Lesson No.

9
STRATEGY IMPLEMENTATION

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STRATEGY IMPLEMENTATION
•This is the process of putting the
plans into action, or turning them
into reality.

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 REQUISITES
•Organizational structure
•Organizational components

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ORGANIZATIONAL
STRUCTURE

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 ORGANIZATIONAL STRUCTURE

•This refers to the system or mode by

which a group of individuals is able to
achieve its desired goals.
•This depicts the flow of authority and
responsibility in the organization.

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 TYPES OF ORG STRUCTURE
•Functional organizational structure
•Territorial organizational structure
•Product organizational structure
•Market-centered org. structure
•SBU organizational structure
•Matrix organizational structure

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 FUNCTIONAL ORGANIZATION
•The organization is structured by
functional area or responsibility.
•Marketing
•Finance
•Production and Operations
•Human Resources

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 TERRITORIAL STRUCTURE
•The organization is structured by
territory or geographical location.
•Luzon
•Visayas
•Mindanao
•NCR

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 PRODUCT STRUCTURE
•The organization is structured by
product line or category.
•Food and beverages
•Health care
•Cosmetics
•Appliances

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 MARKET-CENTERED STRUCTURE
•The organization is structured by
market or buyer group.
•Male market
•Female market
•Children’s market
•Adult market

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 SBU STRUCTURE
•A strategic business unit, popularly
known as SBU, is a fully-functional unit
of a business that has its own vision
and direction.
•Typically, a strategic business unit
operates as a separate unit, but it is
also an important part of the company.

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 MATRIX STRUCTURE

•A matrix is an organization that

employs a multiple boss arrangement.
•An employee may be assigned to one
unit which is his permanent home, and
another which is his temporary home.

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 MATRIX STRUCTURE
•This structure encourages working
together through collaboration and
teamwork
•It cuts across departmental boundaries
to get a job done.
•However, this might violate a basic
management principle.

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FACTORS THAT AFFECT STRUCTURE

•Size of the firm

•The products
•The geographical location
•The competition
•The personality of the CEO

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ORGANIZATIONAL
COMPONENTS

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ORGANIZATIONAL COMPONENTS
•Management
•Employees
•Facilities and equipment
•Financial resources
•Organizational policies

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 MANAGEMENT

•This refers to the administrative

supervision of an organization.
•It includes leadership, the vision-
mission, goals and objectives to attain
organizational success.

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 EMPLOYEES
•They are the very people who work,
support and earn profits for the
organization.
•Generally, management expects
employees to experience and
graduate through three levels of
relationships.

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 EMPLOYEE SATISFACTION
•It is an emotional state where the
employee experiences a feeling of
content in the workplace.
•Salary, fringe benefits, incentives,
positive interpersonal relationships,
and acceptable work conditions.

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 EMPLOYEE INVOLVEMENT
•The employee becomes more
participative in company activities and
essentially aims to contribute to the
growth of the company.

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 EMPLOYEE COMMITMENT
•Here, the employee cultivates within
himself an attitude and a “sense of
owning” where he treats the interests
of the enterprise as if he owns it.

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 FACILITIES AND EQUIPMENT
•Management of buildings and site
maintenance
•Management of machinery
•Management of facilities
•Application of technology

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 FINANCIAL RESOURCES
•Promotional strategies
•Upgrading or purchasing new facilities and equipment
•Experimenting and developing new products
•Hiring additional manpower
•Increasing salaries and wages
•Training employees
•Ensuring the firm’s continued existence

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 ORGANIZATIONAL POLICIES
•This allows a smooth flow of business
operations where people know what is
expected of them, and what to expect
from the organization.
•It is difficult to implement strategies if
there are conflicts or
misunderstandings in the organization.

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 ORGANIZATIONAL MANUAL
•You cannot expect people to follow
rules and regulations that they are not
aware of.
•The rules and regulations must be
drafted and disseminated, usually
through a policy manual.

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ADVANTAGES OF WRITTEN POLICIES
•Written policies promote delegation of
authority.
•Written policies promote consistency
and reduce arbitrary bases for
decisions.

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ADVANTAGES OF WRITTEN POLICIES
•Written policies support continuity.
•Written policies allow people to
cooperate more harmoniously
because conflicts and
misunderstandings are minimized and
avoided.

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DISADVANTAGES OF WRITTEN POLICIES

•Some policies may be confidential.

•Some policies may become obsolete.
•Some policies permit insufficient
discretion on the part of the decision
maker.
•Some policies develop on their own.

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 End of Lesson No. 9
STRATEGY IMPLEMENTATION

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