and Acquisitions

When a market opportunity can slip

A Question of
by faster than a needed capability
Market Opportunity can be created internally.

When industry conditions,

A Question of technology, or competitors are
Competitive Necessity moving at such a rapid clip that time
is of the essence.

Tacit knowledge and complex

A Question of routines may not transfer readily
Successful Integration from one organizational unit to
another.
 Accessing Capabilities through
Collaborative Partnerships

Approaches to acquiring
capabilities from an external source

Engage in a
Outsource the Collaborate with
collaborative
function requiring a firm that has
partnership for the
the capabilities to complementary
purpose of learning
a key supplier or resources and
how the partner
another provider capabilities
does things
 Further Perspectives on Structuring
the Work Effort

Matching Structure to Strategy

Pick a basic Institute

Supplement
organizational collaborative
design with
design that networking and
appropriate
matches communication
coordinating
structure to arrangements
mechanisms
strategy
 Aligning the Firm’s Organizational
Structure with Its Strategy

 Organizational Structure
 Comprises the formal and informal arrangement
of tasks, responsibilities, lines of authority, and
reporting relationships for the firm.
 Structure Is Aligned with Strategy When:
 Its design contributes to the creation of value for
customers.
 Its parts are aligned with one another and also matched
to the requirements of the strategy.
 It lowers operating costs through lower bureaucratic
costs and operational efficiencies.
 Structuring the Work Effort to
Promote Successful Strategy Execution (Activities needed)

10-15
 Appeal of Outsourcing

 Outsourcing non-critical activities allows a firm to

concentrate its energies and resources on
those value-chain activities where it
 Can create unique value
 Can be best in the industry
 Needs direct control to
 Build core competencies
 Achieve competitive advantage
 Manage key customer-supplier-distributor relationships
 Make Strategy-Critical
Activities the Main Building Blocks

 Assign managers of strategy-critical activities a

visible, influential position

 Avoid fragmenting responsibility for strategy-

critical activities across many departments

 Provide coordinating linkages

between related work groups Assign
managers
key roles
Primary
Support
 Meld into a valuable activitie
s
functions
competitive capability Strategic Coordi- Valuable
relation- nation capability
ships
 Guard Against Functional
Designs That Fragment Activities

 Scattering pieces of critical business processes

across several specialized departments results in
 Many hand-offs which
 Lengthens completion time
 Drives up administrative costs
 Increases risk of details
falling through the cracks
 Obsession with activity rather than result
 Solution  Business process reengineering
 Involves pulling strategy-critical processes from
functional departments to create process departments or
cross-functional work groups
Determining How Much Authority to Delegate

Organizational
Centralized Decentralized
Approach to
Decision Decision
Making Decision- Making
Making

Authority is retained Authority delegated to

by top management lower-level managers
and employees
 Determine How Much
Authority to Delegate to Whom

 In a centralized structure

 Top managers retain authority

for most decisions

 In a decentralized structure

 Managers and employees are

empowered to make decisions

 Trend in most companies

 Shift from authoritarian to decentralized

structures stressing empowerment
Capturing Cross-Business Strategic Fit
in a Decentralized Structure

Enforcing close cross-

business collaboration to
avoid duplication of effort
Capturing
Cross-Business
Strategic Fit
Centralizing related functions
requiring close coordination
at the corporate level
 Coordinating Mechanisms to Supplement the
Basic Organization Structure

 Cross-functional task forces

 Dual reporting relationships

 Informal networking

 Voluntary cooperation

 Incentive compensation tied

to group performance

 Teamwork and cross-

departmental cooperation
Matching Type of Organizational Structure
to Strategy Execution Requirements

Simple Structure
Strategy
(Line-and-Staff)
Execution
Requirements:

Chosen
Functional Structure
Strategy
(Departmental or Unitary)

Capabilities
and
Multidivisional Structure Competencies
(Divisional or M-form)
Centralized
or
Decentralized
Matrix Structure
Control
(Composite or Combination)
 Functional Structure Título del organigrama

24
PRESIDENTE

Asistente del Personal

presidente

Comercialización Ingeniería Producción Finanzas

Investigación Aministración Planeación de Planeación

de mercados de ingeniería producción financiera

Planeación de Diseño Ingeniería Presupuesto

comercialización preliminar industrial

Publicidad y Ingeniería Ingeniería de Contabilidad

promoción eléctrica producción General

Administración Ingeniería Compras Contabilidad

de ventas mecánica de costos

Ventas Ingeniería Montaje Estadística y

hidráulica procesamiento
de datos

Empaque Producción
general

Control de
Calidad
Multidivisional structure
Matrix Structure
Other structures (teams, projects, circular, so
on…)
 What Types of Organizational
Structures Fit Which Strategies?

 A company operating in one business

 Functional department structure
 A company with operations in various parts of the
world
 Geographic organizational units
 A vertically integrated company
 Divisional organizational structure
 A diversified company
 Individual business units, with each business unit operating as
independent profit center
Facilitating Collaboration with External
Partners and Strategic Allies

Creating a Strategic alliances

Network
Structure:
Using
Outsourcing arrangements
“relationship
managers”
to build and
maintain
Joint ventures
cooperative
arrangements
of value both
parties
Cooperative partnerships