STRATEGY IMPLEMAENTATION INTRODUCTION

ISSUE IN STRATEGY IMPLEMENTATION

FORMULATION AND IMPLEMENTATION

OF STRATEGY

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INTRODUCTIONImplementation 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.

Strategy Implementation is the other half of strategy formulation. It is turn a dream into reality Objectives into results.

ISSUES IN STRATEGY IMPLEMENTATION1. Project implementation2. Procedural implementation3. Organizational growth4. Organizational structural and strategies5. Entrepreneurial structure6. Vertical/tall organizations7. Horizontal/Flat organizations

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1. PROJECT IMPLEMENTATION A project is time-bound and specific investment is

predetermined.

According to the project management Institute

of the US as, A project is one- shot time limited, goal oriented, major undertaking, and requiring the commitment of skills and resources.

Project reports are prepared for internal and

external purposes. Internal Top Mgt. Or BOD External Financial Institutions

PHASES OF PROJECT

1. Conception Phase Strategy Formulation2. Definition Phase Screening3. 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 StructureGrowth strategy Flexible StructureComplex Strategy Matrix StructureStable Strategy - Mechanistic Structure

5. ENTREPRENEURIAL STRUCTURE

When Small business,

(Entrepreneur Organizational structure) Success Increased Demand Develop business & increase the size of the firm. For business Growth, demand for new employees

should generated.

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Business Growth result in expansion of organization structure both vertically and Horizontally.

(Entrepreneurial organizational structure-with growth)

STRATEGIC INDICATION

Advantages:Timely decision-makingSensitive 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.

Thus, this structure is mostly suitable to the strategy catering to the needs of a local market by being small.

6. VERTICAL / TALL ORGANIZATION(Vertical/ Tall organizational structure)

It refer to increase in the length of the organizations hierarchy chain of command.

The hierarchical chain of command represents the companys authority-accountability relationship between superiors and subordinates.

Authority is more centralized in 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 ORGANISATIONIt refer to an increase in breadth of an organizations structure.No. of level are few.The Span of control of is relatively large.

The increasing bio- professionalization and wide acceptance for empowerment allowed even the large business firms to require the number of hierarchical levels of their organization.Large sized firms also adopting this organization by delayering. In fact, this structure is well suited for the small size business firms.

STRATEGIC IMPLICATION

Advantage:

Quick decision makingLow administrative costFreedom and autonomy to the managers to

operate

Appropriate for organizations with horizontal and

vertical growth strategies , stars and cash cows. Thus, these structures are useful for competitive

and dynamic business firms.

5. FORMULATION AND IMPLEMENTATION OF STRATEGY The strategy formulation and the relationship between strategy formulation and strategic implementation should be studies. This is because, the formulation and implementation process are intertwined in real life. The two linkages' exist between strategy formulation and implementation are:Forward linkageBackward linkage

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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BACKWARD LINKAGE:

The backward linkage deal with the influence of implementation on strategy formulation.Just as implementation determined by the implementation process.

Both are never ending processes. However, the interdependence of formulation

and implementation of strategy does not mean that managers are not to distinguish between the two.

DifferenceStrategy formulation

Positioning forces before the action.Focuses on effectiveness.Primarily an intellectual process.Requires good intuitive and analytical skills.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 _________ 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 (d) None of the above

3. ________deal with the impact of strategy formulation on implementation. (a) Forward linkages (b) Backward linkages (c) Both of the above (d) None of the above

Which type of organisation is appropriate for the firms having dog condition?

(a) Horizontal organisation (b) Vertical organisation (c) Entrepreneurial structure (d) None of the above

ANSWER KEY1. d 2 c3. a4. b

Please clarify yourDoubt

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