Why strategy implementation is more difficult than strategy formulation? Read more: http://wiki.answers.

com/Q/Why_strategy_implementation_is_more_difficult_than_strategy_for mulation#ixzz1tjWlyACY

Answer: Improve Consider that when you formulate strategy:

there are numerous models and frameworks to guide you plenty of consultants at hand you are working with a small group of people the people you are working with are typically the best in the company it is an area that has been under the spotlight for many years and has been well tested it is percieved as exciting

In contrast when you implement strategy:

there are very limited frameworks to use there are also only a few consultants specializing in strategy implementation implementation invoves changing the behavior and action of almost all, or everyone, in the company you must find many different ways to communicate the message it is often perceived as unexciting

Read more: http://wiki.answers.com/Q/Why_strategy_implementation_is_more_difficult_than_strategy_for mulation#ixzz1tjWeCmE8

Review and Discussion Chapter 2 3. Why do you think organizations that have a comprehensive mission statement tend to be high performers? Does having a comprehensive mission cause high performance? Answer: Having a comprehensive mission statement does not guarantee or cause high performance. However, a comprehensive mission statement can contribute significantly to high performance. As described in the chapter, a comprehensive mission statement provides numerous benefits that usually translate into high performance. 6. Explain the principal value of a vision and mission statement.

Answer: Many organizations develop both a mission statement and a vision statement. Whereas the mission statement answers the question, What is our business? the vision statement answers the question, What do we want to become? Both the vision statement and the mission statement ensure unanimity of purpose within the organization and make important statements about who the firm is and what it wants to become to outside stakeholders. 15. List the benefits of having a clear mission statement. Answer: Mission statements provide the following benefits: 1) agreement on the purpose of the organization, 2) standard for allocation of resources, 3) basis for organizational climate, 4) focal point for individuals to identify with the organizations purpose and direction, 5) facilitation of the translation of objectives into a work structure, and 6) specification of organizational purposes into objectives. Mission statements are essential in guiding strategic planning.

16. How often do you feel a firms vision and mission statement should be changed? Answer: This depends on the individual firm. Vision and mission statements should be evaluated on a regular basis to determine if they are still appropriate. Firms may wish to change the statements in times of crisis and in times of success. Ultimately the vision and mission should be in tune with the company and its environment.

Review and Discussion Chapter 1 3. Why strategy implementation often is considered the most difficult stage in the strategicmanagement process? Answer: Strategy implementation is often considered to be the most difficult stage in strategic management because it requires discipline, sacrifice, commitment, and hard work from all employees and managers. It is always more difficult to do something than to say youre going to do it.

4. Why is it so important to integrate intuition and analysis in strategic management? Answer: Neither intuition nor analysis alone is sufficient for making good strategic decisions. Intuition, based on ones past experiences, judgment, and gut feelings, does not include the use of analytical strategic-management concepts that have been developed and successfully tested in the business world. To ignore these techniques that are based on historical learning is like trying to reinvent the wheel. However, no analytical tools can capture all aspects of a given organizations culture and situation. Nor can analytical tools assimilate all the subjective information that must be considered in strategic management, such as personalities, emotions, values, beliefs, customs, and ethical factors. Thus, it is very important to integrate intuition and analysis in strategic management.

23. Why is it that a firm can sustain a competitive advantage normally for only a limited period of time?

Answer: A firm can sustain a competitive advantage for only a certain period of time due to rival firms. These competing firms will attempt to imitate the competitive advantage in order to undermine the leader. 24. Why is it not adequate to simply obtain a competitive advantage? Answer: Because other firms will constantly attempt to undermine firms with competitive advantages and imitate those advantages, organizations must constantly strive to achieve a sustained competitive advantage.

A. Case Abstract Este Lauder (www.elcompanies.com) is a comprehensive business policy and strategic management case that includes the companys fiscal year-end June 2007 financial statements, competitor information and more. The case time setting is the year 2008. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in New York City, Este Lauders common stock is publicly traded on the New York Stock Exchange under the ticker symbol EL. Este Lauder produces a diverse line of shampoo, perfumes, lip gloss and other skin care products. A small sampling of the brand names marketed by Este Lauder include: Este Lauder, Clinique, American Beauty, and Flirt. The products are sold through various distribution channels, including specialty stores, department stores, pharmacies, the and Web. Este Lauder operates in the Americas, Europe, Middle East, Asia, and Africa. The company has over 28,000 employees and is led by CEO William Lauder whose base pay was over $3.5M in 2007. The firms two major competitors are conglomerate giant Procter & Gamble and LOreal.

B. Vision Statement (proposed) Este Lauder is committed to its name being synonymous with the best quality skin care products in the world.

C. Mission Statement (actual) Bringing the best to everyone we touch. (proposed) Our mission is to deliver the highest quality skin care products, fragrance, cosmetics, and hair care products (2) for men and women of all ages and nationalities (1) around the world (3). By using the latest technology (4) in cosmetic design, we are able to ensure our customers high demand for superior and safe products will be met or

exceeded in each and every product purchased (7). Providing the best products possible to our customers will enable our philosophy (6) of improving the sprit of our customers mind, body and soul to continue from generation to generation (5). By hiring the most experienced chemists (9) to design new products that are safe and effective, we strive to continue growing our product line. We strive to be socially conscious by providing products that are environmentally safe and free from animal testing (8). 1. Customer 2. Products or services 3. Markets 4. Technology 5. Concern for survival, profitability, growth 6. Philosophy 7. Self-concept 8. Concern for public image 9. Concern for employees

D. External Audit Opportunities 1. Weak US Dollar makes US based products more affordable to customers in Canada and Europe. 2. Interest rates remain low in the US. 3. Increasing numbers of people are buying products online for convenience, cost savings, and confidentiality. 4. Men are increasingly becoming more concerned with their looks and stereotypes of men using skin care products are diminishing. 5. In 2006, China experienced a 15 percent growth in professional skin care sales. 6. The Hispanic population in the US is rapidly growing. 7. Customers are demanding products not tested on animals and which are environmentally friendly. 8. Customers are becoming more interested in herbal products that are derived from natural sources. 9. Aging US population opens new markets for developing skin care products for the elderly. 10. Many new start up companies with specialty products are created each year.

Threats 1. Consumer complaints and inquires into the use of animal testing for new products. 2. FDA plans to require cosmetic corporations to add a label stating the safety of this product has not been determined. 3. Many new start up companies with specialty products are created each year. 4. Concerns about the use of aerosols, fluorocarbons and other chemicals in the production of cosmetic products. 5. Top competitors in the cosmetics industry are diversified with many brand names and a wide range of products. 6. Products can be purchased at significantly lower cost over the Internet, harming revenues and traditional distributors. 7. Growing trend among sections of the population for a more natural look and reduction in their use of make up and related products. 8. Customers tend to be extremely brand loyal.

CPM Competitive Profile Matrix

* Estimates for Procter & Gamble focused on similar product lines they share with Este Lauder not the company as a whole.

Este Lauder

Revlon

Procter & Gamble

Critical Success Factors Market Share Price Financial Position Product Quality Product Lines Consumer Loyalty Employees TOTAL

Weight 0.20 0.10 0.20 0.15 0.10 0.20 0.05 1.00

Rating 4 2 3 4 4 4 4

Weighted Score 0.80 0.20 0.60 0.60 0.40 0.80 0.20 3.60

Rating 4 3 1 2 3 3 4

Weighted Score 0.80 0.30 0.20 0.30 0.30 0.60 0.20 2.70

Rating 3 4 4 2 4 2 4

Weighted Score 0.60 0.40 0.80 0.30 0.40 0.40 0.20 3.10

External Factor Evaluation (EFE) Matrix

Key External Factors

Weight Opportunities

Rating

Weighted Score

<!--[if !supportLists]-->1. <!--[endif]-->Weak US Dollar makes US based products more affordable to customers in Canada and Europe. <!--[if !supportLists]-->2. <!--[endif]-->Interest rates remain low in the US. <!--[if !supportLists]-->3. <!--[endif]->Increasing numbers of people are buying products online for convenience, cost savings, and confidentiality. <!--[if !supportLists]-->4. <!--[endif]-->Men are increasing becoming more concerned with their looks and the stereotypes of men using skin care products are diminishing. <!--[if !supportLists]-->5. <!--[endif]-->In 2006, China experienced a 15 percent growth in professional skin care sales.

0.05

0.15

0.08 0.12

3 3

0.24 0.36

0.05

0.20

0.05

0.20

<!--[if !supportLists]-->6. <!--[endif]-->Hispanic population in the US is rapidly growing. <!--[if !supportLists]-->7. <!--[endif]->Customers are demanding products not tested on animals and which are environmentally friendly. <!--[if !supportLists]-->8. <!--[endif]->Customers are becoming more interested in herbal products that are derived from natural sources. <!--[if !supportLists]-->9. <!--[endif]-->Aging US population opens new markets for developing skin care products for the elderly. <!--[if !supportLists]-->10. <!--[endif]-->Many new start up companies with specialty products are created each year. Threats <!--[if !supportLists]-->1. <!--[endif]->Consumer complaints and inquires into the use of animal testing for new products. <!--[if !supportLists]-->2. <!--[endif]-->FDA plans to enforce cosmetic corporations to add a label stating the safety of this product has not been determined. <!--[if !supportLists]-->3. <!--[endif]-->Many new start up companies with specialty products are created each year. <!--[if !supportLists]-->4. <!--[endif]-->Concerns about the use of aerosols, fluorocarbons and other chemicals in the production of cosmetic products. <!--[if !supportLists]-->5. <!--[endif]-->Top competitors in the cosmetics industry are diversified with many brand names and a wide range of products. <!--[if !supportLists]-->6. <!--[endif]-->Products can be purchased at significantly lower cost over the Internet cutting into revenues and

0.05 0.03

3 3

0.15 0.09

0.03

0.12

0.05

0.15

0.05

0.10

0.03

0.09

0.02

0.02

0.05

0.10

0.03

0.12

0.10

0.20

0.12

0.12

harming traditional distributors. <!--[if !supportLists]-->7. <!--[endif]-->Growing trend among sections of the population for a more natural look and reduction in their use of make up and related products. <!--[if !supportLists]-->8. <!--[endif]->Customers tend to be extremely brand loyal.
TOTAL

0.04

0.12

0.05

0.15

1.00

2.68