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Undergrad Strategic Chapter 7: Implementing Strategies

Posted on the 24 February 2015 by Socialmediaevie @socialmediaevie
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Social Media Strategy Framework (Photo credit: Intersection Consulting)

Chapter 7 – Implementing Strategies:  Management and Operations Issues




Chapter 7 explains how to implement strategies in terms of effectively managing organizational structure, resistance to change, organizational culture, corporate wellness, employee and executive compensation, human resource issues, and restructuring.


Chapter 7 Learning Objectives:


  1. Construct effective organizational chart.
  2. Explain why corporate wellness has become so important in strategic planning.
  3. Explain why strategy implementation is more difficult than strategy formulation.
  4. Discuss the importance of annual objectives and policies in achieving organizational commitment for strategies to be implemented.
  5. Explain why organizational structure is so important in strategy implementation.
  6. Compare and contrast restructuring and reengineering.
  7. Describe the relationships between production and operations and strategy implementation.
  8. Explain how a firm can effectively link performance and pay to strategies.
  9. Discuss employee stock ownership plans (ESOPs) as a strategic-management concept.
  10. Describe how to modify an organizational culture to support new strategies.



The most important parts of this chapter are the concepts of objectives and the concept of organizational structure. Having clear objectives greatly enhances performance. You will identify your companies corporate strategies for your final project. Objectives provide direction, serve to motivate, and often serve as a basis incentive compensation to be received if and when the objectives are met.  Employees and managers expect a firm to have clear objectives, so they know what is expected, and ideally how they can expect to benefit if the objectives are reached.

1. Organizational structure can yield great competitive advantages for businesses. Review the four basic types of structure starting on page 214 and how to diagram each type. Review the advantages and disadvantages of each type.

2. In analyzing your own case company, you will be required to generate an organizational structure diagram like the ones shown in this post.

3. You should look for a lack of diversity among the top executives. Attempt to correct  this problem, and correct any other potential problems outlined under the “Do’s and Don’ts” on page 222. Has your company been restructured lately?

4.  In implemeting your strategies, look for strengths (to be capitalized upon) and (weaknesses to be improved upon) in these areas covered such as linking performance and pay, organizational culture, diversity, and corporate wellness.

5.  At the end of Chapter 7, pay attention to the “Special Note to Students” on page 237. It has important information for you to understand as you prepare and ultimately deliver your oral case analysis presentation later in the course.



This exercise mentions five web sites that may be used to develop a new and improved organizational chart for PepsiCo.  Let’s here use

Go to the EBSCO library database and pull up Pepsi’s company profile. Look at the revenue analysis and draw the chart. Tweet your finished diagram.

Here is my Pinterest Board

Assignment 6A on page 197: Perform a SWOT analysis for PepsiCo: In the same EBSCO database, look at the SWOT analysis in the company profile and Tweet the actual diagram.




Cultural   form Example

Hero/Heroine Grace   Harris is a heroine at VCU.  She served   as President of the institution twice and also as Provost.  She was instrumental in guiding the   institution and is known now as the example by which all leaders are   measured.

Belief VCU   believes that football is detrimental to the learning environment and, for   this reason, does not have a football team.

Metaphor VCU   is like a friend of the community.  It   seeks to be seen as a friend and support system in all community affairs.

Language There   are several words that are heavily used in the VCU language.  They are interdisciplinary,   entrepreneurial, international, diversity, and growth.

Value VCU   values those things that are represented by its language.  These include interdisciplinary programs,   programs that generate revenues, international experiences, a commitment to   diversity, and growth.

Symbol The   symbol of VCU is the ram.

Story VCU   evolved from two other small institutions just three decades ago. The   president likes to tell this story to illustrate the youthfulness and vigor   of the institution.

Legend The   work of Dr. John Fenn, a Nobel prize winning scientist, is legendary at VCU.

Saga VCU   develops an annual report each year that details its many accomplishments.

Folktale Upper   classmen often warn freshmen about the “Freshmen 15” – the 15 pounds that   freshmen tend to gain during the first year of college.

Myth Music   students believe that the building which houses the School of Music is   haunted by a pianist who died in the Civil War.  The School is housed in an old church.

Ceremony Graduation   is a ceremony that marks the end of each student’s formal relationship with   the institution.

Rite A   rite of passage at graduation is the throwing of caps at the conclusion of   the service.

Ritual Students   have a ritual of going out on Thursday nights.

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