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Part 4
Implementing strategies:
Management and Operational Issues
Annual Objectives a decentralized
activity that directly involves all
managers in an organization.
Essential for strategy implementation
because
1) represent the basis for allocating
resources
2) primary mechanism for evaluating
managers
Implementing strategies:
Management and Operational Issues
3)major instrument for monitoring
progress toward achieving long-term
objectives
4) establish organizational, divisional,
and department priorities
Need to ensure that annual
objectives are well conceived,
consistent with long-term objectives,
and supportive of strategies to be
implemented. ( ****)
Implementing strategies:
Management and Operational Issues
Policies are needed to make a strategy
work
Resource Allocation Central management
activity that allows for strategy execution
Managing Conflict interdependency of
objectives and competition and limited
resources
Matching Structure with Strategy
Functional/Divisional/SBU/ Matrix structure
Restructuring & Reengineering
Implementing strategies:
Management and Operational Issues
Strategy Evaluation
Strategy evaluation is vital to an organizations
well-being; timely evaluations can alert
management to problems or potential problems
before a situation becomes critical.
Three basic activities:
1) examining the underlying bases of a firms
strategy
2) comparing expected results with actual
results
3) taking corrective actions to ensure that
performance conforms to plan
Measuring Organizational
Performance
Compare actual results with
expected results
Some financial ratios that are useful
as criteria for strategy evaluation:
ROI /ROE/Profit margin
Market Share / Sales growth/ assets
growth.
Note: most quantitative criteria are
geared to annual objectives rather
than long-term objectives
Reference
F.R. David, Strategic Management
concepts and cases, 11th Edition,
Pearson International edition.