Page 189 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 10: Strategy Implementation

the strategic management process. This is so because there has to be a “fit” between the strategy Notes
and the organisation.

10.1 Activating Strategies

There is no guarantee that a well designed strategy is likely to be approved and implemented
automatically. The strategic leader must, therefore, defend the strategy from every angle,
communicate how the strategy when implemented would benefit the whole organisation and
secure the wholehearted support of employees working at various levels. To keep things on
track, he can list out priorities, programme implementation process, budgets, etc. on paper so
that nothing is left to chance.
While giving a concrete shape to the strategy, he should also take note of regulatory mechanisms
that govern business activity and see that everything is in order. Some of the important things
to be kept in mind are listed below:
1. Formation of a company: This must be in line with provisions of the Companies Act, 1956,
covering issues such as formation of a company, its registration, obtaining suitable licenses
before commencing operations, raising funds from various sources in accordance with the
provisions of SEBI Act, 1992.
2. Operations of a company: The company must compete in a fair way and earn the profits
through legally blessed routes only observing the (a) provisions of competition law; (b)
Import/export restrictions, (c) FERA regulations (FEMA regulations, 2000); (d) Patent,
trademark, copyright (Indian Patents Act 1995, The Trade and Merchandise Marks Act
1958, The Copyrights Act 1957 etc.) stipulations; (e) Labour Laws (regarding employment
of women, children, payment of wages, providing welfare amenities, keeping healthy
industrial relations etc.); (f) environmental protection (The Environment Protection Act
1986), (g) pollution control requirements; (h) consumer protection measures etc.
3. Winding up operations: Even when the company decides to get out of a venture/business,
the rules of the game need to be followed scrupulously (whether in offering golden
handshake to employees or asking all the employees to quit in one go).
After the institutionalisation of strategy in the above manner, action plans could be formulated.
These are basically functional level strategies undertaken at the departmental level and usually
deal with operational aspects of a strategy. The action plans, however, must try to translate the
overall strategic plan in letter and spirit without any deviations. Issues like who will do what,
what kind of support is required at various stages, what kind of privities have to be fixed while
implementing active plans, how does a particular active plan contribute to the broad objectives
of the strategy etc. must also be carefully looked into. Once the action plans are ready, the
strategist must resolve issues relating to allocation of scarce resources over the entire
organisation.

10.2 Nature of Strategy Implementation

A successful strategy formulation does not guarantee successful strategy implementation. It
affects an organisation from top to bottom; it affects all divisional and functional areas of
business. It requires the right alignment between the strategy and various activities, processes
within the organisation.
The complexities in the task of implementation arise from a number of organisational
adjustments that are required over an extended period of time and the need to match them all to
the strategy. Key people need to be added or reassigned, resources have to be mobilised and
allocated, functional strategies and policies are to be designed, organisational structure may

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