Strategy Implementation

STRATEGY IMPLEMENTATION I. What is strategy? * Defined from atleast 2 perspectives: 1. From the perspective of what an organization intends to do * The broad program for defining and achieving an organization’s objectives and implementing its missions 2. Pattern of the organization’s responses to the environment over time * Every organization has a relationship with its environment that can be examined and described * This view includes managers who are reactive—who respond and adjust to the environment as the need arises II. Strategic Management * Charting the course of the entire enterprise * Steps: 1. Analysis of the internal and external environment of the firm 2. Definition of the firm’s mission 3. Formulation of strategies 4. Strategy implementation 5. Evaluation and control III. Strategy Implementation * The strategic management process does not end with formulation, there must be a translation into action * This translation is much easier if managers and employees of the firm understand the business, feel part of the company and through participation in strategy formulation are committed in making the company succeed * Without understanding and commitment, implementation efforts face major problems * Even the best conceived plans are of little value if they are not implemented effectively IV. Relationship of formulation and implementation / Differences * Formulation and implementation are 2 sides of the coin, very essential to strategic management * But successful strategy formulation does not guarantee the same with implementation. * Always more difficult to do something than to say you are going to do something * Although inextricably linked, the 2 can be contrasted in the following points: 1. Strategy formulation is positioning forces before the action, while implementation is managing forces during the action. 2. Formulation focuses on