BBA4951 CSU Strategy Implementation and Formularion Questions QUESTION 1 Briefly explain seven of the guidelines to follow in developing an organizational
BBA4951 CSU Strategy Implementation and Formularion Questions QUESTION 1
Briefly explain seven of the guidelines to follow in developing an organizational chart.
Your response should be at least 200 words in length.
QUESTION 2
Define and give an example of business analytics. Why is this technique becoming so widely used in organizations today?
Your response should be at least 200 words in length.
QUESTION 3
Describe a conflict situation that requires you to use 1) avoidance, 2) defusion, and 3) confrontation in order to solve the problem.
Your response should be at least 200 words in length.
QUESTION 4
Strategy formulation focuses on effectiveness, whereas strategy implementation focuses on efficiency. Which is more importanteffectiveness or efficiency? Give an example of each concept, and explain your answer.
Your response should be at least 200 words in length.
Textbook:
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.) [VitalSource Bookshelf version]. Boston, MA: Pearson. Retrieved from https://online.vitalsource.com/#/books/97801341679… UNIT V STUDY GUIDE
Implementing Strategy
Course Learning Outcomes for Unit V
Upon completion of this unit, students should be able to:
8. Examine the process of implementing strategies across business operations.
10. Diagram the strategy review and control process.
Reading Assignment
Chapter 7: Implementing Strategies: Management, Operations, and Human Resource Issues
Chapter 8: Implementing Strategies: Marketing, Finance/Accounting, R and D, and MIS Issues
Unit Lesson
Implementing Strategy
Chapters 7 and 8 will focus on how to implement strategies. Within the discussion, there will be ways to
effectively define an organizational structure and manage organizational culture, corporate wellness, and
employee and executive compensation. Additionally, you will learn ways to handle resistance to change,
human resource issues, and restructuring.
Strategic formulation is the positioning of forces before an action is conducted, while strategy implementation
is managing the forces during the action. For example, the formulation attempts to preempt a strategy based
on many factors to include market conditions and structure. The strategy implementation is how to implement
the strategy during the actual operational process. The chart below has been created to articulate the
variances between the two strategies.
Strategy Formulation
Before an action occurs
Effectiveness
Intellectual process
Good and analytical skills
Coordination among few
Strategy Implementation
During the action
Efficiency
Operational process
Motivation and leadership skills
Coordination among many
Annual Objectives
The annual objective process is a decentralized organization inclusive process that includes all managers and
leaders within the organization. Annual objectives assist with the allocation of resources, evaluating
managers, monitoring progress, and establishing organizational priorities. The textbook defines annual
objectives as being measurable, consistent, challenging, and able to be clearly communicated throughout the
organization (David & David, 2017). It is also noted that the objectives should be compatible with employees
values system. These are generally revised on an annual basis in an effort to remain relevant to both the
consumer and the employees.
Policies
In an effort to fully implement strategies, an organization may need to update or incorporate new policies to
assist with achieving the organizational goals. Policy is defined as guidelines, rules, and administrative
practices to support the organization to achieve their stated goal (David & David, 2017). For example, a policy
BBA 4951, Business Policy and Strategy
1
for a fast food restaurant may be to offer their employees reduced cost meals,UNIT
but not
free meals.
The thought
x STUDY
GUIDE
process is that the employees may literally eat the profits of the restaurant. ByTitle
requiring a policy of a reduced
cost, the employer is able to break even while maintaining profit margins from their paying customers. The
policy may also include provisions; for instance, if an employee does not pay for his or her meal, this is
considered stealing and grounds for termination. Another policy may be a universal ban related to smoking on
the organizations property. This policy would potentially affect their customers, employees, and visitors.
Managing Conflict
Conflict has the potential to occur within any organization, regardless of facility type. Conflict is defined as a
disagreement between two or more parties on one or more issues (David & David, 2017, p. 213). Conflict
can be as simple as rearranging employees schedules to better support the needs of customers. The
rearrangement may cause personal issues for the employees; resolution (conflict approach) can be initiated
to resolve any potential issues. Individuals may have different expectations based on required objectives, thus
potentially creating conflict. Sometimes, conflict is healthy for an organization, as long as it can be resolved
before it becomes dysfunctional or hostile. An example of healthy conflict could arise while deciphering where
to place a product and how to produce the product. This type of product induces deeper thought and
appreciation of the team effort. Conflict can promote values and increase outcomes if carried out in a way
that is constructive to both entities. There are different types of approaches related to conflict, and these are
articulated in the chart below:
Conflict Approach
Avoidance
Defusion
Confrontation
Description
Ignoring the issue or problem
Playing down or compromising
Exchange between entities so they can work
through their problems
Conflict is a fact of life whether within the organization or outside the system. Employers who recognize that
conflict (internally and externally) exists and are willing to implement procedures and practices to defuse
those instances are miles ahead of those who choose to ignore the conflict. Cascio and Boudreau (2011)
point out that different employees deal with conflict in different ways (p. 174). An increase in absences and
job related injuries, a decline in collaboration, and a reduction in the family friendly culture of the work place
are all signs of unresolved conflict.
There is not a magic bullet to create an environment where conflict is resolved in a positive way. While there
is a wealth of self-help theories, the fact remains that the approach taken will be case specific. It is
commonly accepted that the most efficient and effective way to deal with conflict is to design solidly facilitated
focus groups within the work team where everyones voice is heard and everyones input is valued. When
procedures are in place, the institution can reach consensus and successfully move beyond the conflict and
actually may grow from the experience.
Strategy Implementation
During the past couple of units, we have focused extensively on strategy formulation. The next step is to take
a look at strategy implementation, followed by the third step of strategy evaluation. Strategy implementation
affects all levels of management and employees within an organization. Implementation includes marketing,
finance, research and development, and information system(s) to effectively support strategic management.
Marketing can play a large role in an organizations success. Marketing issues can include social mobilization,
TV versus online marketing, and consumer driven expectations to include pricing and warranties.
Segmentation
Market segmentation is defined as product positioning based on subdividing the market to target specific
customers (David & David, 2017). For example, the cable-based television station MTV probably would not be
the target channel to roll out a TV advertisement related to family-friendly caravans. These types of
advertisements may be more favorable to a different demographic. Another example is to target a regional
demographic. McDonalds Corporation conducts extensive research to target sandwiches to support specific
regional demographics. For example, in India, McDonalds does not carry beef products in an effort to be
culturally sensitive; instead, McDonalds provides non-beef options, such as vegetarian, chicken, and fish.
BBA 4951, Business Policy and Strategy
2
Facebook is another example that uses targeted marketing to encourage customers
purchase
a product or
UNIT xto
STUDY
GUIDE
service that they may be interested in.
Title
References
Cascio, W., & Boudreau, J. (2011). Investing in people: financial impact of human resource initiatives. Upper
Saddle River, NJ: Pearson Education.
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and
cases (16th ed.) [VitalSource Bookshelf version]. Retrieved from
https://online.vitalsource.com/#/books/9780134167947
Suggested Reading
The chapter presentations below will provide you with additional information on this units concepts.
Click here to access the PowerPoint version of the Chapter 7 Presentation.
Click here to access the PDF version of the Chapter 7 Presentation.
Click here to access the PowerPoint version of the Chapter 8 Presentation.
Click here to access the PDF version of the Chapter 8 Presentation.
BBA 4951, Business Policy and Strategy
3
Strategic Management Concepts: A
Competitive Advantage Approach
Sixteenth Edition
Chapter 7
Implementing Strategies:
Management, Operations,
and Human Resource Issues
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
7.1 Describe the transition from formulating to implementing
strategies.
7.2 Discuss five reasons why annual objectives are
essential for effective strategy implementation.
7.3 Identify and discuss six reasons why policies are
essential for effective strategy implementation.
7.4 Explain the role of resource allocation and managing
conflict in strategy implementation.
7.5 Discuss the need to match a firms structure with its
strategy.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (2 of 2)
7.6 Identify, diagram, and discuss seven different types of
organizational structure.
7.7 Identify and discuss fifteen dos and donts in constructing
organizational charts.
7.8 Discuss four strategic production/operations issues vital
for successful strategy implementation.
7.9 Discuss seven strategic human resource issues vital for
successful strategy implementation.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Figure 7-1 Comprehensive StrategicManagement Model
Source: Fred R. David, How Companies Define Their Mission, Long Range Planning 22, no. 3 (June 1988): 40. See
also Anik Ratnaningsih, Nadjadji Anwar, Patdono Suwignjo, and Putu Artama Wiguna, Balance Scorecard of Davids
Strategic Modeling at Industrial Business for National Construction Contractor of Indonesia, Journal of Mathematics
and Technology, no. 4, (October 2010): 20.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Nature of Strategy Implementation
Strategy Formulation
Strategy Implementation
Strategy formulation is
positioning forces before the
action.
Strategy implementation is
managing forces during the
action.
Strategy formulation focuses
on effectiveness.
Strategy implementation
focuses on efficiency.
Strategy formulation is
primarily an intellectual
process.
Strategy implementation is
primarily an operational
process.
Strategy formulation requires Strategy implementation
good intuitive and analytical
requires special motivation and
skills.
leadership skills.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Annual Objectives
Annual Objectives:
1. Represent the basis for allocating resources
2. Are a primary mechanism for evaluating managers
3. Are the major instrument for monitoring progress toward
achieving long-term objectives
4. Establish organizational, divisional, and departmental
priorities
5. Are essential for keeping a strategic plan on track
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Figure 7-3 The Stamus Companys
Hierarchy of Aims
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Policies (1 of 3)
Policy
specific guidelines, methods, procedures, rules, forms,
and administrative practices established to support and
encourage work toward stated goals
instruments for strategy implementation
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Policies (2 of 3)
Policies
set boundaries, constraints, and limits on the kinds of
administrative actions that can be taken to reward and
sanction behavior
let both employees and managers know what is
expected of them, thereby increasing the likelihood that
strategies will be implemented successfully
provide a basis for management control and allow
coordination across organizational units
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Policies (3 of 3)
Policies
reduce the amount of time managers spend making
decisions. Policies also clarify what work is to be done
and by whom.
promote delegation of decision making to appropriate
managerial levels where various problems usually
arise.
clarify what can and cannot be done in pursuit of an
organizations objectives.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Types of Resources
Financial
Physical
Human
Technological
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Resource Allocation
Resource Allocation
central management activity that allows for strategy
execution
Strategic management enables resources to be
allocated according to priorities established by annual
objectives
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Managing Conflict
Conflict
Disagreement between two or more parties on one or
more issues
Establishing annual objectives can lead to conflict
because individuals have different expectations and
perceptions, schedules create pressure, personalities
are incompatible, and misunderstandings occur
between line managers and staff managers
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Managing Conflict (1 of 2)
Avoidance
Includes such actions as ignoring the problem in hopes
that the conflict will resolve itself or physically
separating the conflicting individuals
Defusion
Includes playing down differences between conflicting
parties while accentuating similarities and common
interests
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Managing Conflict (2 of 2)
Confrontation
exemplified by exchanging members of conflicting
parties so that each can gain an appreciation of the
others point of view or holding a meeting at which
conflicting parties present their views and work through
their differences
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 7-5 Some Management Trade-Off
Decisions Required in Strategy Implementation
To emphasize short-term profits or long-term growth
To emphasize profit margin or market share
To emphasize market development or market penetration
To lay off or furlough
To seek growth or stability
To take high risk or low risk
To be more socially responsible or more profitable
To outsource jobs or pay more to keep jobs at home
To acquire externally or to build internally
To restructure or reengineer
To use leverage or equity to raise funds
To use part-time or full-time employees
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Matching Structure With Strategy
Structure largely dictates how objectives and policies will
be established
Structure dictates how resources will be allocated
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 7-6 Symptoms of an Ineffective
Organizational Structure
1.
Too many levels of management
2.
Too many meetings attended by too many people
3.
Too much attention being directed toward solving interdepartmental conflicts
4.
Too large a span of control
5.
Too many unachieved objectives
6.
Declining corporate or business performance
7.
Losing ground to rival firms
8.
Revenue or earnings divided by number of employees or number of
managers is low compared to rival firms
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Functional Structure
Functional Structure
groups tasks and activities by business function, such
as production/operations, marketing,
finance/accounting, research and development, and
management information systems
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 7-7 Advantages and Disadvantages of
a Functional Organizational Structure
Advantages
Disadvantages
1. Simple and inexpensive
1. Accountability forced to the top
2. Capitalizes on specialization of
business activities such as marketing
and finance
2. Delegation of authority and
responsibility not encouraged
3. Minimizes need for elaborate control
system
3. Minimizes career development
4. Allows for rapid decision making
4. Low employee and manager morale
Blank
5. Inadequate planning for products and
markets
Blank
6. Leads to short-term, narrow thinking
Blank
7. Leads to communication problems
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Divisional Structure
Functional activities are performed both centrally and in
each separate division
Organized by geographic area, product or service,
customer, or process
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Table 7-8 Advantages and Disadvantages of
a Divisional Organizational Structure
Advantages
Disadvantages
1. Clear accountability
1. Can be costly
2. Allows local control of local situations
2. Duplication of functional activities
3. Creates career development chances
3. Requires a skilled management force
4. Promotes delegation of authority
4. Requires an elaborate control system
5. Leads to competitive climate internally
5. Competition among divisions can become so
intense as to be dysfunctional
6. Allows easy adding of new products or
regions
6. Can lead to limited sharing of ideas and
Resources
7. Allows strict control and attention to
products, customers, or regions
7. Some regions, products, or customers may
receive special treatment
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The Strategic Business Unit (SBU) Structure
SBU Structure
groups similar divisions into strategic business units
and delegates authority and responsibility for each unit
to a senior executive who reports directly to the chief
executive officer
can facilitate strategy implementation by improving
coordination between similar divisions and channeling
accountability to distinct business units
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Matrix Structure (1 of 2)
Matrix Structure
most complex of all designs because it depends upon
both vertical and horizontal flows of authority and
communication
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The Matrix Structure (2 of 2)
For a matrix structure to be effective, organizations need
participative planning, training, clear mutual understanding
of roles and responsibilities, excellent internal
communication, and mutual trust and confidence
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Table 7-9 Advantages and Disadvantages of
a Matrix Structure
Advantages
Disadvantages
1. Clear project objectives
1. Requires excellent vertical and horizontal
flows of communication
2. Results of their work clearly seen by
employees
2. Costly because creates more manager
positions
3. Easy to shut down a project
3. Violates unity of command principle
4. Facilitates uses of special equipment,
personnel, and facilities
4. Creates dual lines of budget authority
5. Shared functional resources instead of
duplicated resources, as in a divisional
structure
5. Creates dual sources of reward and
punishment
Blank
6. Creates shared authority and reporting
Blank
7. Requires mutual trust and understanding
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Figure 7-6 Typical Top Managers of a Large
Firm
Note: Titles spelled out as follows.
Chief Executive Officer (C EO)
Chief Finance Officer (C FO)
Chief Strategy Officer (C SO)
Chief Information Officer (C IO)
Human Resources Manager (H RM)
Chief Operating Officer (C OO)
Chief Legal Officer (C LO)
Research & Development Officer (R &D)
Chief Marketing Officer (C MO)
Chief Technology O…
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