| February 4, 2014

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The case in this course is a “ongoing” case, which means that we will be taking an intense look at one company over the course of 5 modules. please make sure the slp is separate as well because its a different home work. CASE The case in this course is a “ongoing” case, which means that we have been taking an intense look at one company over the course of 5 modules. This term, we conducted a strategic analysis of California Pizza Kitchen. In order to be best prepared and perform well on the cases, it is highly recommended that you complete the background readings and the SLP before writing the case. This final case involves an analysis of strategy implementation at CPK. You will use the resources you identified in the SLP to gather information about the company and relate that information to your work in the previous four cases. Step One. Review your cases 1-4 so that you are familiar with the mission, vision, SWOT, strategy, and strategic choices you identified over the course of the class. Step Two. Research the structure, systems, people, and culture at CPK. Use the questions listed in the SLP as a guideline. You will not be able to get answers to every single question, but you will need to answer at least one or two for each component. Step Three. Describe CPK’s organizational design, key strategic control systems, primary people concerns and cultural factors that have a direct effect on strategy implementation. Step Four. In a 4 page paper, critically evaluate the fit – or lack of fit – between the company’s mission, strategy, and organizational components critical to implementation. Do these components compliment the strategy? Why? Turn in your paper to course-net before the module deadline. Case Expectations: Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as CPK’s company consultant. This is a professional document. Executive summary: a synopsis of the main points, conclusions and recommendations made in the longer report. Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it. Main Body: The “meat” of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings. Conclusion: Summarize paper in the light of your thesis statement. SLP Note: Throughout this course, you should complete the SLP before you undertake the case analysis. Before you begin the SLP, you need to read the background materials thoroughly. The background material discussed the importance and process of strategy implementation. Four different organizational components were posited to be critical to successful implementation. In this module, we will be completing our strategic toolkit by researching sources of information about these components. Information about a firm’s internal structures, culture, people, and systems is often hard to find and takes some detective work. Often, mainstream business press like Business Week or Forbes will run a piece on a company and cover these characteristics. Sometimes you will find information in trade or industry publications. Blogs and other internet social networking sites are new sources of information not available as few as 5 or 6 years ago. Brint may be helpful here. If you have not yet used Brint and would like to try, click HERE. Your assignment is to locate some sources where you could find information about the organizational components discussed in this module. The following list of questions may help you focus your search. Obtaining information about organizational components critical to implementation (adapted from Aaker, D.A. (2001) Developing Business Strategies. Wiley.) Structure What is the organization’s structure? How decentralized is it? What are the lines of authority and communication? What are the roles of teams, committees, and task forces? Systems How are budgets set? How is planning done? What measures are used to evaluate performance? People What are the skills, experience and knowledge of the firm’s employees? What is their depth and quality? What are their attitudes about the company and their jobs? Culture What are the company’s values and are they widely shared and accepted by employees? What are the key norms of behavior? What are some significant symbols? Wat is the dominant management style? How is conflict resolved? Step One. Review the questions above and do some research to see where you could find answers to them. You may not be able to answer all of the questions, but try to find at least one source per component that addresses most of its characteristics. Step Two. Create 1 page list of sources and indicate what information each one provides for each component. Evaluate each source in terms of its objectivity, reliability, and truthfulness. Module 5 – Background Strategy Implementation Strategy is implemented using organizational design (structure), people, culture, and control systems. Strategy must successfully work through these elements in order to produce performance. No matter how well a strategy is conceived, if the people can not implement it, the culture not support it, the structure not coordinate it, and the systems not measure and control it – the strategy will fail. We will start by considering how of each of these components individually link to strategy. Through the case analysis, we will examine the integration or “fit” between the various components and strategy. Structure Organizational structure refers to the way lines of communication and authority, and the manner in which work is divided up among organizational members and then coordinated. Different types of structures support different types of strategies. The key elements of structure that have the greatest effect on the success or failure of strategy implementation are centralization, boundaries, networks, and virtual organization. Centralization. Centralization refers to the level of concentration of decision-making. In a highly centralized organization, decisions are made by a relatively small number of people, usually concentrated at high levels of the organization. Standardization is common in centralized organizations, thus favoring economies of scale and efficient value chains. Decentralized organizations are characterized by flexible and autonomous decision making groups at operational levels in the organization. Such groups have the ability to rapidly adjust to changes in the marketplace and re well suited to strategies that require innovation. However, because of duplication, economies of scale are difficult to achieve. Emerging Structures Border-less Organizations: Taking cross-functional terms to a new level, the border-less organization does not just assemble team with members from different organizational levels and functions. Instead, the border less organization removes barriers both vertically between levels and horizontally between functions or departments. The implication for strategy implementation is increased information, transparency, and flexibility. Alliance Networks: These are collections of suppliers, distributors, customers, and even competitors who have the ability to bring needed assets to bear on an urgent problem where there is insufficient time to develop the needed resources and capacities in house. Organized and coordinated online, these networks can be mobilized and put to work instantaneously. Virtual Corporations: An extension of Alliance Networks, the virtual corporation is an extra-organizational coalition of people and organizations brought together expressly to work on a specific problem or project. They can be assembled rapidly and dispersed as soon as the project is over, representing the ultimate in flexibility and speed in strategy implementation. The following reading is an exposition of how various types of teams can be useful in strategy implementation: Pryor, M.G, Singleton, L.P., Taneja, S. and Toobs, L.A. (2009). Teaming as a strategic and tactical tool: An analysis with recommendations. International Journal of Management, 26 (2), 320-334 Available at
fM1925/url= Please click here for a presentation on Organizational Design by Professor Anastasia M. Luca, PhD MBA Strategic Controls (Systems) Three organizational systems are essential to controlling strategy implementation. Accounting and budgeting systems. These systems can be complex and not easily adapted, If a new strategy requires data that is not easily accessible through existing accounting systems, it can slow or even jeopardize successful implementation. If a new proposed strategy does not fit a familiar pattern, decision-making can be become risky and unpredictable. Information Systems. Information technology is palying an ever-greater role in strategy implementation. IT provides point of sale information between retailers and manufacturers, streamlines logistics and distribution, controls inventories. IT systems must be capable of providing the right information in the right form to the right people at the right time. Measurement and Reward Systems. Rewards can be used to shape behavior in the direction of meeting strategic objectives. To do this, rewards must be connected to measures of goal attainment (e.g. specific increases in market share), and proper time horizons (future rewards for future goals). Please click here for a presentation on Strategic Controls by Professor Anastasia M. Luca, PhD MBA People Strategies that are based on distinctive competencies or unique capabilities anre often dependent on people and their skills to carry them out. Thus, for successful implementation, sufficient numbers of people, with the right skill setsare essential. In House or Import? Hiring raw talent and growing employees with the needed qualifications maximizes fit, but it can take years. Retraining existing workers with new skills can be problematic when old employees resist “learning new tricks”. Hiring needed skills fro outside is faster, but there is no guarantee they will fit the existing organization or culture. Motivation. It is not enough to have the right number of people with the right skills, they must be motivated to work twoard successful strategy implementation. Much is known about motivation, and many tools are available including tangible or extrinsic rewards, fear, self-fulfillment or intangible rewards. etc. Perhaps the motivator with the most potential for eliciting long-term commitment to fulfilling the firm’s strategic goals is empowerment, which gives employees the discretion and autonomy to use their initiative. The following article highlights the importance of having the right people in achieving strategic goals: Garrow, V. and Hirsh, W. (2008). Talent management: Issues of focus and fit. Public Personnel Management, 37(4), 389-403. Available at Culture The fit between an organization’s culture and its strategy is critical. If a firm is depending on innovation to achieve differentiation, but the culture is risk averse of punishing of mistakes, the strategy will not work. The culture can support the strategy when three elements are in alignment: Shared values that are in accordance with the corporate vision and strategic focus. A management style that fosters behavior that will support the competencies that confer competitive advantage. Norms can act as strong controls for strategic implementation. They encourage behavior that is in alignment with shared values. People can circumvent rules, and they can not be watched all of the time, but norms can promote the desired behavior even when nobody is watching! Symbols model for employees what values and norms are important. Some important symbols include the vision and style of the founder of the company, folklore or stories that are repeated that embody company values, rituals and routines show what events and behaviors are desired and celebrated, the type of questions asked signals employees as to what is important to pay attention to in tier jobs. The following reading ties together the importance of systems, strategy, structure and culture. It is highly readable and will help you see how all of these elements are interdependent and must align to achieve successful implementation: Heneman, R.L., Fisher, M.M., and Dixon, K.E. (2001). Reward and organizational systems alignment: An expert system. Compensation & Benefits Review, 33(6), 18-29. Available from Required Readings Garrow, V. and Hirsh, W. (2008). Talent management: Issues of focus and fit. Public Personnel Management, 37(4), 389-403. Available at Heneman, R.L., Fisher, M.M., and Dixon, K.E. (2001). Reward and organizational systems alignment: An expert system. Compensation & Benefits Review, 33(6), 18-29. Available from Pryor, M.G, Singleton, L.P., Taneja, S. and Toobs, L.A. (2009). Teaming as a strategic and tactical tool: An analysis with recommendations. International Journal of Management, 26 (2), 320-334 Available at Luca, A., M. (2006). Organizational Design. Power Point Presentation. Luca, A., M. (2006). Strategic Controls. Power Point Presentation. the question is also a seperate question. its called traded defecation please write the answer on a separate paper. the answer should be a paragraph( 10 sentences) Turn in your list to course-net by the due date for the module. SLP Expectations: Note that this does not need to follow the conventions of a formal paper, (a list or table will do), but you must provide full references for any source you locate.
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Strategic Analysis of the California Pizza Kitchen (CPK)
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