Strategic Management complete course...

1. JahanUniversity
BachelorofBusinessAdministration
Departmentof BusinessAdministration
Subject: Strategic Management
Lecture# 10th Strategy Execution
Lecturer: Hijratullah Tahir
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2. Objectives of the lecture
After completion of this lecture students will be able to know:
1. Describe the transition from formulating to implementing strategies
2. Why annual objectives are essential for effective strategy implementation.
3. Six reasons why policies are essential for effective strategy implementation.
4. Role of resource allocation and managing conflict in strategy
implementation.
5. Discuss the need to match a firm’s structure with its strategy.
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3. Outline of the lecture
Topic 1 : Describe the transition from formulating to implementing strategies
Topic 2 : Why annual objectives are essential for effective strategy implementation.
Topic 3 : Why policies are essential for effective strategy implementation.
Topic 4 : Role of resource allocation and managing conflict in strategy implementation.
Topic 5 : Discuss the need to match a firm’s structure with its strategy.
Topic 6 : Identify, diagram, and discuss seven different types of organizational structure.
Topic 7 : Identify and discuss fifteen dos and don’ts in constructing organizational charts.
Topic 8 : Four strategic productions issues vital for successful strategy implementation.
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4. Transitioning from Formulation Implementation
• Successful strategy formulation does not guarantee successful strategy
implementation.
• Strategy implementation is difficult than strategy formulation
• linked, strategy implementation is fundamentally different from
strategy formulation.
• Implementing strategies requires such actions as altering sales
territories, adding new departments, closing facilities, hiring new, etc.
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5. Formulation Vs. Implementation
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Formulation Implementation
Position forces before the action Manage forces during the action
Focus is on effectiveness Focus is on efficiency
Primarily an intellectual process Primarily an operational process
Requires good intuitive and analytical skills Requires special motivation and leadership
skills
Requires coordination among a few
individuals
Requires coordination among many
individuals
A science with tools and techniques An art to energize people

6. The Need for Clear Annual Objectives
Annual objectives are essential for strategy implementation for reasons;
1. They represent the basis for allocating resources.
2. They are a primary mechanism for evaluating managers.
3. They enable effective monitoring of progress toward achieving long-
term objectives.
4. They establish organizational, divisional, and departmental priorities.
5. They are essential for keeping a strategic plan on track.
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7. The Need for Clear Policies
1. Policies set boundaries, constraints, and limits on the kinds of administration.
2. Policies let both employees and managers know what is expected of them,
3. Policies provide a basis for management control and allow coordination across
organizational units.
4. Policies reduce the amount of time managers spend making decisions.
5. Policies promote delegation of decision making to appropriate managerial
levels where various problems usually arise.
6. Policies clarify what can and cannot be done.
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8. Allocation of Resources
Types of Resources;
1. financial resources,
2. Physical resources,
3. Human resources, and
4. Technological resources.
Distributing an organization’s “assets” across products, regions, and
segments according to priorities established by annual objectives.
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9. Managing Conflict
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• Differences of opinion, turf protection, and competition for limited
resources can inevitably lead to conflict.
• Disagreement between two or more parties on one or more issues.
• Establishing annual objectives can lead to conflict because individuals
have different expectations, perceptions, schedules, pressures,
obligations, and personalities.
• Avoidance, Diffusion and Confrontation

10. Match Structure with Strategy
Strategy often require changes in the way an organization is structured, for
two major reasons.
1. Structure largely dictates how objectives and policies will be established.
2. Structure dictates how resources will be allocated. If an organization’s
structure is based on customer groups, then resources will be allocated
in that manner.
Strategic Business Unit
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11. Types of Organizational Structure
There are seven basic types of organizational structure:
• Functional,
• Divisional by geographic area, Divisional by product, Divisional by
customer, Divisional by process,
• Strategic business unit (SBU), and Matrix.
• Companies, strive to be better organized/structured than rivals
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12. Strategic Production/ operations Issues
• Production/operations capabilities, limitations, and policies have
contribution in objectives achievement.
• Thus, a major part of the strategy-implementation process takes place
at the production site.
• SP Decisions; Plant size, plant location, product design, choice of
equipment, kind of tooling, size of inventory, inventory control, quality
control, cost control, use of standards, job specialization, etc
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13. Strategic Production/ operations Issues
Four production/operations issues;
1. Restructuring/reengineering,
2. Managing resistance to change,
3. Deciding where/how to produce goods, and
4. Managing an ESOP
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14. Strategic Human Resource Issues
• Any organization is only as good as its people! Thus, human resource
issues can make or break successful strategy implementation.
• HR Issues are; Linking performance and pay to strategy, Balancing work
life with home life, Developing a diverse work force, Using caution in
hiring a rival’s employees, creating a strategy-supportive culture, Using
caution in monitoring employees’ social media, and developing a
corporate wellness program
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15. Conclusion
• Successful strategy formulation does not at all guarantee successful strategy
implementation.
• In a single word, strategy implementation means change.
• It is widely agreed that the real work begins after strategies are formulated.
• Successful strategy implementation requires the support of, as well as discipline
and hard work, from motivated managers and employees.
• Formulating the right strategies is not enough because managers and employees
must be motivated to implement those strategies.
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16. References
1. Strategic Management Concepts and Cases Sixteen Edition by
Fred R. David.
2. Fundamental of Business Management Process by Marlon
Dumas and Jan Mandelling.
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