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 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.
2.
3.

4.

Is the proposed strategy compatible with the

companys current culture
Can the culture be easily modified to make it
more compatible with the new strategy
Is management willing and able to make
major organizational changes and accept
probable delays and a likely increase in costs
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.
2.
3.
4.
5.
6.

Specific actions to be taken to make the program

operational
Dates to begin and end each action
Person responsible for carrying out each action
Person responsible for monitoring the timeliness and
effectiveness of each action
Expected financial and physical consequences of each
action
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.
2.
3.
4.

Better, less variable quality of the product and service

Quicker less variable response in processes to
customer needs
Greater flexibility in adjusting to customers shifting
requirements
Lower cost through quality improvement and
elimination of non-value added work

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Essential Ingredients
1.
2.
3.
4.
5.

Intense focus on customer satisfaction

Internal as well as external customers
Accurate measurement of every critical
variable in a companys operations
Continuous improvement of products and
services
New work relationships based on trust and
teamwork

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Dimensions of National Culture

1.
2.
3.
4.
5.

Power distance
Uncertainty avoidance
Individualism-collectivism
Masculinity-femininity
Long-term orientation

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1. What skills should a person have for managing a busine

unit following a differentiation strategy? Why? What sho
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 un
3. What are some ways to implement a retrenchment
strategy without creating a lot of resentment and confli
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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