Strategy implementation concepts and best practices

Strategy Implementation

There are a number of ways to uncover information about the firm's internal structures, culture, people and systems. These different sources will be examined with respect to JM Smucker. The most logical starting point for any investigation into a company is the annual report. The firm's internal structure is something that can be inferred from the company's vice-presidents, who are listed in the annual report. In the case of Smucker's, this is in the back of the 2009 Annual Report. The annual report reveals that divisions are split along two lines -- by distribution channel and by product. The product differentiations are done only within the confines of one channel -- U.S. retail. Supporting this, companies often report their operating results by segment. In an earlier part of the annual report, Smuckers reports by segment. In the write-up to the segment reporting, the company discusses the corporate reorganization that occurred following the acquisition of Folger's. This re-org saw the introduction of three distinct product categories within the U.S. Retail channel.

Using the power of inference, it is observed that the company does not report Canadian earnings separately nor is there a VP for Canadian operations. Thus, the company does not have a separate unit -- at least not one of significance -- for Canada. There are not any other geographic segments within the U.S. either. This indicates that the company views North America as a singular market. This hints at a focus on economies of scale. The company's vice presidents are all situated in Orrville. This provides strong indication of a centralized structure, since both keeping all VPs in one place and focusing on economies of scale are consistent with a textbook centralized structure's function and objectives.

The annual report continues to deliver valuable information with respect to the people component of the company. The key fact is found in the listing of directors and offices -- the co-CEOs are both Smuckers. This is a family company. To help understand the implications of this and gain insight as to what this means for organizational culture, articles in the business press can shed some light, for example a piece from 2004 in Business Week that discusses the corporate culture and its antecedents in J.M. Smucker's strong religious beliefs, an influence that continues to run through the family today (Weber, 2004). Both academic and lay literature can be found to gain insight into how corporate culture and the people component of the organization in family firms (Herath, Herath & Azeez, 2006; Aronoff & Ward, 1993).

Control systems are more difficult to discern, especially in relatively private organizations. Ideally, the best source would be personal interviews with managers or staff. In lieu of that, inference is the best option. As noted, literature can help to understand the types of mechanisms used in different types of companies, although such inferences could lead to wildly inaccurate conclusions.