Subject: Strategic Management: Submitted To: Submitted by
Subject: Strategic Management: Submitted To: Submitted by
Subject: Strategic Management: Submitted To: Submitted by
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INDEX
11. conclusion
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STRATEGY IMPLEMENTATION
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2. Supplying resources, in sufficient quantity, to strategy-essential
activities.
3. Developing policies which encourage strategy.
4. Such policies and programs are employed which helps in
continuous improvement.
5. Combining the reward structure, for achieving the results.
6. Using strategic leadership.
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organisation are linked together. It highlights the relationships
between various designations, positions and roles. To implement
a strategy, the structure is to be designed as per the
requirements of the strategy.
Periodic Review of Strategy: Review of the strategy is to be
taken at regular intervals so as to identify whether the strategy so
implemented is relevant to the purpose of the organisation. As the
organization operates in a dynamic environment, which may
change anytime, so it is essential to take a review, to know if it
can fulfil the needs of the organization.
People: There are two questions that must be answered: “Do you
have enough people to implement the strategies?”and “Do you
have the right people in the organization to implement the
strategies?”
If it appears that the current employees lack the required skills and
competencies, they should be made to undergo the necessary
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trainings, seminars and workshops so that they will be better
equipped and ready when it’s time to put the strategic plan into
action.
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Systems: What systems, tools, and capabilities are in place to
facilitate the implementation of the strategies? What are the
specific functions of these systems? How will these systems aid
in the succeeding steps of the strategic management process,
after implementation?
Because you want your plan to succeed, heed the advice here and
stay away from the pitfalls of implementing your strategic plan.
Here are the most common reasons strategic plans fail:
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Getting mired in the day-to-day: Owners and managers,
consumed by daily operating problems, lose sight of long-term
goals.
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impact relevant measures. Otherwise, they may resist
involvement and ownership.
It’s easier to avoid pitfalls when they’re clearly identified. Now that
you know what they are, you’re more likely to jump right over them!
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Strategy Formulation is a rational Strategy Implementation is
process. basically an operational process.
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PROJECT IMPLEMENTATION
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done an evaluation of the production (or real-world) environment.
When you are ready for implementation, the production
infrastructure needs to be in place.
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to production, since the solution might need to be brought down
for a period of time. You have to make sure all of your production
components are implemented successfully, including new
hardware, databases, and program code.
8. Monitor the solution. Usually the project team will spend some
period of time monitoring the implemented solution. If there are
problems that come up immediately after implementation, the
project team should address and fix them.
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5 BEST PRACTICES FOR SUCCESSFUL PROJECT
IMPLEMENTATION
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3. Prepare to keep planning: You have to set some
expectations on how the team should manage unexpected
issues, scope change, risks, quality, communication and so
on.
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PROCEDURAL IMPLEMENTATION
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5. Competition Act, 2002- The government has introduced this
act that aims at promoting competition by restricting anti
competitive practices. Large businesses must have a good
understanding of the competitive act.
6. Foreign Collaboration Procedures- For proposals to set up
projects with foreign collaborations require prior government
approval. The government authorities such as Reserve Bank of
India (RBI). Foreign Investment Promotion Board (FIPB) and
Project Approval Board are major regulatory bodies for foreign
collaborations including joint ventures abroad.
7. SEBI Requirement- Securities and Exchange Board of India
(SEBI) became active since 1992 with the passing of SEBI
Act.1992. the act empowered SEBI Act,1992. The act
empowered SEBI with necessary powers to regulate the
activities connected with marketing of securities &
investments of stock exchanges, merchant banking, portfolio
management , stock brokers and others connected with
securities.
8. Consumer Protection Act,1986- Business firms must have
good knowledge of consumer protection act, 1986. This act
was passed to provide better protection of the interests of
consumers. The act seeks to promote & protect rights of
consumers such as :-
The right to be protected against the marketing of
goods that are hazardous to life & property.
The right to be informed about the quality, quantity,
potency, purity standards and price of goods to
protect the consumer against unfair trade practices.
The right to be heard & be assured that consumers
interests will receive due consideration.
The right to seek redressal against unfair trade
practices or exploitation of consumers, etc…
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9. Pollution control requirement- The govt. Of India has passed
several laws relating to the protection of environment. The
business organizations should have a good knowledge of such
laws. To name few of them are as follows:
The water (prevention & control of pollution)
The Air (Prevention & control of pollution ), Act, 1981.
The Environment Protection Act, 1986, etc..
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STRUCTURAL IMPLIMENTATION
Structural implementation of strategy involves designing of
organisation structure and interlinking various units and subunits
of the organisation created as a result of the organisation structure.
Organisation structure is the pattern in which the various parts of
the organisation are interrelated or interconnected. Thus, it involves
such issues as to how the work of the organisation will be divided
and assigned among various positions, groups, departments,
divisions, etc. and the coordination, necessary to accomplish
organisational objectives: will be achieved. Thus, there are two
aspects of organisational design: differentiation and integration.
Differentiation refers to ‘the differences in cognitive and emotional
orientations among managers in different functional departments’
and integration refers to ‘the quality of the state of collaboration
that are required to achieve unity of efforts in the organisation: 1
Therefore, the organisation must emphasize on both the aspects: it
must design organisation structure and provide systems for
interaction and coordination among organization’s parts and
members.
The life cycle of organisations could be divided into four states that
are not distinct and may overlap.
Stage I :
Organizations are small-scale enterprises usually managed by a
single person who is the entrepreneur-owner-manager. These
organisations are characterised by the simplicity of objectives,
operations, and management. The form of the organisation is also
simple an could be termed as entrepreneurial. The strategies
adopted are generally of the expansion type.
Stage II:
Organizations are bigger than Stage I organisations in terms of size
and have a wider scope of operations. They are characterised by
functional specialisation or process orientation. The organisational
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form is simple functional (typically divided into the finance,
marketing, operations, and personnel departments) or process-
oriented (divided into process-based departments arranged in a
particular sequence according to the technology employed). The
strategies adopted may range from stability to expansion.
Stage III :
Organization are large and widely scattered organisations generally
having units or plants at different places. Each division is semi-
autonomous and linked to the headquarters but functionally
independent. The divisions may have a simple functional form
depending on their particular needs. The strategies adopted may be
either stability or expansion.
Stage IV:
Organizations are the most complex. They are generally large
multiplant, multiproduct organisations that result from the
adoption of related and unrelated diversification strategies. The
organisational form is divisional. The corporate headquarters
assume the responsibility of providing strategic direction and policy
guidelines through the formulation of corporate-level strategies. The
divisions (which may be companies, profit centres or SBUs)
formulate their business-level strategies and may adopt Stage I, II
or III types of structures. The stage of development theories present
a convenient way to understand the way the structure may evolve
as the organisation moves from one stage to the next. But, in
practice, many variations may occur. It is not necessary that all
organisations should pass through every stage of development. Nor
does every organisation exhibit the characteristics of exclusively one
stage.
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STRUCTURES FOR STRATEGIES:
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[1] Strategy.
A coherent set of action aimed at gaining a sustainable advantage
over competition, improving position vis-a-vis customers, or
allocating resources.
[ 2 ] Structure.
The organization chart and accompanying baggage that show who
reports to whom and how task are both divided up and integrated.
[ 3 ] Systems.
The process and flows that show how an organization gets things
done from day to day (information system, capital dudgeting
systems, manufacturing process, quality control systems, and
performance measurement systems all would be good examples.
[ 4 ] Style.
Tangible evidence of what management considers important by the
way it collectively spends time and attention and uses symbolic
behavior. It is not what management says in important; it is the
way management behaves.
[5 ] Staff.
The people in an organization. Here it is very useful to think not
about individual personalities but about corporate demographics.
[ 6 ] Shared values
The values that go beyond, but might well include, simple, goal
statements in determining corporate destiny. To fit the concept,
these values must be shared by most people in an organization.
[ 7 ] Skills.
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A derivate of the rest. skills are those capabilities that are
possessed by an organization as a whole as opposed to the people in
it.
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strategy chosen, the structure is left to evolve on its own. If
structure and strategy are not coordinated, the result will probably
be inefficiencies, misdirection, and fragmented efforts.
The need for structure becomes apparent as a business evolves. In
a small firms where one person manages current operations and
plans for the future, organizational structure is relatively simple.
Owner-managers have no organizational problem until their hurried
trips to the plant, late-night sessions assimilating financial
information for their CPA, sand pressed calls on potential
customers are inadequate to meet the demands of a business
increasing volume. As the magnitude of business activity increases,
the need to subdivide activities, assign responsibilities, and provide
for the integration and coordination of the new organizational parts
becomes imperative. Thus, how to structure the organization to
effectively execute the business strategy has become a major
concern.
What are the structural choices? Five basic types are currently used
by most business
1. Simple.
2. Functional.
3. Divisional.
4. Strategic business unit.
5. Matrix.
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Structure is not an end in itself but rather a means to an end. It is
a tool for managing the size and diversity of a business to enhance
the success of its strategy. This section identifies structural options
and examines the role of structure in strategy implementation.
[ 2 ] A divisional structure
It allows corporate management to delegate authority for the
strategic management of a distinct business entity. This can
expedite critical decision making within each division in response to
varied competitive environments, and it forces corporate
management to concentrate on corporate level strategic decisions.
The semiautonomous divisions are usually given profit
responsibility. The divisional structure thus seeks to facilitate
accurate assessment of profit and loss.
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[ 3 ] Strategic Business Units:
Some firms encounter difficulty in controlling their divisional
operations as the diversity, size, and number of these units
continues to increase. And corporate management may encounter
difficulty in evaluating and controlling its numerous, often multi-
industry divisions. Under these conditions, it may become
necessary to add another layer of management to improve strategy
implementation, promote synergy, and gain greater control over the
diverse business interests. This can be accomplished by grouping
various divisions (or parts of some divisions) in terms of common
strategic elements. These groups, (sector) SBUs. For example, three
separate divisions making food preparation appliances were merged
into a single SBU serving the housewares market.1 General Foods,
after originally defining SBUs along product lines (which serve
overlapping markets), restructured along menu lines.
In large companies, increased diversity leads to numerous product
and project efforts,
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all with major strategic significance. The results is a need for an
organizational form that provides and controls skills and resources
where and when they are most useful. The matrix organization,
pioneered by firms like defense contractors, construction companies
has increasingly been used to meet this need. The list of companies
now using some form of matrix organization includes Citicorp,
Digital Equipment, General Electric, Shell Oil, Dow Chemical
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are allocated internally on a strongest case for what is best overall
for the unit. basis.
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CONCLUSION
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.
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REFERENCE
1. www.wisegeek.com/what-is-a-divisional-organizational-structure.htm
2. https://www.accountingtools.com/articles/2017/5/13/divisional...
3. Strategic management book by A. NAG
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