...INTRODUCTION It is useful to consider strategy formulation as part of a strategic management process that comprises three phases: diagnosis, formulation, and implementation. Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates. Diagnosis includes: (a) performing a situation analysis (analysis of the internal environment of the organization), including identification and evaluation of current mission, strategic objectives, strategies, and results, plus major strengths and weaknesses; (b) analyzing the organization's external environment, including major opportunities and threats; and (c) identifying the major critical issues, which are a small set, typically two to five, of major problems, threats, weaknesses, and/or opportunities that require particularly high priority attention by management. Formulation, the second phase in the strategic management process, produces a clear set of recommendations, with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them. In formulation, we are trying to modify the current objectives and strategies in ways to make the organization more successful. This includes trying to create "sustainable" competitive advantages -- although most competitive advantages are eroded...
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...The Nature of Strategy Implementation Successful strategy formulation does not guarantee successful startegy implementation. It is always more difficult to do something (strategy implementation) than to say you are going to do it (strategy formulation). Although inextricably linked, startegy implementation is fundamentally different from strategy fromulation. Strategy formulation and implementation can be contrasted in the following ways: * Strategy formulation is positioning forces before the action. * Strategy implementation is managing forces during the action. * Strategy formulation focuses on effectiveness. * Strategy implementation focuses in efficiency. * Strategy formulation is primarily an intellectual process. * Strategy implementation is primarily an operational process. * Strategy formulation requires good intuitive and analytical skills. * Strategy implementation requires special motivation and leadeship skills. * Strategy formulation requires coordination among a few individuals. * Strategy implementation requires coordination among many individuals. Management perspectives Implementation problems can arise because of the shift in responsibility, especially if SF decisions come as a surprise to middle- and lower-level managers. Therefore, it is essential to involve divisional and functional managers in strategy-formulation activities. Management Issues Central to Strategy Implementation * Establish annual objectives ...
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...STRATEGY Concept & Process By Ambarish | Amit | Hemant | Prasanth Its all about where do you want to go and how you mean to get there. Definition : Strategy A set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. The Concept of Strategy • Innovation • Quality • Cost Leadership Competitive Advantage Strategy Distinctive Capabilities • • • • Value Creation Rarity Non- Imitability Non-Substitutability Strategic Fit • Strategy renewal • Internal resources should be in-sync with the external environment The Fundamentals of Strategy • Long term objectives and goals of organizations. • Expression of the leadership position the organization wants to attain & establishes a clear criterion on how progress towards its achievement would be measured. - Hamel & Prahalad (1989) Strategic Intent Resource based strategy • The Strategic Capabilities of a firm depends on its resource capability. • Sustained competitive advantage stems from the acquisition and effective use of bundles of distinctive resources that competitors cannot imitate. – Barney (1991) Strategic Capabilities • Ability of an organization to develop and implement strategies that will achieve sustained competitive advantage. • It depends upon the strategic capability of the managers of the organization. • Its important to know...
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...environments. These environments include: the external or operating environment; the competitive environment and the macro environment in which influences such as the economy, government regulations, societal values, demographics and technology come to bear upon an organization. The external influencers included talents and the skills in the workforce, global competition, faster and more disruptive change within the industry, and technological developments. In today's world, organizations are very different due to competitive pressures and technological breakthroughs. Organizations today are: * leaner and more agile * more focused on identifying value from the customer perspective * more tuned to dynamic competitive requirements and strategy * less hierarchical in structure and decision authority * less likely to provide lifelong careers and job security * Continually reorganizing to maintain or gain competitive advantage. (Judith Heerwagen, Ph.D., J.H. Heerwagen & Associates, 2010) Today’s businesses face unique challenges. Leaders are confronted with increased competition, globalization, and demand for growing social responsibilities, technological...
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...business viability and competitiveness, organization needs to integrate fragmented landscape of KM with strategic management process. Keywords: Knowledge Management, Strategic Management. 1.0 INTRODUCTION According to Webb (1998), KM is the process of identification, optimization and active management of intellectual assets to create value, increase productivity and gain and sustain competitive advantage. Meanwhile, Murray (1998) said KM is a strategy that turns an organization’s intellectual assets and the talents of its members to produce new productivity, value and increase competitiveness. Therefore, we can conclude that KM is a discipline, designed to provide strategy, process, and technology to increase organizational learning. A part from that, strategy is the major plan to be undertaken and allocating resources to organization (Cannon, 1968). Aaker (1984) also suggested that, organization needs to assign people or a group of people to seize the responsibility for analysing new issues, such as KM and developing responsive strategies. This is due to the fact that KM is gradually turning into a major resource center for the organizations. The basic factors provide the changes for competition...
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...Strategy and Planning Paper Stella Heering MGT/521 University of Phoenix Kathryn Lea Introduction Goals are defined as an objective to do something within a measurable period of time (Davis, 2006). Goal setting is the most basic and fundamental element that is both at the organizational and individual levels. Goals setting should show clear directions and destination as to where people of the organization need to be moving towards. These goals can be long-term and short-term. Whether long-term or short-term, the end objective is always the same. In order to achieve the best results, there is an importance of service delivery improvement and the increase of the profit margins. The importance of this is that it enables the team to know what is supposed to be done and how it is to be done, results are also monitored and where possible adjustments can be made easily. Three types of goals When goal setting, there are three types that an organization can set by any given organization. These goals are ranged from a hierarchy, from top to bottom. Achieving the low-level goals that become a means of achieving the higher-level goals; strategic, tactical and operational goals (Davis, 1996). Goals set by upper management or top management that are mainly concerned with the main objectives of an organization is known as strategic goals. These goals are mainly meant for the top leaders of the organization...
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...along the way due to lack of proper strategy. Yes, I do believe that organizations with proper strategy implemented and managed stand a better chance and have better competitive advantage over their counterparts. Strategic management is used by organizations to analyze and learn from their internal and external environment. It is about going forward (where to from here) It is about establishing a strategic direction. It is about establishing a strategic direction Strategic management is also about implementing strategies that would satisfy customers. The nature of strategy, which needs to be managed, is formulated around the 5 Ps (Louw and Venter 2010:15) Plan, pattern, position, perspective and ploy. As a plan, strategy has been viewed as something that an organization has, and strategy as a perspective viewed as something that people do. Strategy is influenced by extra organizational practices and inter-organizational practices. Therefore there is a reciprocal relationship between intra and extra organizational strategic activities. - Strategy as a plan: Provides overall direction and course of action. As a plan, strategy formulation is a formal process. This approach ahs been criticized for being a rational, top-down approach, hoever research shows that formal planning contributes towards better strategic decision making. - Strategy as a position: concerns the determination of products. As a position, strategy looks downwards and outwards, towards...
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...Business Strategy Formulation: Theory, Process, and the Intellectual Revolution Anthony W. Ulwick QUORUM BOOKS Business Strategy Formulation Business Strategy Formulation Theory, Process, and the Intellectual Revolution Anthony W. Ulwick QUORUM BOOKS Westport, Connecticut • London Library of Congress Cataloging-in-Publication Data Ulwick, Anthony W., 1957– Business strategy formulation : theory, process, and the intellectual revolution / Anthony W. Ulwick. p. cm. Includes bibliographical references and index. ISBN 1–56720–273–X (alk. paper) 1. Strategic planning. I. Title. HD30.28.U44 1999 658.4'012—dc21 99–13714 British Library Cataloguing in Publication Data is available. Copyright ᭧ 1999 by Anthony W. Ulwick All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher. Library of Congress Catalog Card Number: 99–13714 ISBN: 1–56720–273–X First published in 1999 Quorum Books, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc. www.quorumbooks.com Printed in the United States of America The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48–1984). 10 9 8 7 6 5 4 3 2 1 Dedicated to my wife, Heather Lee, and our son, Anthony—my sources of love and inspiration. Contents Preface Acknowledgments Introduction 1. The...
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...com/BUS-490-WK-8-Quiz-7-Ch-7-All-Possible-Questions-BUS4907.htm BUS 490 WK 8 Quiz 7 Ch. 7 - All Possible Questions 1) Effective strategy formulation can usually guarantee successful strategy implementation. 2) Strategy formulation is the managing of forces during the action, whereas strategy implementation is the positioning of forces before the action. 3) Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many. 4) It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation). 5) Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations. 6) A bottom-up flow of communication is essential for developing top-down support. 7) Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated. 8) Horizontal consistency is more important than vertical consistency in developing annual objectives. 9) Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives. 10) Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals. 11) Strategies clarify what can and cannot be done in pursuit of an organization's objectives. 12) Not allocating resources...
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...com/BUS-490-WK-8-Quiz-7-Ch-7-All-Possible-Questions-BUS4907.htm BUS 490 WK 8 Quiz 7 Ch. 7 - All Possible Questions 1) Effective strategy formulation can usually guarantee successful strategy implementation. 2) Strategy formulation is the managing of forces during the action, whereas strategy implementation is the positioning of forces before the action. 3) Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many. 4) It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation). 5) Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations. 6) A bottom-up flow of communication is essential for developing top-down support. 7) Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated. 8) Horizontal consistency is more important than vertical consistency in developing annual objectives. 9) Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives. 10) Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals. 11) Strategies clarify what can and cannot be done in pursuit of an organization's objectives. 12) Not allocating resources...
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...business is subject to the same conditions, opportunities, and challenges when it comes to developing a competitive strategy. Yet, when the time comes for companies to actually put their strategies into practice, those that possess the ability to execute them effectively and sustainably are at an advantage. The key to success is therefore not only how a strategy is devised, but also how it is actually executed. Besides addressing the challenges associated with strategy development, discussions in recent years are increasingly dealing with problems of strategy execution. According to a study published in the Harvard Business Review, companies realize...
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...resource management (HRM) practices and its integration to business is critical to achieve organisational strategic goals. However, little research has to date examined strategic integration in this specific human resource (HR) practice, and, therefore, little is known about the level and application of recruitment and selection strategic integration a situation that warrants greater investment due to the economic growth in India in a corresponding expansion of Indian enterprises. Consequently, this study investigates the level at which recruitment and selection practices integrate with business strategies and the relative effects of different levels of such strategic integration on organisational performance in 259 Indian enterprises. The results show the majority of Indian enterprises had a high level of recruitment and selection strategic integration in business strategy formulation and implementation. Moreover, the level of recruitment and selection strategic integration was positively related to growth in market share, profits and sales, employees’ satisfaction, employees’ productivity, and negatively related to employees’ turnover. The implications for HRM practitioners and further research are discussed. Introduction Recruitment and selection is the process of attracting individuals on a timely basis, in sufficient numbers and with appropriate qualifications. Following the initial selection of incumbents they are likely to again be chosen to develop their further interest...
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...Gillette Mission Statement: “Our mission is to achieve or enhance clear leadership, worldwide, in the existing or new core consumer product categories in which we choose to compete”. SWOT ANALYSIS: Strengths: * They are undisputed market leader as they have the greatest market share all over the world. * They have been performing for more than hundred years so they have very sound goodwill in the market. * They have a very big distribution system. Their products are sold all over the world and people purchase their products by asking the name of Gillette. * Their research and development centers are very efficient and effective. They are very innovative. All the time they are introducing new differentiated products with high quality and more customer satisfaction. * Their adve0rtising campaigns are very attractive and customer attention seeking. * They are very much concerned about their customers. * They have diversified business with 85 product categories that reduces risk and increases profitability. * Good displays and presentation of their products in Retail Stores make them prominent among their competitors. * They upgrade their products according to the changing environment keeping in view their customer’s need. For example, they launched shaving foams, dry shaving systems which are time efficient and easy to use. * They take maximum social responsibilities for environment and society. In this way, they contribute a lot to...
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...line with the strategic management process and why the process is needed. Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation (Wheelen & Hunger, 2008, p. 5). A strategic management plan primary components generally will include environmental scanning, strategy formulation, strategy implementation, and strategy evaluation. Environmental scanning helps a business identify current and future issues along with “monitoring, evaluating, and disseminating of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2008, p. 10). Strategy formulation is the most imperative portion of the plan mainly because it focuses on “effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses” (Wheelen & Hunger, 2008, p. 12). Management is a key component; without effective management theirs no one to implement, enforce and enhance the company. Managers also work with associated whom generally find the flaws that will ultimately help the business. Strategy implementation is “process by which strategies and policies are put into action through the development of programs, budgets, and procedures” (Wheelen & Hunger, 2008, p. 16). Having these items outlines and available it helps the company know they direction they are heading....
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...Yabyabin, Jed Cedric A. Reflection Paper: What Is Strategy? K36 What makes strategy different from operational effectiveness (OE)? Is OE necessary to effective strategy formulation and implementation? Why? Porter (1996) describes strategy as the creation of unique and valuable positioning that requires a set of different activities to make competitive trade-offs and strategic fit that creates competitive advantage and superior profitability. Operational effectiveness, on the other hand, refers to performing similar activities better than the rivals through benchmarking and incorporating best industry practices (Michael E. Porter, 1996). Porter (1996) discusses that strategy aims to position the company in performing different activities from its competitors or perform similar operational activities in different ways; whereas operational effectiveness presents how the company compares, acquires, and improves similar operational functions of its competitors. Although operational effectiveness may have its benefits of building efficiency and productivity, it is insufficient and unnecessary to the formulation and implementation of strategy. This is because it drives competitive convergence (Michael E. Porter, 1996) that makes the company homogenous to the other companies in the same playing field for incorporating same operational activities (despite making them “better”). With this, competitors can and may imitate certain management practices, technologies...
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