implementation of a strategy n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Implementation of a strategy PowerPoint Presentation
Download Presentation
Implementation of a strategy

Loading in 2 Seconds...

play fullscreen
1 / 14

Implementation of a strategy - PowerPoint PPT Presentation


  • 281 Views
  • Uploaded on

Implementation of a strategy. The Nature of Strategy Implementation. Successful strategy formulation does not guarantee successful strategy implementation. Less than 10% of strategies formulated are successfully implemented!. Implementation may fail due to : e.g.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Implementation of a strategy' - holt


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

The Nature of Strategy Implementation

Successful strategy formulation does not guarantee successful strategy implementation.

Less than 10% of strategies formulated are successfully implemented!

  • Implementation may fail due to: e.g.
    • Not recognizing benefit of computers (I.T.) in managing information: use of data warehouse and data mining to improve intensive strategies
slide3

Formulation vs. Implementation

  • Formulation focuses on effectiveness
  • Implementation focuses on efficiency
  • Formulation requires good intuitive & analytical skills
  • Implementation requires special motivational & leadership skills
  • Formulation requires coordination among a few individuals
  • Implementation requires coordination among many individuals
management issues with implementation
Management Issues with implementation

Annual Objectives

Resources

Management

Issues

Organizational structure

Business process reengineering

Resistance to Change

slide5

Management Issues

Annual Objectives --

  • Basis for resource allocation
  • Mechanism for management (e.g. IT management) evaluation
  • Metric for gauging progress on long-term objectives
  • Help Establish priorities (organizational, division, & departmental)
slide6

Management Issues

Resource Allocation

The process that enables resources to be allocated according to priorities established by annual objectives. However it may cause conflict between the different functions:

Financial resources

Physical resources

Human resources

Technological resources

slide7

Management Issues

Matching Organisational Structure w/ Strategy

Changes in strategy=> Changes in structure

  • Structure dictates how objectives & policies will be established
  • How resources will be allocated;
  • E.g. is structurebased on location or based on the product…How do you think this may affect the above?
slide8

Management Issues

Reengineering the business process

In reengineering, a firm uses information technology to break down functional barriers and create a work system based on business processes…Reconfiguring or redesigning work, jobs, & processes to improve cost, quality… (alteration of Scott Morton’s value chain)

Think of an examples

slide9

Management Issues

Resistance to Change-- Single greatest threat to successful strategy implementation

Raises anxiety and fear concerning: economic loss, inconvenience or uncertainty…

  • Implemented via:
    • Force Change Strategy
    • Educative Change Strategy
    • Rational or Self-Interest Change Strategy
slide10

Key areas of Strategy Implementation

Strategy Implementation can have a low success rate if attention is not paid to key areas of the business e.g.:

  • Failing to segment markets appropriately
  • Paying too much for a new acquisition
  • Falling behind competition in R&D
  • Not recognizing benefit of computers in managing information
slide11

Marketing Segmentation

Market Segmentation: Subdividing of a market into distinct subsets of customers according to their needs and buying habits

  • Market segmentation variables include:
    • Product: quality, features, brandname
    • Place: Distribution channels, outlets, logistics
    • Price: level, payment terms
slide12

Finance/Accounting Issues

Essential for implementation

  • Acquiring needed capital
  • Developing projected financial statements
  • Evaluating worth of a business or product
slide13

Management Information Systems (MIS) Issues

Information is the basis for understanding the firm and is one of the most important factors differentiating successful from unsuccessful firms

  • MIS used to :
    • Data collection, retrieval, & storage
    • Converting data into information; creating charts
    • Keeping managers informed: Executive information system (E.I.S.) of KPI
    • Coordination of activities among divisions
    • Allow firm to reduce costs
questions
Questions
  • Explain, using suitable examples, 3 keys issues that managers need to consider in implementing strategies derived during strategy formulationprocesses. (12 marks)