This document discusses key issues related to strategy implementation, including:
1) The differences between strategy formulation and implementation, with implementation requiring operational and leadership skills to coordinate many people.
2) Management issues central to successful implementation, such as establishing objectives, allocating resources, changing organizational structure, and developing incentives.
3) The importance of aligning organizational structure with strategy, and that changes in strategy may require changes to structure. Common structures discussed include functional, divisional, strategic business unit, and matrix structures.
Strategic Management Slides - Chapter 4 "the Internal Assessment"Rabia Rajput
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Corporate Strategy or Strategic Management
Concepts and Cases by Fred R. David,
Francis Marion University, Florence, South Carolina, &
Forest R. David,
Strategic Planning Consultant
Strategic Management Slides - Chapter 4 "the Internal Assessment"Rabia Rajput
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Corporate Strategy or Strategic Management
Concepts and Cases by Fred R. David,
Francis Marion University, Florence, South Carolina, &
Forest R. David,
Strategic Planning Consultant
Strategic Management Slides - Chapter 3 "the External Assessment"Rabia Rajput
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Chapter 7 implementing startegies : Management and OperationsInikeAprilia1
Chapter 7 implementing startegies : Management and Operations by Inike Aprilia L (1511011009) and silvia (1511011010) from economic and business faculty, University of Lampung
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1808 Kaplan.indd 621808 Kaplan.indd 62 12/5/07 5:31:55 PM12/5/07 5:31:55 PM
NOT LONG AFTER ITS SUCCESSFUL IPO, the Conner Corporation (not its real
name) began to lose its way. The company’s senior executives continued their prac-
tice of holding monthly one-day management meetings, but their focus drifted.
The meetings’ agenda called for a discussion of operational issues in the morn-
ing and strategic issues in the afternoon. But with the company under pressure
to meet quarterly targets, operational items had started to crowd strategy out
of the agenda. Inevitably, the review of actual monthly and forecast quarterly
fi nancial performance revealed revenues to be lower, and expenses to be higher,
than targeted. The worried managers spent hours discussing how to close the
gap through pricing initiatives, capacity downsizing, SG&A staff cuts, and sales
hbr.org | January 2008 | Harvard Business Review 63
Successful strategy execution has two basic rules: understand
the management cycle that links strategy and operations, and know
what tools to apply at each stage of the cycle.
by Robert S. Kaplan
and David P. Norton
the Management
System
1808 Kaplan.indd 631808 Kaplan.indd 63 12/5/07 5:32:05 PM12/5/07 5:32:05 PM
64 Harvard Business Review | January 2008 | hbr.org
LEADERSHIP AND STRATEGY | Mastering the Management System
campaigns. One executive noted, “We have no time for
strategy. If we miss our quarterly numbers, we might cease
to exist. For us, the long term is the short term.”
Like Conner, all too many companies – including some
well-established public corporations – have learned how
Gresham’s Law applies to their management meetings:
Discussions about bad operations inevitably drive out dis-
cussions about good strategy implementation. When com-
panies fall into this trap, they soon fi nd themselves limping
along, making or closely missing their numbers each quarter
but never examining how to modify their strategy to gener-
ate better growth opportunities or how to break the pat-
tern of short-term fi nancial shortfalls. Analysts, investors,
and board members start to question the imagination and
commitment of the companies’ management.
In our experience, however, breakdowns in a company’s
management system, not managers’ lack of ability or effort,
are what cause a company’s underperformance. By manage-
ment system, we’re referring to the integrated set of processes
and tools that a company uses to develop its strategy, translate
it into operational actions, and monitor and improve the effec-
tiveness of both. The failure to balance the tensions between
strategy and operations is pervasive: Various studies done in
the past 25 years indicate that 60% to 80% of companies fall
short of the success predicted from their new strategies.
By creating a closed-loop management system, compa-
nies can avoid such shortfalls. (S ...
E-BM The Internet and World Wide Web: E-BM InfrastructureKaleemSarwar2
The Internet and
World Wide Web:
E-BM Infrastructure, The Internet: Key Technology Concepts, Packet Switching, TCP/IP, Internet (IP) Addresses, Domain Names, DNS, and URLs, Client/Server Computing, Cloud Computing, Other Internet Protocols and Utility Programs, The Internet Today,
E-BM, Business Models and Concepts, 8 Key Elements of a Business Model, Categorizing E-commerce Business Models, B2C Business Models: Portal (Gateway), B2C Models: E- tailor,
After reading this chapter, you will be able to:
Define e-commerce and describe how it differs from e-business.
Identify and describe the unique features of e-commerce technology and discuss their business significance.
Describe the major types of e-commerce.
Discuss the origins and growth of e-commerce
Understand the vision and forces operating during the first five years of e-commerce, and assess its successes, surprises and failures.
Identify several factors that will define the next five years of e-commerce.
Describe the major themes underlying the study of e-commerce.
Identify the major academic disciplines contributing to e-commerce research.
Introduction
Types of Research
Research approaches
Key points of Research
Planning a Research Project
Research Question and its Generation
Hypothesis Generation
Sampling methods
Questionnaire development and design
Preparing a Research Proposal
Validity & Reliability of Research
Writing a Research Reports
Executive Summary, 1.Introduction, 2.Structure of Stock Exchange, 3.History and Developments, 4.Requirements for Listed Companies, 5.Reporting Requirements, 6.Buying and Selling Share Procedures, 7.Size of Stock Market, 8.Current Changes, 9.Comparison with ISE, 10.Conclusion, Reference
ABOUT TOKYO STOCK EXCHANGE:, History Of TSE, Domestic Market Capitalization (Sep,2005) (USD billions), Number of listed companies (Sep,2005)
, Total Value of Share Trading (2005) (in millions of USD), Total Value of Share Trading (2005) (in millions of JPN YEN)
, The state of personal financial asset holdings (2004)
, Major Activities, Regulatory Bodies, Daily Trade Statistics In Domestic Values, CURRENT CHANGES:,
Capital Asset Pricing Model, CAPM Assumptions, Borrowing and Lending Possibilities, Risk-Free Lending, Borrowing Possibilities, The New Efficient Set, Portfolio Choice, Market Portfolio, Characteristics of the Market Portfolio, Capital Market Line, The Separation Theorem, Security Market Line, CAPM’s Expected Return-Beta Relationship, How Accurate Are Beta Estimates?,
risk and return. Defining Return, Return Example, Defining Risk,Determining Expected Return , How to Determine the Expected Return and Standard Deviation, Determining Standard Deviation (Risk Measure), Portfolio Risk and Expected Return Example, Determining Portfolio Expected Return, Determining Portfolio Standard Deviation, Summary of the Portfolio Return and Risk Calculation, Total Risk = Systematic Risk + Unsystematic Risk,
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Focusing on what leading database practitioners say are the most important aspects to database development, Modern Database Management presents sound pedagogy, and topics that are critical for the practical success of database professionals. The 12th Edition further facilitates learning with illustrations that clarify important concepts and new media resources that make some of the more challenging material more engaging. Also included are general updates and expanded material in the areas undergoing rapid change due to improved managerial practices, database design tools and methodologies, and database technology.
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3. Strategy Formulation vs.
Implementation
Strategy Formulation
(SF)
Positioning forces
before the action
Focus on
effectiveness
Primarily intellectual
Requires good
intuitive and
analytical skills
Requires
coordination among
Strategy
Implementation (SI)
Managing forces
during the action
Focus on efficiency
Primarily operational
Requires special
motivation and
leadership skills
Requires
coordination among
many people
Ch
7 -3BY:MADDY.KALEEM
4. Shift in responsibility
Ch 7 -4
Nature of Strategy Implementation
SI problems can arise because of the shift in responsibility,
especially if SF decisions come as a surprise to middle- and
lower-level managers. Therefore, it is essential to involve
divisional and functional managers in SF.
Divisional or
Functional
Managers
Strategists
BY:MADDY.KALEEM
5. Management Issues Central to
Strategy Implementation
Establish annual
objectives
Devise policies
Allocate resources
Alter existing
organizational structure
Restructure & reengineer
Revise reward & incentive
plans
Minimize resistance to
change
Match managers to strategy
Develop a strategy-
supportive culture
Adapt production/operations
processes
Develop an effective human
resources function
Downsize & furlough as
needed
Link performance & pay to
strategies
Ch
7 -5BY:MADDY.KALEEM
6. Ch 7 -6
Purpose of Annual Objectives
Basis for resource allocation
Mechanism for management evaluation
Major instrument for monitoring progress
toward achieving long-term objectives
Establish priorities (organizational, divisional,
and departmental)
BY:MADDY.KALEEM
7. Ch 7 -7
Resource Allocation
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Four Types of Resources
BY:MADDY.KALEEM
8. Ch 7 -8
Managing Conflict
Conflict – a disagreement between two or more
parties. Interdependency of objectives and
competition for limited resources can cause
conflict.
Conflict not always “bad”
Lack of conflict may signal apathy
Can energize opposing groups to action
May help managers identify problems
BY:MADDY.KALEEM
9. MATCHING STRUCTURE WITH
STRATEGY
Changes in strategy often require changes in the way an
organization is structured because: (1) structure largely
dictates how objectives and policies will be established (e.g.,
objectives and policies established under a geographic
organizational structure are couched in geographic terms)
and (2) structure dictates how resources will be allocated
(e.g., if an organization’s structure is based on customer
groups, then resources will be allocated in that manner).
Structure should be designed to facilitate the strategic pursuit
of a firm and, therefore, follow strategy.
When a firm changes its strategy, the existing organizational
structure may become ineffective. For example, new
strategies to reduce payroll costs may require a change in
span of control.
Ch
7 -9BY:MADDY.KALEEM
11. Ch 7 -11
Basic Forms of Structure
Functional Structure
Divisional Structure
Strategic Business Unit Structure
(SBU)
Matrix Structure
BY:MADDY.KALEEM
12. Functional Structure
Groups tasks and activities by business
function (e.g., production, finance,
marketing, R&D, HR, IT, etc.).
Ch
7 -
12BY:MADDY.KALEEM
14. Divisional Structure
Can be organized in one of four
ways:
◦By geographic area
◦By product or service
◦By customer
◦By process
Ch
7 -
14BY:MADDY.KALEEM
16. Strategic Business Unit Structure
(SBU)
Groups similar divisions into
strategic business units and
delegates authority and
responsibility for each unit to
a senior executive who
reports directly to the chief
executive officer.
Ch
7 -
16BY:MADDY.KALEEM
17. Matrix Structure
The most complex of all structures
because it depends upon both
vertical and horizontal flows of
authority and communication.
Ch
7 -
17BY:MADDY.KALEEM
19. Ch 7 -19
Restructuring
Restructuring - reducing the size of an organization.
Also called:
Downsizing
Rightsizing
Delayering
These methods involve, respectively, reducing the
number of employees, number of divisions, and number
of hierarchical levels in a firm’s organizational structure.
Reducing the size of an organization is intended to
improve its efficiency and effectiveness.
BY:MADDY.KALEEM
20. Creating a Strategy-Supportive
Culture
1. Formal statements of
organizational philosophy
2. Design of physical spaces
3. Deliberate role modeling, teaching,
and coaching
4. Explicit reward and status system
5. Stories, legends, myths, and
parables
Ch
7 -
20BY:MADDY.KALEEM
21. Creating a Strategy-Supportive
Culture
6. What leaders pay attention to
7. Leader reactions to critical incidents and
crises
8. Organizational design and structure
9. Organizational systems and procedures
10. Criteria for recruitment, selection,
promotion, leveling off, retirement, and
“excommunication” of people
Ch
7 -
21BY:MADDY.KALEEM
22. Ch 7 -22
Production/Operations Decision
Examples
Plant size
Inventory / Inventory control
Quality control
Cost control
Technological innovation
BY:MADDY.KALEEM