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Strategy Implementation (I): Organizing for Advantage

Ford Motor Company CASE 2 Asea-Brown-Boveri (ABB) Introduction Why Study Strategy Implementation? Strategy Implementation and the Firm’s Managers Strategy Implementation and the Firm’s Employees A Framework for Understanding Organizational Structure Basic Ingredients of Organizational Structure Specialization Standardization Centralization Broad Forms of Organizational Structure Functional Structures Product Divisions Variants of the Product Division Structure Geographic Division Structures Matrix Structures Organizing for Global Operations International Division Structures Worldwide Product Divisions Worldwide Geographic Division Structures Worldwide Functional Structures Worldwide Matrix Structures Worldwide Hybrid or Mixed Structures Corporate Application to Ford Motor Company and ABB Ford Motor Company Asea-Brown-Boveri (ABB) No Single Structure. | strategie management Strategy Implementation I Organizing for Advantage CHAPTER OUTLINE CASE 1 Ford Motor Company CASE 2 Asea-Brown-Boveri ABB Introduction Why Study Strategy Implementation Strategy Implementation and the Firm s Managers Strategy Implementation and the Firm s Employees A Framework for Understanding Organizational Structure Basic Ingredients of Organizational Structure Specialization Standardization Centralization Broad Forms of Organizational Structure Functional Structures Product Divisions Variants of the Product Division Structure Geographic Division Structures Matrix Structures Organizing for Global Operations International Division Structures Worldwide Product Divisions Worldwide Geographic Division Structures Worldwide Functional Structures Worldwide Matrix Structures Worldwide Hybrid or Mixed Structures Corporate Application to Ford Motor Company and ABB Ford Motor Company Asea-Brown-Boveri ABB No Single Structure Is Perfect An Overview of Organizational Structure Ethical Dimension Summary Discussion and Exercise Questions WHAT YOU WILL LEARN Why strategy implementation is important How strategy implementation contributes to a firm s competitive advantage Why organizational issues are a significant part of strategy implementation How organizational structure lays the foundation for strategy implementation The broad types of organizational structures that companies are likely to use Why no single type of organizational structure is likely to fit all companies 297 298 PART 3 Organizing for Advantage Case 1 Ford Motor Company1 Following more than ninety years of growth Ford Motor Company has become one of the largest manufacturers of automobiles in the world 1997 revenues of 153 billion profits of 6.9 billion . Throughout its long history Ford has prided itself on its innovation and the creative flair used to design some of the world s most popular and best selling cars. For example in the late 1960s Ford revolutionized automobile design with .