Implementing Strtegies

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IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES OUTLINE      The Nature of Strategy Implementation Marketing Issues Finance/Accounting Issues Research and Development (R&D) Issues Management Information Systems (MIS) Issues

OBJECTIVES After studying this paper, you should be able to do the following: 1. 2. 3. 4. 5. 6. Explain market segmentation and product positioning as strategy-implementation tools. Discuss procedures for determining the worth of a business. Explain why pro forma financial analysis is a central strategy-implementation tool. Explain how to evaluate the attractiveness of debt versus stock as a source of capital to implement strategies. Discuss the nature and role of research and development in strategy implementation. Explain how management information systems can determine the success of strategyimplementation efforts.

PAPER OVERVIEW Strategies have no chance of being implemented successfully when organizations do not market goods and services well, when firms cannot raise needed working capital, when firms produce technologically inferior products, or when firms have a weak information system. This Paper, therefore, examines marketing, finance/accounting, R&D, and MIS issues that are central to effective strategy implementation. Special topics include market segmentation, market positioning, evaluating the worth of a business, determining to what extent debt and/or stock should be used as a source of capital, developing pro forma financial statements, contracting R&D outside the firm, and creating an information support system. Manager and employee involvement and participation are essential for success in marketing, finance/accounting, R&D, and management information systems activities.

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EXTENDED PAPER OUTLINE I. THE NATURE OF STRATEGY IMPLEMENTATION A. Implementation Is a Challenge 1. Less than 10 percent of strategies formulated are successfully implemented. There are many reasons for this low success rate, including failing to segment markets appropriately, paying too much for a new acquisition, falling behind competitors in R&D, and not recognizing the benefit of computers in managing information. 2. Strategy implementation directly affects the lives of plant managers, division managers, department managers, sales managers, project managers, personnel managers, staff managers, supervisors, and all employees. Tip: Some consulting firms offer courses and training sessions to help firms implement their strategies effectively. An example is Strategy Implementation Inc. at {}. II. MARKETING ISSUES

VTN (Visit the Net): gives an excellent presentation on marketing issues related to strategic management. A. Marketing decisions may require policies: 1. 2. 3. 4. 5. 6. To use exclusive dealerships or multiple channels of distribution. To use heavy, light, or no TV advertising. To limit (or not) the share of business done with a single customer. To be a price leader or follower. To offer a complete or limited warranty. To reward salespeople based on straight salary, straight commission, or a combination salary/commission. 7. To advertise online or not. 8. To protect consumer privacy/designate web policies. a. A marketing issue of increasing concern to consumers today is the extent to which companies can track individuals’ movements on the Internet and are even be able to identify the individual by name and e-mail address. b. Recently completed research reveals that web advertising dollars spent by businesses will increase to 27 percent of total advertising expenditures by 2002, up from 17 percent in 1999. VTN (Visit the Net): provides the strategic planning software CheckMATE for twenty-three different industries. VTN (Visit the Net): gives the strategic plan for the Medical...
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