Professional Documents
Culture Documents
Lecture 7
The Nature of Strategy Implementation
The greatest strategy is doomed if it’s implemented badly.
Division or
Strategists Functional
Managers
Management Issues
Annual Objectives
Resources
Management
Issues Organizational structure
Restructuring
Management Issues (cont’d)
Resistance to Change
Management
Issues Production/Operations
Management Issues
Purpose of Annual Objectives --
Measurable
Consistent
Reasonable
Challenging
Clear
Understood
Timely
Management Issues
Quantity
Quality
Cost
Time
Be Verifiable
Management Issues
Resource Allocation
enables resources to be allocated according to
priorities established by annual objectives. However
it may cause conflict. Is this good or bad?
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Management Issues
Resource Allocation
4 Types of Resources
1. Financial resources
2. Physical resources
3. Human resources
4. Technological resources
Management Issues
Organizational
New strategy New administrative
performance
Is formulated problems emerge
declines
Organizational
New organizational
performance
structure is established
improves
Management Issues
Restructuring
1. Market segmentation
2. Product positioning
Marketing Issues
Market Segmentation: Subdividing of a
market into distinct subsets of customers
according to needs and buying habits
Distribution
Quality Advertising Level
channels
Distribution Discounts &
Features Personal selling
coverage allowances
Inventory
Packaging
levels/locations
Transportation
Product line
carriers
Warranty
Service level
26
Marketing Issues
Product Positioning
2. Diagram Map
5. Develop Marketing
Plan
Product Positioning Map
High
Convenience Rental Car Market
•
Firm 1
Firm 2
•
High Low
Customer Customer
Loyalty Loyalty
•
Firm 3
Low
Convenience
Marketing Issues
Product Positioning as Strategy Implementation
Tool
• MIS used to :
• Information collection, retrieval, & storage
• Keeping managers informed
• Coordination of activities among divisions
• Allow firm to reduce costs
MIS Issues
Functions of MIS