SlideShare a Scribd company logo
Strategy and
Strategic
Management: An
overview
Global Business Consultants &
Partners Training Courses
Copyright 2020 Global Business Consultants
Chapter 3. Aligning Strategy
to the Company’s External
and Internal Situation
Lesson 3: Strategy into Action
“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
Strategy
into action
 Structuring the organisation to support
strategy.
 Marshalling resources (E.g. people,
information, finance, technology).
 Managing change.
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.
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.
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.
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.
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.
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.
“Most strategies are a
combination of intended and
emergent processes.”
Karen | GBC
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.

More Related Content

What's hot

STM all material
STM all material STM all material
STM all material
karventhanps
 
Strategicmanagementfullnotes 110824114832-phpapp01
Strategicmanagementfullnotes 110824114832-phpapp01Strategicmanagementfullnotes 110824114832-phpapp01
Strategicmanagementfullnotes 110824114832-phpapp01
StudsPlanet.com
 
Strategy formulation
Strategy formulationStrategy formulation
Strategy formulation
charu nagpal
 
Strategic management - short notes
Strategic management - short notesStrategic management - short notes
Strategic management - short notes
Ramalingam Chandrasekharan
 
strategy implementation
strategy implementationstrategy implementation
strategy implementation
Arun Kumar
 
Strategic management module 1
Strategic management module 1Strategic management module 1
Strategic management module 1
Bibhudatta SinghSamant
 
Strategic management
Strategic management Strategic management
Strategic management
Genevieve Cavaiani
 
Internal Analysys Of Strategic Management
Internal Analysys Of Strategic ManagementInternal Analysys Of Strategic Management
Internal Analysys Of Strategic Management
guestd507e7
 
Strategic management simple and best
Strategic management simple and bestStrategic management simple and best
Strategic management simple and best
StudsPlanet.com
 
Isr dis45001 guide - occupational health and safety
Isr dis45001 guide - occupational health and safetyIsr dis45001 guide - occupational health and safety
Isr dis45001 guide - occupational health and safety
indseach
 
Establishing organizational direction
Establishing organizational directionEstablishing organizational direction
Establishing organizational direction
Vaishnav Kumar
 
Strategic formulation in Strategic management
Strategic formulation in Strategic managementStrategic formulation in Strategic management
Strategic formulation in Strategic management
Yamini Kahaliya
 
Ch09 Strategy and Strategic Management
Ch09 Strategy and Strategic Management Ch09 Strategy and Strategic Management
Ch09 Strategy and Strategic Management
Beta-Research.org
 
L6 m2 lo1_transcript
L6 m2 lo1_transcriptL6 m2 lo1_transcript
L6 m2 lo1_transcript
Bella Akora
 
Strategic mgt process
Strategic mgt processStrategic mgt process
Strategic mgt process
M Riaz Khan
 
The strategic management process(an overview)
The strategic management process(an overview)The strategic management process(an overview)
The strategic management process(an overview)
jawalala
 
Strategic management model process
Strategic management model processStrategic management model process
Strategic management model process
Mary Gilssie Joy Ecaldre
 
Unit 1 strategic management 2
Unit 1 strategic management 2Unit 1 strategic management 2
Unit 1 strategic management 2
Vatsana Technologies Pte Ltd
 
Strategic managment
Strategic managmentStrategic managment
Strategic managment
Mohamed Hassan
 
Strategic management
Strategic  managementStrategic  management
Strategic management
Saxbee Consultants
 

What's hot (20)

STM all material
STM all material STM all material
STM all material
 
Strategicmanagementfullnotes 110824114832-phpapp01
Strategicmanagementfullnotes 110824114832-phpapp01Strategicmanagementfullnotes 110824114832-phpapp01
Strategicmanagementfullnotes 110824114832-phpapp01
 
Strategy formulation
Strategy formulationStrategy formulation
Strategy formulation
 
Strategic management - short notes
Strategic management - short notesStrategic management - short notes
Strategic management - short notes
 
strategy implementation
strategy implementationstrategy implementation
strategy implementation
 
Strategic management module 1
Strategic management module 1Strategic management module 1
Strategic management module 1
 
Strategic management
Strategic management Strategic management
Strategic management
 
Internal Analysys Of Strategic Management
Internal Analysys Of Strategic ManagementInternal Analysys Of Strategic Management
Internal Analysys Of Strategic Management
 
Strategic management simple and best
Strategic management simple and bestStrategic management simple and best
Strategic management simple and best
 
Isr dis45001 guide - occupational health and safety
Isr dis45001 guide - occupational health and safetyIsr dis45001 guide - occupational health and safety
Isr dis45001 guide - occupational health and safety
 
Establishing organizational direction
Establishing organizational directionEstablishing organizational direction
Establishing organizational direction
 
Strategic formulation in Strategic management
Strategic formulation in Strategic managementStrategic formulation in Strategic management
Strategic formulation in Strategic management
 
Ch09 Strategy and Strategic Management
Ch09 Strategy and Strategic Management Ch09 Strategy and Strategic Management
Ch09 Strategy and Strategic Management
 
L6 m2 lo1_transcript
L6 m2 lo1_transcriptL6 m2 lo1_transcript
L6 m2 lo1_transcript
 
Strategic mgt process
Strategic mgt processStrategic mgt process
Strategic mgt process
 
The strategic management process(an overview)
The strategic management process(an overview)The strategic management process(an overview)
The strategic management process(an overview)
 
Strategic management model process
Strategic management model processStrategic management model process
Strategic management model process
 
Unit 1 strategic management 2
Unit 1 strategic management 2Unit 1 strategic management 2
Unit 1 strategic management 2
 
Strategic managment
Strategic managmentStrategic managment
Strategic managment
 
Strategic management
Strategic  managementStrategic  management
Strategic management
 

Similar to Lesson 3 strategy into action

Sm module 1
Sm module 1Sm module 1
Sm module 1
ravalhimani
 
Principle of management
Principle of management Principle of management
Principle of management
FaisalAbdullahFarhan
 
ppt_sm-1.pptx
ppt_sm-1.pptxppt_sm-1.pptx
ppt_sm-1.pptx
DipakkumarYadav2
 
Strategic management & business policy
Strategic management & business policyStrategic management & business policy
Strategic management & business policy
satya pal
 
Lesson 2 the strategy making hierarchy
Lesson 2 the strategy making hierarchyLesson 2 the strategy making hierarchy
Lesson 2 the strategy making hierarchy
Samuel Lee Mohan
 
Design organizations
Design organizationsDesign organizations
Design organizations
Broto Mudjianto
 
Strategic Management-Corporate Level Strategies.pptx
Strategic Management-Corporate Level Strategies.pptxStrategic Management-Corporate Level Strategies.pptx
Strategic Management-Corporate Level Strategies.pptx
LearnX365
 
Strategic-Management-Notes-for Strategic management practice
Strategic-Management-Notes-for Strategic management practiceStrategic-Management-Notes-for Strategic management practice
Strategic-Management-Notes-for Strategic management practice
BakhtAzam1
 
Strategy Formulation and Implementation
Strategy Formulation and ImplementationStrategy Formulation and Implementation
Strategy Formulation and Implementation
Gregar Donaven Valdehueza
 
MBA MCO101 Unit 5 Lecture 6 200806xx
MBA MCO101 Unit 5 Lecture 6 200806xxMBA MCO101 Unit 5 Lecture 6 200806xx
MBA MCO101 Unit 5 Lecture 6 200806xx
Derek Nicoll
 
STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Nkesi Kevin
 
An overview of strategic management.ppsx11
An overview of strategic management.ppsx11An overview of strategic management.ppsx11
An overview of strategic management.ppsx11
richamandla
 
STRATEGIC MANAGEMENT.pdf
STRATEGIC MANAGEMENT.pdfSTRATEGIC MANAGEMENT.pdf
STRATEGIC MANAGEMENT.pdf
Myfriend17
 
24398947 strategic-management-final-notes
24398947 strategic-management-final-notes24398947 strategic-management-final-notes
24398947 strategic-management-final-notes
Santosh Pathak
 
Strategic Planning by Ms. Negradas, Nelyn
Strategic Planning by Ms. Negradas, NelynStrategic Planning by Ms. Negradas, Nelyn
Strategic Planning by Ms. Negradas, Nelyn
1989RMSanchez
 
ppt_sm.pptx
ppt_sm.pptxppt_sm.pptx
ppt_sm.pptx
jalajaAnilkumar
 
Strat mgmt
Strat mgmtStrat mgmt
Strat mgmt
Ekroop Kaur
 
Scaling up your business to next level
Scaling up your business to next levelScaling up your business to next level
Scaling up your business to next level
Browne & Mohan
 
strategy management copy.pdf
strategy management copy.pdfstrategy management copy.pdf
strategy management copy.pdf
pacodep892
 
Levels of Strategy
Levels of StrategyLevels of Strategy
Levels of Strategy
Ronit Kharade
 

Similar to Lesson 3 strategy into action (20)

Sm module 1
Sm module 1Sm module 1
Sm module 1
 
Principle of management
Principle of management Principle of management
Principle of management
 
ppt_sm-1.pptx
ppt_sm-1.pptxppt_sm-1.pptx
ppt_sm-1.pptx
 
Strategic management & business policy
Strategic management & business policyStrategic management & business policy
Strategic management & business policy
 
Lesson 2 the strategy making hierarchy
Lesson 2 the strategy making hierarchyLesson 2 the strategy making hierarchy
Lesson 2 the strategy making hierarchy
 
Design organizations
Design organizationsDesign organizations
Design organizations
 
Strategic Management-Corporate Level Strategies.pptx
Strategic Management-Corporate Level Strategies.pptxStrategic Management-Corporate Level Strategies.pptx
Strategic Management-Corporate Level Strategies.pptx
 
Strategic-Management-Notes-for Strategic management practice
Strategic-Management-Notes-for Strategic management practiceStrategic-Management-Notes-for Strategic management practice
Strategic-Management-Notes-for Strategic management practice
 
Strategy Formulation and Implementation
Strategy Formulation and ImplementationStrategy Formulation and Implementation
Strategy Formulation and Implementation
 
MBA MCO101 Unit 5 Lecture 6 200806xx
MBA MCO101 Unit 5 Lecture 6 200806xxMBA MCO101 Unit 5 Lecture 6 200806xx
MBA MCO101 Unit 5 Lecture 6 200806xx
 
STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENTSTRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
 
An overview of strategic management.ppsx11
An overview of strategic management.ppsx11An overview of strategic management.ppsx11
An overview of strategic management.ppsx11
 
STRATEGIC MANAGEMENT.pdf
STRATEGIC MANAGEMENT.pdfSTRATEGIC MANAGEMENT.pdf
STRATEGIC MANAGEMENT.pdf
 
24398947 strategic-management-final-notes
24398947 strategic-management-final-notes24398947 strategic-management-final-notes
24398947 strategic-management-final-notes
 
Strategic Planning by Ms. Negradas, Nelyn
Strategic Planning by Ms. Negradas, NelynStrategic Planning by Ms. Negradas, Nelyn
Strategic Planning by Ms. Negradas, Nelyn
 
ppt_sm.pptx
ppt_sm.pptxppt_sm.pptx
ppt_sm.pptx
 
Strat mgmt
Strat mgmtStrat mgmt
Strat mgmt
 
Scaling up your business to next level
Scaling up your business to next levelScaling up your business to next level
Scaling up your business to next level
 
strategy management copy.pdf
strategy management copy.pdfstrategy management copy.pdf
strategy management copy.pdf
 
Levels of Strategy
Levels of StrategyLevels of Strategy
Levels of Strategy
 

More from Samuel Lee Mohan

Lesson 1 monitoring new external developments, evaluating progress and making...
Lesson 1 monitoring new external developments, evaluating progress and making...Lesson 1 monitoring new external developments, evaluating progress and making...
Lesson 1 monitoring new external developments, evaluating progress and making...
Samuel Lee Mohan
 
Lesson 1 managing the implementation
Lesson 1 managing the implementationLesson 1 managing the implementation
Lesson 1 managing the implementation
Samuel Lee Mohan
 
Lesson 3 strategic vision plus objectives plus strategy equals strategic plan
Lesson 3 strategic vision plus objectives plus strategy equals strategic planLesson 3 strategic vision plus objectives plus strategy equals strategic plan
Lesson 3 strategic vision plus objectives plus strategy equals strategic plan
Samuel Lee Mohan
 
Lesson 1 strategy making involves business owners and managers at all levels
Lesson 1 strategy making involves business owners and managers at all levelsLesson 1 strategy making involves business owners and managers at all levels
Lesson 1 strategy making involves business owners and managers at all levels
Samuel Lee Mohan
 
Lesson 2 a balanced approach to setting objectives
Lesson 2 a balanced approach to setting objectivesLesson 2 a balanced approach to setting objectives
Lesson 2 a balanced approach to setting objectives
Samuel Lee Mohan
 
Lesson 1 the kinds of objectives to set
Lesson 1 the kinds of objectives to setLesson 1 the kinds of objectives to set
Lesson 1 the kinds of objectives to set
Samuel Lee Mohan
 
Lesson 3 linking the vision and mission with company values
Lesson 3 linking the vision and mission with company valuesLesson 3 linking the vision and mission with company values
Lesson 3 linking the vision and mission with company values
Samuel Lee Mohan
 
Lesson 2 developing a mission statement
Lesson 2 developing a mission statementLesson 2 developing a mission statement
Lesson 2 developing a mission statement
Samuel Lee Mohan
 
Lesson 1 developing and communicating a strategic vision
Lesson 1 developing and communicating a strategic visionLesson 1 developing and communicating a strategic vision
Lesson 1 developing and communicating a strategic vision
Samuel Lee Mohan
 
Lesson 4 the ethics test
Lesson 4 the ethics testLesson 4 the ethics test
Lesson 4 the ethics test
Samuel Lee Mohan
 
Lesson 3 challenges of strategic management
Lesson 3 challenges of strategic managementLesson 3 challenges of strategic management
Lesson 3 challenges of strategic management
Samuel Lee Mohan
 
Lesson 2 different contexts for strategy
Lesson 2 different contexts for strategyLesson 2 different contexts for strategy
Lesson 2 different contexts for strategy
Samuel Lee Mohan
 
Lesson 1 processes of strategy development
Lesson 1 processes of strategy developmentLesson 1 processes of strategy development
Lesson 1 processes of strategy development
Samuel Lee Mohan
 
Lesson 2 strategic choices
Lesson 2 strategic choicesLesson 2 strategic choices
Lesson 2 strategic choices
Samuel Lee Mohan
 
Lesson 1 strategic position
Lesson 1 strategic positionLesson 1 strategic position
Lesson 1 strategic position
Samuel Lee Mohan
 
Lesson 3 elements of strategic management
Lesson 3 elements of strategic managementLesson 3 elements of strategic management
Lesson 3 elements of strategic management
Samuel Lee Mohan
 
Lesson 2 strategic management and operational management
Lesson 2 strategic management and operational managementLesson 2 strategic management and operational management
Lesson 2 strategic management and operational management
Samuel Lee Mohan
 
Lesson 1 the 4 levels of strategy
Lesson 1 the 4 levels of strategyLesson 1 the 4 levels of strategy
Lesson 1 the 4 levels of strategy
Samuel Lee Mohan
 
Lesson 2 What is strategy
Lesson 2 What is strategy Lesson 2 What is strategy
Lesson 2 What is strategy
Samuel Lee Mohan
 
Lesson 1 Elements and Vocabulary of Strategy
Lesson 1 Elements and Vocabulary of StrategyLesson 1 Elements and Vocabulary of Strategy
Lesson 1 Elements and Vocabulary of Strategy
Samuel Lee Mohan
 

More from Samuel Lee Mohan (20)

Lesson 1 monitoring new external developments, evaluating progress and making...
Lesson 1 monitoring new external developments, evaluating progress and making...Lesson 1 monitoring new external developments, evaluating progress and making...
Lesson 1 monitoring new external developments, evaluating progress and making...
 
Lesson 1 managing the implementation
Lesson 1 managing the implementationLesson 1 managing the implementation
Lesson 1 managing the implementation
 
Lesson 3 strategic vision plus objectives plus strategy equals strategic plan
Lesson 3 strategic vision plus objectives plus strategy equals strategic planLesson 3 strategic vision plus objectives plus strategy equals strategic plan
Lesson 3 strategic vision plus objectives plus strategy equals strategic plan
 
Lesson 1 strategy making involves business owners and managers at all levels
Lesson 1 strategy making involves business owners and managers at all levelsLesson 1 strategy making involves business owners and managers at all levels
Lesson 1 strategy making involves business owners and managers at all levels
 
Lesson 2 a balanced approach to setting objectives
Lesson 2 a balanced approach to setting objectivesLesson 2 a balanced approach to setting objectives
Lesson 2 a balanced approach to setting objectives
 
Lesson 1 the kinds of objectives to set
Lesson 1 the kinds of objectives to setLesson 1 the kinds of objectives to set
Lesson 1 the kinds of objectives to set
 
Lesson 3 linking the vision and mission with company values
Lesson 3 linking the vision and mission with company valuesLesson 3 linking the vision and mission with company values
Lesson 3 linking the vision and mission with company values
 
Lesson 2 developing a mission statement
Lesson 2 developing a mission statementLesson 2 developing a mission statement
Lesson 2 developing a mission statement
 
Lesson 1 developing and communicating a strategic vision
Lesson 1 developing and communicating a strategic visionLesson 1 developing and communicating a strategic vision
Lesson 1 developing and communicating a strategic vision
 
Lesson 4 the ethics test
Lesson 4 the ethics testLesson 4 the ethics test
Lesson 4 the ethics test
 
Lesson 3 challenges of strategic management
Lesson 3 challenges of strategic managementLesson 3 challenges of strategic management
Lesson 3 challenges of strategic management
 
Lesson 2 different contexts for strategy
Lesson 2 different contexts for strategyLesson 2 different contexts for strategy
Lesson 2 different contexts for strategy
 
Lesson 1 processes of strategy development
Lesson 1 processes of strategy developmentLesson 1 processes of strategy development
Lesson 1 processes of strategy development
 
Lesson 2 strategic choices
Lesson 2 strategic choicesLesson 2 strategic choices
Lesson 2 strategic choices
 
Lesson 1 strategic position
Lesson 1 strategic positionLesson 1 strategic position
Lesson 1 strategic position
 
Lesson 3 elements of strategic management
Lesson 3 elements of strategic managementLesson 3 elements of strategic management
Lesson 3 elements of strategic management
 
Lesson 2 strategic management and operational management
Lesson 2 strategic management and operational managementLesson 2 strategic management and operational management
Lesson 2 strategic management and operational management
 
Lesson 1 the 4 levels of strategy
Lesson 1 the 4 levels of strategyLesson 1 the 4 levels of strategy
Lesson 1 the 4 levels of strategy
 
Lesson 2 What is strategy
Lesson 2 What is strategy Lesson 2 What is strategy
Lesson 2 What is strategy
 
Lesson 1 Elements and Vocabulary of Strategy
Lesson 1 Elements and Vocabulary of StrategyLesson 1 Elements and Vocabulary of Strategy
Lesson 1 Elements and Vocabulary of Strategy
 

Lesson 3 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.