In this lesson you learned about the three fundamental areas of executing strategy. You learned that reviewing Value chain activities, Marshalling resources and Managing change are the main components to effectively put Strategy Into Action.

1. Strategy and
Strategic
Management: An
overview
Global Business Consultants &
Partners Training Courses
Copyright 2020 Global Business Consultants

2. Chapter 3. Aligning Strategy
to the Company’s External
and Internal Situation
Lesson 3: Strategy into Action

3. “A winning strategy must fit the company’s
external and internal situation, build
sustainable competitive advantage, and
improve company performance and be
based on awareness of the lens through
which it is perceived.”
Unknown

4. Strategy
into action
 Structuring the organisation to support
strategy.
 Marshalling resources (E.g. people,
information, finance, technology).
 Managing change.

5. Strategy
into action
Structuring the organisation to support strategy.
 Structuring a company to support its strategy includes:
 Organizing value chain activities and business process,
 Establishing lines of authority and reporting relationships, and
 Deciding how much decision-making authority to delegate to lower-
level managers and frontline staff.
 The design of a company’s organisation structure is a critical
aspect of the strategy execution process.
 Organisation structure comprises the formal and informal
arrangements of tasks, responsibilities, and lines of authority and
communication by the company is administered.

6. Strategy
into action
Structuring the organisation to support strategy.
 Structuring a company’s value chain activities to support its
strategy is a critical component to effective strategy execution.
 Aside from the fact that an external company may be able to perform
certain value chain activities better or cheaper than a company can
perform them internally, outsourcing can also sometimes make a positive
contribution to strategy execution.
 Outsourcing selected value chain activities enables a company to
heighten its strategic focus and concentrate its full energy on
performing value chain activities that are at the core of its strategy.
 For example. E & J. Gallo Winery outsourced 95% of its grape production
letting farmers take on weather-related and other grape growing risks,
while it concentrated its full energy on wine production and sales.

7. Strategy
into action
Structuring the organisation to support strategy.
 Organisation structures can be can be classified into a limited number of
standard types. The type that is most suitable for a given company will
depend on the company’s size and complexity as well as its strategy.
 Simple structure. A simple structure is one in which a central executive (often the
owner-manager) handles all major decisions and overseas the operations of the
company with the help of a small staff.
 Functional structure. A functional structure is one that is organized along
functional lines, where a function represents a major component of a company’s
value chain, such as R&D, Engineering and design, manufacturing etc.
 Multidivisional structure. A multidivisional structure is a decentralized structure
consisting of a set of operating divisions organized along market, customer,
product, or geographical lines, along with a central corporate headquarters.
 Matrix structure. A matrix structure is a combination structure in which the
company is organized along two or more dimensions at once (e.g. business,
geographic area, value chain function) for the purpose of enhancing cross-unit
communication, collaboration, and coordination.

8. Strategy
into action
Marshalling resources (E.g. people, information,
finance, technology).
 High among the company-building priorities is the Strategy
into Action process is the need to build and strengthen
competitively valuable resources and capabilities.
 If the strategy being implemented is new, company owners
and managers may have to:
 acquire new resources,
 significantly broaden or deepen certain capabilities, or even
 add entirely new competencies in order to put the strategic
initiatives in place and execute them proficiently.

9. Strategy
into action
Marshalling resources (E.g. people, information,
finance, technology).
 There are three approaches to building and strengthening
capability.
 Developing capabilities internally. Capabilities can be developed
infernally but it is developed incrementally along an evolutionary path
as company search for solutions to their problems.
 Acquiring capabilities through Mergers and Acquisitions. Sometimes
a company can refresh and strengthen its competencies by acquiring
another company with attractive resources and capabilities.
 Accessing capabilities through Collaborative Partnerships. Another
method of acquiring capabilities from an external source is to access
them via collaborative partnerships with suppliers, competitors, or
other companies having the cutting-edge expertise.

10. Strategy
into action
Managing change.
 The way for a company to begin execution of its major strategy is by
selling company personnel on the need for new-style behaviors and
work practices.
 This means making a compelling case for why the new direction efforts are
in the company’s best interest and why company personnel should
wholeheartedly join the effort to doing things somewhat differently. This
can be done by:
 Explaining why and how certain behaviors and work practices in the
current culture pose obstacles to good strategy execution.
 Explaining how new behaviors and work practices will be more
advantageous and produce better results.
 Citing reasons why the current strategy has to be modified. This includes
explaining why the new strategic initiatives will bolster the company’s
competitiveness and performance.

11. “Most strategies are a
combination of intended and
emergent processes.”
Karen | GBC

12. Congratulations! You’ve completed lesson .
Recap: In this lesson you learned about the three
fundamental areas of executing strategy. You learned that
reviewing Value chain activities, Marshalling resources and
Managing change are the main components to effectively
put Strategy Into Action.
Awesome work!
Now click Complete and then Next for Chapter 4.