Issues in Implementation. Strategy Implementation and Strategy Formulation are directly related. IMPLEMENTATION ISSUES. Implementation involves adjusting or aligning various internal mechanisms and processes so that they facilitate the execution of a planned strategy.
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Strategy Implementation and Strategy Formulation are directly related.
Basic Elements Involved in Implementation
1. Organisation structure follows the growth strategies of the firm.
2. USA firms had followed a stage or stepwise process of development of strategies and structures.
3. Organisations do not change their structures until provoked by inefficiencies to do so.
4. Added later by Drucker and Miles and Snow:"structure constrains strategy".
Organisations may be divisionalised on different bases, amongst
which are included product part, geography and processes.
Lucas Industries (Joseph Lucas Ltd) 1982
A conventional pyramid with a management services department ladder
Outline organisation chart for a decentralised geographically diverse company
Outline organisational chart for a heavily centralised geographically diverse company
A Matrix organisation structure
Two cells (or autonomous work groups) alongside a conventional pyramid in computer department
Low price strategy
It is invariably easier to think up
clever strategies than it is to make
them work under company, competitive and customer constraints
Business Strength/Competitive Position
Strong Average Weak
Source :Wheelen and Hunger
Implementation of Strategy and the Nature of the Strategy
Re-build / Ruin
Targets met and
can allow Management
time to rebuild, but may
Implementation of the Strategy
Every thing has gone
Nature of the Strategy
The following are examples of poor implementation:
Just Do It
When a strong vision, culture, strategic intent and functional level concentration are combined, what emerges is that the business has soundness at the top (policies) and at the bottom (functions), rather than flashiness in the middle (programmes).