2. Management
Stage When Most
Function Important
Planning Strategy Formulation
Organizing Strategy Implementation
Motivating Strategy Implementation
Staffing Strategy Implementation
Controlling Strategy Evaluation
3. “ACTION speak louder than
WORDS”
• Most companies have strategies, but
according to recent studies, between
70% and 90% of organizations
that have formulated strategies fail to
execute them.
• A Fortune Magazine study has shown
that 7 out of 10 CEOs, who fail, do so
not because of bad strategy,
but because of bad execution.
4. • In another study of Times 1000
companies, 80% of directors said they
had the right strategies but only
14% thought they were implementing
them well.
5. Allocating Resources
In strategic planning, a resource-
allocation decision is a plan for using
available resources, especially
human resources especially in the
near term, to achieve goals for the
future. It is the process of allocating
resources among the
various projects or business units.
6. Four types of resources
Financial resources
includes all of an
organization’s, Liquid
assets, liabilities and equity.
7. Physical
Includes all of an organization’s
tangible assets. This include plants,
equipment, land, inventory, raw
materials, facilities, and machinery.
Human
Includes all of an organization’s
people, such as top managers,
divisional managers, department
managers, engineers, etc.
8. Technological
Includes all the knowledge, skill s,
methods, and tools that enable a firm
to carry on its chosen activities.
9. 5 major factors that commonly
prohibit effective resource allocation
1. An overprotection of resources
2. Too great emphasis on short-run
financial criteria
3. Company politics
4. Vague strategy targets
5. Reluctance to take risks.
10. Other reasons why resources are
commonly not deployed
• Top managers only rarely possess
enough knowledge about diversified
operations to make specific resource
allocation.
• Lower- and middle level managers
rarely possess enough knowledge
about the ramifications of new
strategies to make appropriate
resource requests.
11. Two actions that can enhance
resource allocation process
• First, formal resource requests should
be prepared by middle and lower level
managers.
• Second, as new strategies are
formulated, top managers should
develop strategy programs that show
what, when, and where new
resources are needed to achieve the
desired results.
12. A Framework for Allocating
Resources
• Develop an inventory of the total
resources available to the firm.
• Develop an inventory of each
division’s resources and each
department's resources.
• Develop division and departmental
resource requests.
• Allocate resources appropriately to
each division and department.
