Page 202 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes Many ‘budget battles’ can be avoided if targets, resource sharing, prioritization, midway revisions
etc. are decided in an atmosphere of cooperation and participation, especially at departmental
and divisional levels.
Allocating resources to specific divisions and departments alone does not mean successful
implementation of the strategy. If major strategic shifts are occurring, the organisation structure
is likely to change along with the way resources are allocated.

Caselet No Fair!

he regular announcements in the Budget for women include the strengthening of
the Rashtriya Mahila Kosh for providing micro-credit to poor assetless women, the
Tlaunching of an integrated scheme for women's empowerment and the starting of
a new scheme for women in difficult circumstances such as the widows of Vrindavan,
Kashi and others who are destitute or disadvantaged.
However, the actual announcements in the Budget that impact women are more than
those announced under the specific women's bracket. Some are positive and some negative.
Resources are not fairly allocated for them.

Source: blonnet.com

10.6 Summary

Most strategies need resources to be allocated to them if they are to be implemented
successfully.
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.
Implementation of strategy involves a number of interrelated decisions, choices, and a
broad range of activities. It requires an integration of people, structures, processes etc.
Mc Kinsey’s 7-S model is good at capturing the importance of all these elements in the
implementation of strategy.
A company’s ability to acquire sufficient resources needed to support new strategic
initiatives and steer them to the appropriate organisational units has a major impact on
the strategy implementation process.

10.7 Keywords

Bottom-up Approach: In this approach, resources are distributed through a process of aggregation
from the operating level. The operating levels work out the requirements of each subunit and
the resources are allocated accordingly.
Capital Budgeting: used for long-term commitment of resources, such as capital investments in
mergers, acquisitions, joint ventures etc.
McKinsey 7-S Model: A model of organisational effectiveness that postulates that there are
seven internal factors of an organisation that needs to be aligned and reinforced in order for it
to be successful.

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