Prepared By:-

Mittali Amit Pranav Abhishek

I.

Strategic management is far from complete after strategies have been formulated and a concrete strategies plan has to been prepared. Strategists have to put plan into action. Different aspects of Implementation are defined below
Project Implementation which deals with a number of steps starting from conception to clean up.(plans, programmes, projects) Procedural Implementation which deals with the different aspects of the regulatory framework that Indian companies have to consider.(legislation, government policies, administrative orders, procedure for corporate sectors)

II.

III.

The issues involved in Resource Allocation which deals with the procurement, approaches, means, factors and the difficulties in resource allocation.

Interrelationship between Formulation and Implementation

In real life, the formulation and implementation processes are intertwined. Two linkages exit between formulation and implementation. Forward linkages deal with the impact of the formulation on implementation. Backward linkages are concerned with the impact of the implementation on formulation.

I.

II.

Forward Linkages

The different elements in strategy formulation determine the course that an organisation adopts for itself. With the formulation of new strategies, many changes have to be effected within the organisation. The organisational structure has to undergo a change in requirement of a modified or new strategy. The style of leadership has to be adapted to the formulation of strategies. The strategy formulated provide the direction to implementation.

Backward Linkages

Organisations tends to adopt those strategies which can be implemented with the help of present structure of resources combined with some additional efforts. Formulation is a managerial task requiring analysis and thinking, implementation primarily rests on action and doing.

Aspects of Strategy Implementation

A Strategist has to bring his or her task a wide range of knowledge, skills, attitudes and abilities. The implementation tasks put to test the strategists abilities to allocate resource, design structure and systems, formulate functional policies, take into account the leadership style required and plan for operational effectiveness. Strategies do not directly lead to action. They are activated through implementation.

Pyramid of strategy Implementation

Strategies

Plans Programmes Projects Budgets Policies, procedures, rules and regulations

Strategies lead to plans. Stability strategies Expansion Strategies Diversification strategies

formulation of various plans. various expansion plans. new project development plans.

Plans result in programmes which includes goals, policies, procedures, rules and steps to be taken for action.

Programmes leads to formulation of projects. Projects in specific programmes for which time schedule and cost are predetermined. It requires allocation of funds based on capital budgeting by organisation. Projects create the infrastructure for the day-to-day operations in the organisation. Implementation of strategies is not limited to formulation of plans, programmes and projects.


I. II. III. IV. V. VI.

There are various activities which are performed only once. Project implementation Procedural implementation Resource allocation Structural implementation Behavioural implementation Functional and operational implementation While dealing with above aspects, we have to cover concepts, methods, techniques approaches. The assumption is that a strategy creates its own requirements of the various aspects of implementation. If the strategy is modified or replaced, each of the aspects of implementation have to undergo a change.

Project : A temporary endeavor undertaken to achieve a particular aim and to which project management can be applied, regardless of the size, budget or timeline for the project. (E.g. factory expansion, machines installation, product development, business process outsourcing, software development, etc.)

Project by management institute of US- a one-shot, timelimited, goal-directed, major undertaking, requiring the commitment of varied skill and resources.

Project Management: Application of knowledge, skills, tools and techniques to a broad range of activities in order to meet requirements of a particular project. The goals and objectives are derived from the plans and programmes which are based on the strategies adopted.

1.

Conception phase:- It is an extension of the strategy formulation phase. Ideas generated during the process of strategic alternative and choice consideration from the core of the future projects that may be undertaken by the organisation. Definition phase:- Identified and arranged projects have been analysed which examines the marketing, technical, financial, economic and ecological aspects to find out financial situation, banks and investment. After this, the feasibility studies conducted which are done for in-depth, detailed project analysis and result in an adequately formulated project.

2.

After the definition phase, the project is cleared for implementation. But before being implemented, the project has been further planned. 3. Planning and organising phase:- Detailed planning related to infrastructure, engineering designs, schedules and budgets, finance has been determined. A project structure which would deal with the organisation and manpower, systems and procedures has also to be created for implement the project.

4. Implementation phase:- The detailed engineering, order placement for equipments and material for contract, civil and other construction have to be undertaken during this phase leading to the testing, trial and commissioning of the plant. 5. Clean-up phase:- This phase deals with disbanding the project infrastructure and handing over the plan to the operating personnel.

Organization must be aware of procedural framework within which plans, programmes, and projects have to be approved by the Government at Central, state and local levels.

Apex level committee like Cabinet Committee on Economic Affairs. Regulatory agencies such as Central Electricity Regulatory Commission (CERC ), Telecom Regulatory Authority of India ( TRAI ), Insurance Regulatory Development Authority ( IRDA ).

State level- Director of Industries Government policies, laws, rules, regulations, procedures constantly keep changing hence recourse of special advice from chartered accountants, company secretaries, industry experts & consultants will be needed

REGULATORY ELEMENTS:
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12)

Formation of a company Licensing procedures Securities and Exchange Board of India (SEBI) requirements Monopolies and restrictive Trade Practices (MRTP ) requirements Foreign collaboration procedures Foreign Exchange Management Act (FEMA) requirements

Imports and Exports requirements

Patenting and Trademarks requirements Labour legislation requirements Environmental protection and pollution control requirements Consumer protection requirements Incentives and facilities benefits

1. Formation of a Company:

According to the Companies Act 1956, it consists of : Promotion : preliminary steps for the purpose of Registration and Floatation
Registration : MOA , AOA and agreements with Registrar of Companies who issues certificate of incorporation

Floatation : raising of capital to commence business .

2. Licensing Procedures:
The system of planning depends on 3 policy documents:
a) b)

Industrial policy resolution: Industries directly under Government Industries promoted by Government where private sector supplements the efforts.

c)

Private sector

Industries ( Development and Regulation ) Act ( IDRA)

Licensing system for the development & regulation of scheduled industries ( Foreign collaboration, Certain capital goods import ) Sec (30) of IDRA deals with the Registration & Licensing of industrial undertaking rules. Industrial license abolished except for few like Security, defense, environmental concern and certain items of conspicuous consumption. Authority- Secretariat of industrial assistance ( SIA )

Statements of 1978, 1980, 1982 and 1991- Industries left to private sector

The SEBI Act 1992, replaced with the Capital Issues Control Act, 1956 Since 1992, SEBI is a statutory body , a quasi judicial body, under Securities Law Ordinance 1995. 3 main Objectives of SEBI :1. Protect the interests of investors in securities

2. Promote development of securities market

3. Regulate securities market

Deals with-

Issue of capital, transfer of shares and other significant aspects of Indian Capital Market.

Jurisdiction of SEBI :-

Primary market
Secondary market Mutual Fund, FII Foreign brokers

For purpose of strategy implementation : - provision of financial resources - mergers and amalgamations as they regulate capital reorganization plans for mergers.

Purpose : To prevent MRTP and concentration of Economic Power.

Now : Mainly- Prevention of monopolistic, restrictive and unfair trade practices

MRTP Act is implemented by MRTP Commission.

Restrictive trade practices

Collusion or cartel formation by companies Price discrimination among different group of customers Predatory pricing of selling below cost to beat competition Tie-up of slow moving with fast moving products Purchase of whole range of products Exclusive Selling of a particular product of brand Area restrictions

Fixation of resale prices

Comprehensive Competition law ( CCI ) to replace MRTP Act

Purpose of fostering fair competition among Indian Industry.

It will look after any practices curbing competition, as per WTO norms

Under it a Competition Commission is to be setup to investigate in mergers and acquisitions where total assets of the acquiring & acquired companies and turnover is in excess of prescribed limits.
The commission shall be empowered to direct enterprises to discontinue certain practices, levy a fine & recommend on such related aspects.

Many strategic alternatives like expansion / diversification in high technology industries call for foreign collaboration and investment and require prior Govt. approval.
Regulatory framework deals with need for foreign technology, Royalty payments, Terms and conditions of collaboration agreement and foreign investment

Two types of Foreign Investments:

FDI (Foreign Direct Investment) invest through
wholly owned subsidiary,

Joint Venture
or acquisition

FII or Portfolio investment:

Investment by FII and investments in instruments such as Global depository receipts ( GDRs ), Foreign Currency convertible bonds (FCCB )
JV an important route for channelizing foreign investment into and outside India Major Regulatory authorities are : The RBI Foreign investment promotion board ( FIPB ) and Project approval board

FEMA replaces FERA in June 2000. Substantially liberalized rules regarding :

Dollar accounts by exporters, Remittance of foreign exchange for visits abroad, Agency commission, Export claims, Reduction in export value, Reimbursement expenses incurred on dishonored export bills, Consular fee, etc

The opening, holding, and maintaining of foreign currency accounts is governed by the Foreign Exchange Management Regulations, 2000.

7. Import and Export Requirements

Strategy implementation in areas, such as diversification and internationalization, requires the consideration of import and export requirements The central government has the powers to prohibit, restrict, regulate, exempt or promote international trade that constitutes imports and exports The EXIM policy enunciates the foreign trade policy of the country The policy implementation and the legal framework for imports and exports in India are largely based on the Foreign Trade Development and Regulation Act

8. Patenting and Trademarks Requirements

Patents, Trademarks, copyrights, designs etc are assuming greater significance in the Indian industry owning to international environmental changes

The increasing competition in the business environment has meant that it has become necessary to know the rights and privileges in relation to and the legal procedures for protecting products and ideas

9. Labour Legislation Requirements

An essential part of procedural implementation in any project as well as in a going concern is that of labour legislation
Labour legislation consists of over 150 laws related to different aspects

According to Indian constitution, labour is a common subject among the central and the state governments While the central government enacts, amends and repeals most of the legislation, the major administrative authority to adopt and implement the laws rests with the state governments

The current scenario is characterized by several significant developments The matter of procedural implementation regarding labour legislation has significant bearing on the implementation of strategies in the areas of objective setting, strategic choice, social responsibility, formulation and implementation of HR policies and various operational strategies

10. Environmental Protection and Pollution Control Requirements

The issue of physical environment has attained global and national importance owning to a variety of reasons
There are a host of Central and State laws dealing with the prevention and control of pollution and environmental control

Several issues of importance in strategic management are concerned with environmental protection and pollution control Some of the major ones are the designing of vision and mission statements, objective setting and constraints of objective achievement, environmental appraisal

11.Consumer Protection Requirements

In the course of strategy implementation, companies are increasingly required to conform to legislative measures to protect the consumers Consumers or customers constitute a significant aspect in various issues in strategic management
They are the subject of the organizations vision and mission, objectives are set to satisfy customers and the business definition is in terms customer needs and customer groups

12. Procedures for availing benefits from incentives and facilities

Project implementation to put strategy into action requires a consideration of Incentives Subsidies and Facilities

While providing incentives, the government does not play a regulatory but a promotional role

The fiscal, monetary and budgetary policies if the government are aimed at the stimulation of activity in the priority industrial sectors

Government also plays a promotional role of in terms of Purchasing Pricing Distribution Availability of raw materials Provision of infrastructural facilities

Overview of Project and Procedural Implementation

An important question that arises is how the strategists should react to regulation Strategists may adopt a submissive, confrontational or collaborative stance Project and Procedural implementation results in the necessary infrastructure and required permission for an organization to proceed with other aspects of strategy implementation.

Thank You