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STRATEGY

IMPLEMAENTATION

INTRODUCTION

ISSUE IN STRATEGY IMPLEMENTATION


FORMULATION AND IMPLEMENTATION
OF STRATEGY

INTRODUCTION
Implementation of business strategy is
the terminal point in the whole scheme
of strategic planning process followed by
strategy evaluation and control.
In
a
simple
way,
Strategy
Implementation can be defined as a
process through which a chosen strategy
is put into action.
This definition is very simple but does
not specify what actions are required in
strategy implementation.

According to Steiner,
The implementation of policies
and strategies is concerned with the design
and management of systems to achieve the
best
integration
of
people,
structures,
processes,
and
resources,
in
reaching
organizational purpose.
According to Charles W.L.Hill and Gareth
R. J.,
The way in which a company
creates the organizational arrangements that
allow it to put its strategic plan into operation
most efficiently and to achieve its objectives.

Strategy Implementation is the other


half of strategy formulation. It is turn
a dream into reality Objectives into
results.

ISSUES IN STRATEGY
IMPLEMENTATION

1. Project implementation
2. Procedural implementation
3. Organizational growth
4. Organizational structural and
strategies
5. Entrepreneurial structure
6. Vertical/tall organizations
7. Horizontal/Flat organizations
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1. PROJECT
IMPLEMENTATION

A project is
investment is
predetermined.

time-bound

and

specific

According to the project management Institute


of the US as,
A project is one- shot time limited,
goal oriented, major undertaking, and requiring
the commitment of skills and resources.
Project reports are prepared for internal and
external purposes.
Internal Top Mgt. Or BOD
External Financial Institutions

PHASES OF PROJECT
1. Conception Phase Strategy
Formulation
2. Definition Phase Screening
3. Planning & Organizing Phase
4. Implementing Phase
5. Clean-up Phase

2. PROCEDURAL
IMPLEMENTATION
The strategists should study the
following procedural aspects before
implementing the strategy:
-Licensing procedures
-Foreign collaboration procedures
-FERA requirement
-MRTP requirements
-Capital issue requirements
-Import and export requirements
-Incentives and facilities benefits

3. ORGANIZATIONAL
GROWTH
Organizational structure is a means to
an end of the achieving organizational
mission and objectives.
There are two types of organizational
structure
-Formal organizational structure
-Informal organizational structure

4. ORGANIZATIONAL
STRUCTURE & STRATEGY
STRUCTURAL IMPLEMENTATION
Simple strategy Simple Structure
Growth strategy Flexible Structure
Complex
Strategy

Matrix
Structure
Stable Strategy Mechanistic
Structure

5. ENTREPRENEURIAL
STRUCTURE
When Small business,

(Entrepreneur Organizational structure)


Success Increased Demand
Develop business & increase the size of the
firm.
For business Growth, demand for new
employees
should generated.

Business Growth result in expansion of


organization structure both vertically
and Horizontally.

(Entrepreneurial organizational structure-with


growth)

STRATEGIC INDICATION
Advantages:
Timely decision-making
Sensitive to environmental demands
and operational flexibility
Disadvantages:
Owner-manager normally is not a
professional manager.
This structure cannot respond to the
increasing demand beyond a point.

Thus, this structure is mostly suitable


to the strategy catering to the needs
of a local market by being small.

6. VERTICAL / TALL
ORGANIZATION

(Vertical/ Tall organizational


structure)

It refer to increase in the length of the


organizations
hierarchy
chain
of
command.
The hierarchical chain of command
represents
the companys authorityaccountability
relationship
between
superiors and subordinates.
Authority is more centralized in tall
organization.

STRATEGIC IMPLICATION
Advantage:
Effective analysis of factors and efficient decision
making are possible.
Formulate effective policies, programmes and
control mechanism.
It provides promotional avenues.
All employees are centrally directed, so
coordination becomes possible.
Too many controls may reduce the cost of
operation.

Disadvantages:
Too many hierarchical levels results in
bureaucratic rather than commercial
characteristics to the business firm.
Tight operational controls delay the
decision making process.
It appropriate for the firms having growth
opportunities, and dogs.
Firms with cost minimization strategy and
firms in maturity stage can adopt this
organizations.

7. HORIZONTAL / FLAT
ORGANISATION

It refer to an increase in breadth of an


organizations structure.
No. of level are few.
The Span of control of is relatively

The increasing bio- professionalization


and wide acceptance for
empowerment allowed even the large
business firms to require the number
of hierarchical levels of their
organization.
Large sized firms also adopting this
organization by delayering.
In fact, this structure is well suited for
the small size business firms.

STRATEGIC IMPLICATION
Advantage:
Quick decision making
Low administrative cost
Freedom and autonomy to the managers to
operate

Appropriate for organizations with horizontal


and
vertical growth strategies , stars and cash
cows.
Thus, these structures are useful for
competitive
and dynamic business firms.

5. FORMULATION AND
IMPLEMENTATION OF
STRATEGY

The strategy formulation and the


relationship between strategy formulation
and strategic implementation should be
studies. This is because, the formulation
and
implementation
process
are
intertwined in real life. The two linkages'
exist between strategy formulation and
implementation are:
1.Forward linkage
2.Backward linkage

1.FORWARD LINKAGE:
Forward linkage deal with the impact of
strategy formulation on implementation.
With the formulation of new strategies,
many changes have to be affected
within the organization.
A whole lot of changes have to be
undertaken
to
operationalize
and
institutionalize
the
formulated
strategies.
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2. BACKWARD LINKAGE:

The backward linkage deal with the influence


of implementation on strategy formulation.
Just as implementation determined by the
implementation process.
Both are never ending processes.
However, the interdependence of
formulation
and implementation of strategy does not
mean
that managers are not to distinguish between
the two.

Difference
Strategy
formulation
1.Positioning forces
before the action.
2.Focuses on
effectiveness.
3.Primarily an
intellectual process.
4.Requires good intuitive
and analytical skills.
5.Requires coordination
among few individuals.

Strategy
Implementation
1.Managing forces during
the action.
2. Focuses on efficiency.
3.Primarily an operational
process.
4.Requires motivation and
leadership skills.
5.Requires coordination
among many individuals.

MCQ
1. _________ is not a phases of project.
(a) Conception Phase
(b) Implementing Phase
(c) Both (A) & (B)
(d) None of the above
2. Primarily, Strategy formulation is .
Process.
(a) Operational process
(b) simple process
(c)Intellectual process

3. ________deal with the impact of strategy


formulation
on implementation.
(a) Forward linkages
(b) Backward linkages
(c) Both of the above
(d) None of the above
4.Which type of organisation is appropriate for
the firms having dog condition?
(a) Horizontal organisation
(b) Vertical organisation
(c) Entrepreneurial structure
(d) None of the above

ANSWER KEY
1.
2
3.
4.

d
c
a
b

Please
clarify
your