These smaller objectives are specifically designed to achieve financial, marketing, operations, human resources and other functional goals. Measuring performance is another important activity in strategy monitoring. Firms assess their competitors using competitors profile matrix and benchmarking to evaluate their strengths, weaknesses and level of performance.
This creates resistance to change, which has to be managed in an appropriate way or it could ruin excellent strategy implementation.
An organization holds both tangible resources: Or market development strategy may require an additional division to be added to the company. Managers have to compare their actual results with estimated results and see if they are successful in achieving their objectives.
In this section we will illustrate and comment on 3 more well-known frameworks presented by recognized scholars in the strategic management field. Communication in strategy implementation is essential as new strategies must get support all over organization for effective implementation.
They act as directions for specific strategy selection. Competition is another uncontrollable external force that influences the company.
It also redistributes responsibilities and powers between managers. At this stage managerial skills are more important than using analysis. Micro environment affects the company in its industry.
What does an organization want to become? Change the reward system. Creating a Vision and Mission statements. If objectives are not met managers should: If new circumstances affect the company, managers must take corrective actions as soon as possible.
Managers may be moved from one functional area to another or asked to manage a new team. Thorough mission statement acts as guidance for managers in making appropriate Rothaermel, p.
The other very important part of strategy implementation is changing an organizational chart. This type of strategy is used when strategic business units SBUdivisions or small and medium enterprises select strategies for only one product that is sold in only one market.
Performance has to be measurable and comparable. The one, which was described in this article, is just one more version of so many models that are established by other authors.
Vision is the ultimate goal for the firm and the direction for its employees. During an external environment analysis managers look into the key external forces: Internal environment analysis, External environment analysis and Competitor analysis Tools used: It consists of the following 6 steps: The main questions to answer: In an organization, strategies are chosen at 3 different levels: Setting annual objectives; Revising policies to meet the objectives; Allocating resources to strategically important areas; Changing organizational structure to meet new strategy; Managing resistance to change; Introducing new reward system for performance results if needed.
The starting point of the process is initial assessment of the firm. A good example of this was when Apple released its IPod and shook the mp3 players industry, including its leading performer Sony.
They select between integration, intensive, diversification and defensive strategies. How far to diversify? For example, a product diversification strategy may require new SBU to be incorporated into the existing organizational chart.
At this level, executives at top parent companies choose which products to sell, which market to enter and whether to acquire a competitor or merge with it. Usually, tactics rather than strategies are changed to meet the new conditions, unless firms are faced with such severe external changes as the credit crunch.
Different models of the process There is no universal model of the strategic management process. Every new strategy changes the organizational structure and requires reallocation of resources.
Successful situation analysis is followed by creation of long-term objectives.The process of strategic management lists what steps the managers should take to create a complete strategy and how to implement that strategy successfully in the company.
It might comprise from 7 to nearly 30 steps  and tends to be more formal in well-established organizations. The ways that strategies are created and realized.
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Lenovo is a $30 billion electronics company and the world’s second-largest PC vendor. It employs 30, people, operates in more than 60 countries and serves customers in more than countries.Download