Page 66 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes 3. These objectives should, in the light of the situation analysis, suggest a strategic plan. The
plan provides the details of how to achieve these objectives.
This three-step strategy formulation process is sometimes referred to as determining where you
are now, determining where you want to go, and then determining how to get there. These three
questions are the essence of strategic planning.

Strategy Implementation

The following steps are involved in strategic implementation:
1. Allocation and management of sufficient resources (financial, personnel, operational
support, time, technology support)
2. Establishing a chain of command or some alternative structure (such as cross functional
teams)
3. Assigning responsibility of specific tasks or processes to specific individuals or groups
4. It also involves managing the process. This includes monitoring results, comparing to
benchmarks and best practices, evaluating the efficacy and efficiency of the process,
controlling for variances, and making adjustments to the process as necessary.

5. When implementing specific programs, this involves acquiring the requisite resources,
developing the process, training, process testing, documentation, and integration with
(and/or conversion from) legacy processes.

Thus, when the strategy implementation processes, there are many problems that a manger has
to take care of, such as those involving human relations and/or the employee-communication.
At this stage, the greatest implementation problem usually involves marketing strategy, with
emphasis on the appropriate timing of new products. An organisation, with an effective
management, should try to implement its plans without signaling the fact to its competitors.
In order for a policy to work, there must be a level of consistency from every person in an
organisation, including from the management. This is what needs to occur on the tactical level
of management as well as strategic.

Strategy Evaluation

While measuring the effectiveness of the organisational strategy, it’s extremely important to
conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats
(both internal and external) of the entity in question. This may require to take certain
precautionary measures or even to change the entire In corporate strategy, Johnson and Scholes
present a model in which strategic options are evaluated against three key success criteria:
1. Suitability (would it work?)
2. Feasibility (can it be made to work?)
3. Acceptability (will they work it?)

Let us understand each of them one by one.
1. Suitability: Suitability deals with the overall rationale of the strategy. The key point to
consider is whether the strategy would address the key strategic issues underlined by the
organisation’s strategic position.
(a) Does it make economic sense?

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