lesson 7 & 8 strategic management

Successful strategy implementation

This depends on cooperation among all functional and divisional managers in an organization.

Product positioning

This entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry.

Debt financing

This involves borrowing a fixed sum from a lender, which is then paid back with interest.

Reengineering

This involves re configuring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed but does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs

Resource Allocation

This is a central management activity that allows for strategy execution

Resistance to change

This is a threat to successful strategy implementation. (Sabotage production machines, absenteeism, filing grievances, etc)

Strategy implementation

This is managing forces during the action and this focuses on efficiency.

Strategy Formulation

This is positioning forces before the action and focuses on effectiveness.

Strategy Formulation

This is primarily an intellectual process and a good intuitive and analytical skills

Strategy implementation

This is primarily an operational process and requires special motivation and leadership skills.

Equity financing

This is the sale of a percentage of the business to an investor, in exchange for capital.

Structure

This largely dictates how objectives and policies will be established and dictates how resources will be allocated

Management information system

This may be the most important factor in differentiating successful from unsuccessful firms.

production-related decisions

This of plant size, location, product design, inventory, quality control, shipping, packaging, can have a dramatic impact on the success or failure of strategy-implementation efforts.

Policy

This provide a basis for management control and allow coordination across organizational units and this also clarify what work is to be done and by whom. clarify what can and cannot be done in pursuit of an organization's objectives.

Annual Objectives

This should be established at the corporate, divisional, and functional levels in a large organization

Annual Objectives

This should be measurable, quantitative, challenging, realistic, consistent, and prioritized

1. Social media marketing 2. Segment markets effectively. 3. Develop and use product-positioning or perceptual mapping.

Three marketing activities especially important in strategy implementation

Social Media Marketing

get customers involved in the company website and solicit suggestions in terms of product development, customer service, and ideas.

Confrontation

holding a meeting at which conflicting parties present their views and work through their differences

Avoidance

ignoring the problem in hopes that the conflict will resolve itself

Market Segmentation

subdividing of a market into distinct subsets of customers according to needs & buying habits; widely used in implementing strategies

Force change strategy, Educative change strategy, rational or self-interest change strategy

the 3 strategies in dealing with resistance to change

strategic business unit (SBU) structure

Groups similar divisions into thid and delegates authority and responsibility for each unit to a senior executive who reports directly to the CEO.

Strategic Business Unit Structure

Helps improves coordination between similar divisions and channeling accountability to distinct business units

Avoidance, Defusion, Confrontation

3 ways to manage conflict

Production site

A major part of the strategy-implementation process takes place here

HR issues

Any organization is only good as its people! Thus, ______________ can make or break successful strategy implementation

1.Strategies such as market development, product development, market penetration, and diversification require increased sales through new markets and products 2.Market segmentation allows a firm to operate with limited resources because mass production, mass distribution, and mass advertising are not required. 3.Market segmentation decisions directly affect marketing mix variables: product, place, promotion, and price

MS is important variable because of 3 major reasons

3 years

Most financial institutions require_______ of projected financial statements whenever a business seeks capital

perceptual mapping

Product positioning is Also called

first firm, innovate imitator, low-cost producer

R&D approaches for implementing strategies

1.Emphasize product or process improvements 2.Stress basic or applied research 3.Be leaders or followers in R&D 4.Develop robotics or manual-type processes 5.Spend a high, average, or low amount of money on R&D 6.Perform R&D within the firm or contract R&D to outside firms 7.Use university researchers or private-sector researchers

R&D policies can enhance strategy implementation efforts to:

debt & equity.

Successful strategy implementation often requires additional capital. Besides net profit from operations & the sale of assets, 2 basic sources of capital: _________

Functional structure

These are groups tasks and activities by business function, such as production/operations, marketing, finance/accounting, research and development, and management information systems

Policy

These are specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals, and set boundaries, constraints, and limits actions that can be taken to reward and sanction behavior

R&D managers

They have to transfer complex technologies or develop new technologies to successfully implement strategies.

Marketing departments

They must implement strategies that require significant increases in sales revenues in new areas and with new or improved products.

projected income statement and balance sheet

This allows an organization to compute projected financial ratios under various scenarios.

Stocks , Bond

___________; (Preferred or Common) are a stake of ownership in a company, ______________; is a debt that the company or entity enters into with the investor

rational or self-interest change strategy

attempts to convince individuals that the change is to their personal advantage

Conflict

disagreement between two or more parties on one or more issues (Expectations, perception, personalities, misunderstandings between line and staff managers)

Force change strategy

involves giving orders and enforcing those orders

Restructuring

involves reducing the size of the firm in terms of number of employees, number of divisions or units, and number of hierarchical levels in the firm's organizational structure

Projected Financial Statement Analysis

is a technique that allows an organization to examine the expected results of strategies being implemented.

Educative change strategy

one that presents information to convince people of the need for change

Defusion

playing down differences between conflicting parties while accentuating similarities & common interests

cost reduction

primary benefit sought from restructuring is

select key criteria, diagram map, plot competitors' products, look for niches, develop marketing plan

product positioning steps

1.linking performance and pay to strategy 2.balancing work life with home life 3.developing a diverse work force 4.using caution in hiring a rival's employees 5.creating a strategy-supportive culture 6.using caution in monitoring employees' social media 7.developing a corporate wellness program

seven human resource issues

Annual Objectives

short-term milestones that organizations must achieve to reach long-term objectives

Divisional structure

these are functional activities are performed both centrally and in each separate division (e.g. Geographic area, product or service, customer, process)

Information system managers

they are being called upon to provide leadership and training for all individuals in the firm.

R&D personnel

they can play an integral part in strategy implementation. They transfer complex technology, adjust process to local raw materials, adopt process to local markets, alter products to local tastes and specifications.

Finance and accounting managers

they must devise effective strategy-implementation approaches at low cost, minimum risk to that firm.

Strategic management

this enables resources to be allocated according to priorities established by annual objectives

Financial, Physical, Human, Technological

types of resources