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Notes of Strategy Implementation & Control
1. Distinction between Strategy Formulation and Strategy Implementation:
Strategy Formulation Strategy Implementation
Is a positioning forces
before the action
Is a managing forces during
the action
It focuses on effectiveness It focuses on efficiency
Is an intellectual process Is an operational process
Require good analytical skill Require motivation and
leadership skill
Require coordination
among few individual
Require coordination very
widely
2. Competitive advantage is the unique position of the firm from which it
attract more customers towards its products or services. Competitive
advantage means the firm has something which does not has with other
firms e.g. very low cost leadership among all firms in the industry. It is
very important position to maintain and sustain market position. It is the
ability to offers buyers something new and different which provide more
value of money to the customers. This position is also helpful for increase
the market share and demand of products or services.
3. Network structure is newer organizational design. In this structure
enterprise are eliminating in house business functions and many of
functions are outsourced to others. A corporation organized in this manner
is a virtual organization.
Notes of Strategy Implementation & Control
4. Core competence is the unique strength of an organization which may not
be shared by the others. Core competencies are very important to achieve
competitive advantage.
5. Value chain includes primary activities like inbound logistic, operations,
outbound logistics, marketing & sales and services and supporting activities
like procurement, human resource management, technology development
and infrastructure. It refer to separate activities which are important for
organizational strategies and are connected together both within and
between the organization. On one of the key aspect of value chain analysis
is the recognition that Organization are much more than random collection
of machines, money and people. These resources are of no value unless it
uses into regularly activities properly. It helps in maintaining long term
competitive position and providing high value for money in its products or
services. It originally introduced as an accounting analysis to know
separate steps in complex manufacturing process in order to identified
where cost improvement is made or value creation is possible.
6. Corporate Culture refer to a company’s values, beliefs, business principles,
traditions and way of operating and internal work environment. Culture
affects not only the way managers behave but also the decisions they
make about the organization. Every company has its own organizational
structure. Each has its business philosophy and principles and practices.
Therefore corporate culture need not be identical in all organizations.
Corporate culture builds around such principles as listening of the
customers, encourage employees to take part in decision making process
Notes of Strategy Implementation & Control
and also for take pride in their work. Corporate culture as strength and as
weakness are describe as follow:
As a Strength :- It can facilitate communication, decision making
and control. An organizational structure is more strong when it
conduct its business according to explicit set of rules and principles
which are communicated by the management to employees and
which are shared across the organization.
As a Weakness :- Culture can also be as weakness when many sub
cultures exist and very values are shared and traditions are rare. In
this employees do not have any type of commitment and loyalty. It
can stop the implementation of the strategy.
7. Strategic Business Units (SBU) is an unit of the company that has separate
mission and objectives. The planning is also done differently in it from
other organization. The most important characteristics are (i) is a single
business or collection of related businesses (ii) has its own set of
competitors (iii) has a manager who is responsible for planning and
performance. The SBU is given the authority to make its own decisions
within corporate guidelines. The advantages of SBU are as follow:
Establishing coordination between the divisions
Facilitate strategic management and control upon large structure of
the organization
Fixes the accountability at the level of distinct business units
Helps in allocating resources to areas with greatest growth
opportunities
Notes of Strategy Implementation & Control
The task of strategic review make more effective and objective
8. Strategic leadership is the ability to influencing others to voluntarily make
decisions that enhance long term success while maintaining short term
financial stability. It sets the firm’s direction by developing and
communicating a vision of future and inspire employees to move into that
direction. Managerial leadership is different from strategic leadership as it
is concerned with short term, day to day activities. There are two basic
approaches of leadership are as follow:
Transformational Leadership Style use enthusiasm to inspire
people. It may be appropriate in turbulent environment in the
industries at very start or end of their life cycle. It is very important
when there is need to inspire the company for major change. It
offers excitement and personal satisfaction. It also motivates to
employees for increasing their self confidence and also promote
innovation throughout the organization.
Transactional Leadership Style is to be related with improving
the current situation. Transactional leaders try to build the existing
culture and enhance current practices. They prefer formalized
approach of motivation with rewards and penalties for achievements
and non achievements. It may be appropriate in settled
environment.
9. A strategic manager has to play many roles in pushing for a good strategy
execution, which describe as follow:
Notes of Strategy Implementation & Control
Closely monitoring every process and working through obstacles
and issues.
Promoting a culture that motivating to members for executing good
strategy execution and perform at high level.
Keeping the organization for changing conditions so that it takes the
benefit of opportunities.
Leadership is must be ethical so that organization can conduct its
business as it is citizen of an India.
Taking corrective actions in timely manner for improving strategic
execution and overall performance of the enterprise.
10. Businesses are required to make modification in the existing strategy or
implement new strategy according to change in the environmental forces.
Strategic change is complex process and it involve a strategy which
focused on new products, markets, services and new ways doing business.
There are three stages of strategic change which are describe as below:
Unfreezing the situation :- This process make aware to
individuals and organization to necessity for change and prepare
them for change. The change should not come as surprise to the
members of the organization. So the management must unfreezing
the situation so that everyone is willing and ready for change. This
can be possible by making announcement, held meetings and
promoting ideas throughout the organization.
Changing to new situation :- Once the above process is
completed members are recognized the need for change and
Notes of Strategy Implementation & Control
prepared for accept the change. There are three methods for this (i)
Compliance (ii) Identification (iii) Internalization
Refreezing :- It occurs when new behaviour is become the normal
way of life, The new behaviour must replace the old one completely
for successful and permanent change to take place. Change of
process is not one time process but a continuous process due to
changing environment. The above three processes are cyclical one
and remain continuously in action.
11. Responsibilities of strategic leaders are as describe as follow:
Environment Scanning
Dealing with the diverse and competitive situations
Managing human capital
Managing the company’s operations
Maintaining high performance for long time
Willing to make candid decisions
Decision making responsibilities which can’t be delegated
Take feedback through face to face communication
Being spokesman for the organization
12. Operational control is focus on individual tasks where management control
is focus on all business functions. When compared with operational
management control is more inclusive as it include activities of whole
department or division or even for a whole organization. In the
organization many of the controls are in the nature of operational for which
a set of standards, plans and instructions are formulated. On the other
Notes of Strategy Implementation & Control
hand the basic objective of management control is to achieve the short
term or long term goals of the organization in an effective and efficient
manner.
13. Strategic control are basically focuses on two questions (i) the strategy is
being implemented as planned (ii) the result produced by the strategy are
those intended. There are four types of strategic controls which are as
follow:
Premise control :- A strategy is formed on the basis of certain
assumptions about the environment. It is a tool of continuous
monitoring of the environment to verify the validity of the
assumptions on the basis of which the strategy is formulated.
Strategic surveillance :- It is unfocussed. It involve the
monitoring the various sources of the information to uncover
unanticipated information.
Special alert control :- There are certain events which are
unexpected may force organization to reconsider their strategy.
Sudden change in government, natural calamities, merger or
acquisition by the competitors, industrial disasters etc may force to
enterprise to review of strategies.
Implementation control :- Managers implement the strategies by
converting major plans into actions. Implementation is directed
towards assessing the need for change in overall strategy in the
light of unexpected events.
Notes of Strategy Implementation & Control
14. Outbound logistics relates to collection, storage and distribution of the
products to customers. It include all the activities storage, order
processing, operational vehicles etc.
15. Change in strategy is require to make a change in structure as the
structure decide how the resources are allocated. Structure should follow
strategy. Without strategy companies find difficult to made effective
structure.
The above notes are very helpful to students at the last
minute rush at the time of exam. I hope that i am helping
you and i am able to remove your little bit of tension
through the above notes. Thank you very much. In case
of any query you can contact with me through my mail id
:- divyeshpithava@rediffmail.com.
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