Topic 8:
Implementing strategy
(From Plans to Action)
STRATEGIC MANAGEMENT PROCESS
(For the Whole Company )
PERFORMS
EXTERNAL
AUDIT (3)
DEVELOP GENERATE, IMPLEMENT MEASURE &
ESTABLISH
VISION & EVALUATE, & & EXECUTE EVALUATE
LONG-TERM
MISSION SELECT STRATEGIES RESULTS
OBJECTIVES
STATEMENTS STRATEGIES (Phase 6) (Phase 7)
(Phase 4)
(Phase 1) (Phase 5)
PERFORMS
INTERNAL
AUDIT(2)
FORMULATION(T(top/middle management) IMPLEMENTATION EVALUATION
(Middle/First line)
Operational Goals
(The day to day tasks)
Strategic Planning-Total
Company
( Top Management)
Operational Planning
(tactical)
( all departments)
Operational implementation
( all departments)
[Link] operational goals(= or< 1yr)-1
Operational goals
Outcomes to be achieved by an organizational
department, workgroup or individual member
Develop operational goals(= or< 1yr)-2
Operational goals
Outcomes to be achieved by an
organizational department, workgroup or
individual member
Operational Goals(Marketing Department)
Same goal different execution
From Total Company Objective 2023 (P1.0 billion) 2024(P1.1 billion)
Increase by10% ( P 100 million)
Strategy: Expand Business foothold to Northern Luzon
Increase Sales by 10% next year(goal)
MM, Northern Luzon(existing products)=8% Additional A &P
Where will you get the balance 0f 2%=Develop a New Product(details
next)
Operational Goals(Sales Department)
From Total Company Objective 2023 (P1.0 billion) 2024(P1.1 billion) Increase
by10% ( P 100 million)
Strategy: Expand Business foothold to Northern Luzon
Strategy-Sales Department(example currently in MM)
Increase Sales by 10% next year(goal)
Increase MM sales- 5% (P 50 million)
Expand to northern Luzon-5%(P 50 million)
Groups-Teams-Individuals(Target/salesman/Territory)
Timetable (January to December)
2. Develop Operational Plans
Operational plans ( departments, groups, teams)
Specify what activities will be used to meet a
goal,
when they should be accomplished (in light of
existing commitments and constraints),
And how the required resources will be acquired
2. Develop operational plans
Standing plans are operational plans for activities
that are performed repeatedly as follows:
Standard operating procedures outline specific
steps that must be taken when performing
recurring tasks (developing a new product)
Policies provide guidelines for making decisions
and taking action in various situations (i.e. returns
policies, discounting system, safety precautions,
etc.)
Rules and regulations are prescribed patterns ,of
behavior that guide work tasks (wearing face
masks, washing hands)
2. Develop Operational Plans
Compared to FBL and TBL management, a
SET approach tends to:
Involve the most stakeholders in making
plans,
Have more emergent and complex plans
(due to taking into account social and
ecological factors)
3. Implement and monitor goals and
plans
4. Learn from the strategy in action
Strategic Learning
Refers to using insights from an organization’s
actual strategy to improve its intended strategy
It is learning or changing while doing
The content school emphasizes the rational-
analytic, top-down, and linear aspects of strategy
formulation
The process school, (dynamic)
Emphasizes that strategy formulation and
implementation are ongoing and iterative
(refining)….
Where one aspect influences the other
Dynamic Plans
Plans should change with:
Significant developments in relevant events, circumstances
and situations
“The only thing constant is change”
4. Learn from the strategy in action
4. Learn from the strategy in action
QUESTIONS FOR REFLECTION AND DISCUSSION
1. Identify the four steps in implementing strategy. What
are the key differences in the content, orientation, and
process of the steps from an FBL, TBL, and SET view?
2. From an FBL perspective, which of the four steps of
implementing strategy do you think is the most
challenging? Answer the same question from a TBL and
from a SET perspective. Are there differences in your
answers for the three types of management? Explain.
3. What are the key similarities and differences between
SMART goals and SMART 2.0 goals?
4. Do you think that developing operational plans plays a
more central role in the FBL, the TBL, or in the SET
approach? Which approach is most difficult to put into
practice? Explain your answer.
QUESTIONS FOR REFLECTION AND DISCUSSION
5. Briefly describe the differences between the content
and process school analyses of how Honda motorcycles
became #1 in the U.S. market. The process school
description, which is based on interviews with the
managers involved, may be the more accurate portrayal
of what actually happened, but do you think the content
school description is more valuable for teaching
purposes? Put differently, if Honda had completed the
SWOT analyses and had chosen the correct strategy
prior to entering the U.S. (as consistent with the content
school approach), then it could have saved a lot of time
and money and avoided floundering around after it
arrived. On the other hand, perhaps doing the rational
analysis up front would not have resulted in the
successful strategy it eventually developed, and perhaps
the real key to Honda’s success was that managers
engaged in strategic learning during times of
floundering. Which approach do you think should be
QUESTIONS FOR REFLECTION AND DISCUSSION
6. Choose any one of the steps in formulating and
implementing strategy, and then draw upon Figure 9.4 to
describe how the four-step decision-making process
described in Chapter 7 can be used to explain how that
step is accomplished.
7. Use structuration theory, as depicted in Figure 9.4, to
describe a specific organizational change you are
familiar with.
8. Complete a stakeholder map for an organization you
would like to start up.
Entrepreneurial implications
(stakeholder maps)
2. Develop operational plans(details of new product
intro)