STRATEGIC MANAGEMENT & BUSINESS POLICY

13TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
 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 person’s 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

company’s 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 company’s 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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