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Operationalizing strategy

& Annual Objectives


By
Abhinaya Nimbalkar 2AG18MBA01
Abhishek Dhongadi 2AG18MBA02
Aishwarya Burshi 2AG18MBA03
Aishwarya Melgiri 2AG18MBA04
Amit Chougala 2AG18MBA05
Strategy implementation is the translation of chosen
strategy into organizational action so as to achieve
strategic goals and objectives.

Strategy implementation is also defined as the manner in


which an organization should develop, utilize, and

amalgamate organizational structure, control

systems, and culture to follow strategies that lead to


competitive advantage and a better performance.
What must be done in Strategy
Implementation?
- Programs
• Purpose is to make the strategy
“action- oriented.
- Budgets
- Planning a budget is the last real check a
firm has on the feasibility of the selected
strategy.
- Procedures
- Detail the various activities that must
be carried out to complete a
corporation’s programs.
 Operationalizing Strategy

 Developing Functional Strategies

 Annual Objectives

 Developing and communicating concise policies

 Institutionalizing the strategy

 Leadership and Culture

 Ethical process and CSR


 Operationalizing Strategy

• Transcending the various components of the strategy

to different level

• Mobilization and allocation of resources

• Structuring authority, responsibility

• Task and information flows

• Establishing policies and evaluation and control.


 Developing Functional Strategies

Organizational plan for human resources, marketing,

research and development and other functional areas.

The functional strategy of a company is customized to a

specific industry and is used to back up other corporate

and business strategies.


 Developing Functional Strategies


Marketing strategy

Financial strategy

R&D Strategy

Operations strategy

Purchasing strategy

Logistics strategy

HRM strategy

Information systems
strategy
 Developing Functional Strategies


Marketing strategy
Involved with pricing, selling, and distributing a product.


Market development strategy
• Capture a larger share of existing market through market
saturation and market penetration.
• Develop new markets for current products

Product development strategy
• Develop new products for existing markets
• Develop new products for new markets

Advertising or Promotion strategy
• Push marketing strategy
 Investing in trade promotion to gain or hold share
• Pull marketing strategy
 Investing in consumer advertising to build brand
awareness
 Developing Functional Strategies


Marketing strategy
Other marketing strategies

• Should a company use distributors and dealers to sell its products


or should it sell directly to by using direct marketing model
• Selling their products through big departmental stores.

• Skimming pricing or penetration pricing strategy


 Developing Functional Strategies


HRM strategy

Addresses issues of:


 Low-skilled employees
• Low pay
• Repetitive tasks
• High turnover

 Skilled employees
• High pay
• Cross trained
• Self-managing teams
 Annual Objectives

Annual operating objective designed to contribute to the

long term objectives is a critical step in strategy

implementation. Long term objectives indicate the

planned long term positioning of the organization.


 Annual Objectives - Annual objectives are essential
for strategy implementation because they:

• Major instrument for monitoring progress


towards achieving long term objectives
• Serve as standards of performance
• Primary tool for evaluating employees
• Serve as a source of employee motivation and
identification
• Provide a basis for organization design
• Represent basis for allocating resources
• Establish priorities at all levels