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IMPLEMAENTATION
INTRODUCTION
INTRODUCTION
Implementation of business strategy is
the terminal point in the whole scheme
of strategic planning process followed by
strategy evaluation and control.
In
a
simple
way,
Strategy
Implementation can be defined as a
process through which a chosen strategy
is put into action.
This definition is very simple but does
not specify what actions are required in
strategy implementation.
According to Steiner,
The implementation of policies
and strategies is concerned with the design
and management of systems to achieve the
best
integration
of
people,
structures,
processes,
and
resources,
in
reaching
organizational purpose.
According to Charles W.L.Hill and Gareth
R. J.,
The way in which a company
creates the organizational arrangements that
allow it to put its strategic plan into operation
most efficiently and to achieve its objectives.
ISSUES IN STRATEGY
IMPLEMENTATION
1. Project implementation
2. Procedural implementation
3. Organizational growth
4. Organizational structural and
strategies
5. Entrepreneurial structure
6. Vertical/tall organizations
7. Horizontal/Flat organizations
5
1. PROJECT
IMPLEMENTATION
A project is
investment is
predetermined.
time-bound
and
specific
PHASES OF PROJECT
1. Conception Phase Strategy
Formulation
2. Definition Phase Screening
3. Planning & Organizing Phase
4. Implementing Phase
5. Clean-up Phase
2. PROCEDURAL
IMPLEMENTATION
The strategists should study the
following procedural aspects before
implementing the strategy:
-Licensing procedures
-Foreign collaboration procedures
-FERA requirement
-MRTP requirements
-Capital issue requirements
-Import and export requirements
-Incentives and facilities benefits
3. ORGANIZATIONAL
GROWTH
Organizational structure is a means to
an end of the achieving organizational
mission and objectives.
There are two types of organizational
structure
-Formal organizational structure
-Informal organizational structure
4. ORGANIZATIONAL
STRUCTURE & STRATEGY
STRUCTURAL IMPLEMENTATION
Simple strategy Simple Structure
Growth strategy Flexible Structure
Complex
Strategy
Matrix
Structure
Stable Strategy Mechanistic
Structure
5. ENTREPRENEURIAL
STRUCTURE
When Small business,
STRATEGIC INDICATION
Advantages:
Timely decision-making
Sensitive to environmental demands
and operational flexibility
Disadvantages:
Owner-manager normally is not a
professional manager.
This structure cannot respond to the
increasing demand beyond a point.
6. VERTICAL / TALL
ORGANIZATION
STRATEGIC IMPLICATION
Advantage:
Effective analysis of factors and efficient decision
making are possible.
Formulate effective policies, programmes and
control mechanism.
It provides promotional avenues.
All employees are centrally directed, so
coordination becomes possible.
Too many controls may reduce the cost of
operation.
Disadvantages:
Too many hierarchical levels results in
bureaucratic rather than commercial
characteristics to the business firm.
Tight operational controls delay the
decision making process.
It appropriate for the firms having growth
opportunities, and dogs.
Firms with cost minimization strategy and
firms in maturity stage can adopt this
organizations.
7. HORIZONTAL / FLAT
ORGANISATION
STRATEGIC IMPLICATION
Advantage:
Quick decision making
Low administrative cost
Freedom and autonomy to the managers to
operate
5. FORMULATION AND
IMPLEMENTATION OF
STRATEGY
1.FORWARD LINKAGE:
Forward linkage deal with the impact of
strategy formulation on implementation.
With the formulation of new strategies,
many changes have to be affected
within the organization.
A whole lot of changes have to be
undertaken
to
operationalize
and
institutionalize
the
formulated
strategies.
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2. BACKWARD LINKAGE:
Difference
Strategy
formulation
1.Positioning forces
before the action.
2.Focuses on
effectiveness.
3.Primarily an
intellectual process.
4.Requires good intuitive
and analytical skills.
5.Requires coordination
among few individuals.
Strategy
Implementation
1.Managing forces during
the action.
2. Focuses on efficiency.
3.Primarily an operational
process.
4.Requires motivation and
leadership skills.
5.Requires coordination
among many individuals.
MCQ
1. _________ is not a phases of project.
(a) Conception Phase
(b) Implementing Phase
(c) Both (A) & (B)
(d) None of the above
2. Primarily, Strategy formulation is .
Process.
(a) Operational process
(b) simple process
(c)Intellectual process
ANSWER KEY
1.
2
3.
4.
d
c
a
b
Please
clarify
your