Page 240 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Unit 12: Management Control for Differentiated Strategies

Implementing and Executing the Strategy: Phase 4 of the Strategy-making, Notes
Strategy-executing Process

In most situations, managing the strategy-execution process includes the following principal
aspects:
1. Staffing the organization with the needed skills and expertise, consciously building and
strengthening strategy-supportive competencies and competitive capabilities and
organizing the work effort.
2. Developing budgets that steer ample resources into those activities critical to strategic
success.
3. Ensuring the policies and operating procedures facilities rather than impede effective
execution.

4. Using the best-known practices to perform core business activities and pushing for
continuous improvements. Organizational units have to, periodically, reassess how things
are being done and diligently pursue useful changes and improvements in how the strategy
is being executed.
5. Installing information and operating systems that enable company personnel to carry out
their strategic roles better day in and day out.

Inflating Corrective Adjustments: Phase 5 of the Strategy-making,
Strategy-executing Process

A company’s vision, objectives, strategy, and approach to strategy execution are never final;
managing strategy is an ongoing process, not an every now and then task.

Self Assessment

Fill in the blanks:
3. …………………business units typically produce no-frill commodity products, and these
products succeed primarily because they have lower prices than competing products.
4. At the first level of responsibility, the overall objective is usually, earning the
………………………. of the funds invested in the business, consistent with maintaining
the sound financial position of the business.

Tasks
1. Which of the following is organized to overcome the physical and biological
limitations of an individual in dealing with their environment?
(a) Subunits (b) Goals
(c) Procedures (d) None of the above
2. Which one of the following is the qualitative key indicator for the banking industry?

(a) Credits (b) Per employee ratio for deposits
(c) Recovery of loan (d) Profits and advances
Contd...

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