case analysis

MGMT 4002: Strategy Implementation

Strategic Decision-Making

Bachelor of Management Program

Faculty of Management

Winter 2019

Dr. Ramon Baltazar

FROM STRATEGY FORMULATION TO

IMPLEMENTATION

© Dr. R. Baltazar 2019

CONTROL

SYSTEMS

ORGANIZATION

STRUCTURE

PEOPLE

SYSTEMS CULTURE

EXTERNAL

ENVIRONMENT

STRATEGY

COMPETITIVE

EMPHASIS

PRODUCT

MARKET SCOPE

GOALS

DECISIONS AND STRATEGY

E.g. Honda, Starbucks

© Dr. R. Baltazar 2019

Decisions Strategy

ORGANIZATION AND DECISIONS

Organization –

the firm’s structure, control

systems, and people systems –

has a powerful influence on the

success of a strategy.

© Dr. R. Baltazar 2019

E.g. P & G

DecisionsOrganization

HQ StaffR&D

CEO

Country 1

President

Country 2

President

Country 3

President

M O F

Innovation

© Dr. R. Baltazar 2019

DESIGNING A DECISION-DRIVEN

ORGANIZATION

Strategy Key Decisions Organization

‘When reorganizing a company,

decisions rather than structure

should be the focus.’ Blenko, Mankins, & Rogers (2010)

Steps

✓Identify key decisions (based on strategy)

✓Determine where they should happen

✓Organize the macrostructure around sources of

value

✓Figure out levels of authority

✓Align incentives, information flows, and

processes

✓Help managers develop the skills and behaviors

for effective decision-making

DECISION-MAKING PROCESS

• Decisions – Choices made under

conditions of uncertainty

• Decision-making may be – Rational: Deliberate, logical, and linear

– Creative: Impulsive, intuitive, and lateral

– Both rational and creative

– E.G. Exercises, Gwinnet

• Common problem areas: Problem ID,

Alternatives ID, Selecting best

alternative

© Dr. R. Baltazar 2019

PROBLEM IDENTIFICATION –

SUGGESTIONS

© Dr. R. Baltazar 2019

• Suspend preferences, be objective

• Identify root causes

• Fight pressure to look decisive

• Gather data, consult with others

• E.g. Elevator problem

GENERATION OF ALTERNATIVES –

SUGGESTIONS

© Dr. R. Baltazar 2019

• Explore as many options as

possible

– Assume alternatives identified

not available

– Consult with others

– Brainstorm with SCAMPER

• Examples:

– Sandusky, Ohio parade

problem

ALTERNATIVES EVALUATION AND CHOICE –

SUGGESTIONS

© Dr. R. Baltazar 2019

http://www.mindtools.com/pages/

article/newTED_03.htm

• Use decision matrix:

Simultaneous consideration of

options and criteria

– Identify criteria, such as cost,

time, usefulness, then weigh

them

– Rate and rank alternatives

– Use intuition as a check, make

decision