CHAPTER 12
Implementing Strategy in Companies That Compete in a Single Industry
SYNOPSIS OF CHAPTER
Chapter 12 examines how managers can best implement their strategies in single-industry firms in order to achieve a competitive advantage and superior performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework.
Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry.
The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance.
The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry.
TEACHING OBJECTIVES
1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other.
2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level.
3. Describe the use of structure, control, and culture in implementing a single-business firm’s generic business strategy.
4. Discuss the use of restructuring and reengineering in improving the performance of a single-business firm.
OPENING CASE: STRATEGY IMPLEMENTATION AT DELL COMPUTER
Dell Computer grew rapidly from its founding as one-person, dorm-room operation in 1984. As the company has grown, Dell’s structure, control systems, and culture has changed to keep the firm on track to reaching