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Department of Business Administration

Faculty of Management Studies & Research (FMS&R)
Aligarh Muslim University, Aligarh

BUSINESS POLICY
&
STRATEGIC MANAGEMENT
(UNIT-IV)
Dr. Saboohi Nasim

(saboohinasim@gmail.com)
FMS&R, AMU

SYLLABUS

Strategy Implementation: Nature,

Barrier, Linkages and Model

Project & Procedural Implementation

Structural Implementation

Behavioral Implementation

Strategy Implementation
concerns the managerial
exercise of putting a
freshly chosen strategy
into place
(Thompson & Stickland, 2003)

What Does Strategy Implementation

Involve?
Building an organization capable of realizing its intent
Allocating resources to strategy-critical activities
Establishing strategy-supportive policies
Instituting best practices and programs for
continuous improvement
Installing information, communication, and operating
systems
Motivating people to pursue the target objectives
Tying rewards to achievement of results
Creating a strategy-supportive corporate culture
Exerting the leadership necessary to drive the process
forward and keep improving
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Nature of Strategy Implementation

Action Orientation: involves putting formulated strategies into action
thru management processes.

Comprehensiveness in Scope: covers a wide range of functions

and activities

Demanding Varied Skills: requires a wide range of knowledge,

skills, attitudes, and abilities

Wide Ranging Involvement : necessitates the involvement of

managers at all levels; especially middle managers

Integrated Process: Tasks/activity performed are related and interlinked

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Barriers to Strategy Implementation

Strategy Implementation is much more difficult than Strategy
formulation
Eight out of ten companies fail to deploy their strategies
effectively
Obstacles to Strategy Implementation (Hrebiniak, 2006)

Inability to manage change

Poor or Vague strategy
Lack of guidelines/model for implementation
Poor or inadequate information sharing
Unclear responsibility & accountability
Working against the organizational power structure

Overcoming barriers requires:

Adopting a clear model of Strategy Implementation
Effective management of change in complex situations

Interrelationship of Formulation and

Implementation

Strategy Formulation and Implementation processes are

intertwined
Two types of linkages exists between these two phases
Forward Linkages
Backward Linkages

Two way linkage between Formulation and Implementation of Strategy

Strategy
Formulation

Strategy
Implementation

(Thought)

(Action)

Mintzbergs Conception of Types of Strategy

Implemented
Strategy
Formulated
Strategy

Unrealized
Strategy

Emergent
Strategy

Realized
Strategy

Formulation & Implementation of strategies

operate in an iterative manner where both feed upon each
other in a two-way relationship

STRATEGY IMPLEMENTATION
MODEL
NIEL Case

STRATEGY IMPLEMENTATION MODEL

ACTIVATING
STRATEGIES

Strategic
Plan

Project &
Procedural
Implementation
Resource
allocation

MANAGING
CHANGE

Structural
Implementation
Behavioral
Implementation
Leadership
Implementation

FEEDBACK

ACHIEVING
EFFECTIVENESS

Functional
&
Operational
Implementa
tion

Evaluation
&
Control

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Major Themes in Strategy Implementation

ACTIVATING STRATEGIES: prepares the ground for
managerial tasks and activities; Includes three set of activities
Project implementation
Procedural implementation
Resource Allocation

MANAGING CHANGE: core of Strategy implementation;

Includes three set of activities
Structural implementation
Leadership implementation
Behavioral implementation

ACHIEVING EFFECTIVENESS:

last theme in strategy

implementation; deals with the outcome of the process; includes functional and

operational implementation
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Major Themes in Strategy Implementation

ACTIVATING STRATEGIES: The Pyramid of Strategy Activation

Strategy

Plans
Programs
Projects

Budgets

Policies, Procedures,
Rules & Regulations
Operating Strategies
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Major Themes in Strategy Implementation

MANAGING CHANGE:
Strategy Implementation almost always necessitates
change; Change management an essential requirement for
successful SI
MOC requires an understanding of the process of change;
Innovation and learning part of change process
Issues in MOC
Degree of Change (How much?): Radical Vs.
Incremental
Timing of Change (When?): Reactive Vs. Anticipatory
Activity Areas of Change (Where?): Structure,
Leadership, Behavior
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Major Themes in Strategy Implementation

ACHIEVING EFFECTIVENESS
Degree to which an organization is able to
achieve its objectives
Four Models of Organizational Effectiveness
The Goal Model: profitability, growth, market share
Resource Based Model: Ability of the orgn. to
obtain resources

Internal Process Model: Culture, Climate, Team

work, Communication..

Conflicting Value Model: diverse indicators of

performance..
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Strategy Implementation is
invariably
Managing Change
Linking Strategy with People
and Operations
and
Conducting Regular Reviews
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PROJECT IMPLEMENTATION
Madura Garments Case

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Project Implementation

A project is a basic unit of a program; a

temporary endeavor to achieve a particular
aim: factory expansion, product development, BPO
Projects are chosen as vehicles of SI
Project management-a key enabler of
strategy implementation
Co.s adopt a structured approach to PM in
line with its business strategies
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Project Implementation..
Strategy Implementation Through Project Management

Strategy Management Process

Strategy Implementation

Strategy Evaluation & Control

Project
Objectives

Initiating

Planning

Control
Measures
Executing

Controlling

Project Management Process

Closing

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PROCEDURAL IMPLEMENTATION

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Regulatory Mechanisms in India

Formation of Company
Licensing Procedures
SEBIs Requirements
MRTP Requirements
Foreign Collaboration Procedures
Import Export Requirements
Labor Legislation Requirements
Environmental control and Pollution Control
Requirements
Procedures for Availing Incentives&
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RESOURCE ALLOCATION

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REOURCE ALLOCATION(RA)
Deals with procurement, commitment, and distribution of
financial, human, informational and physical resources to
strategic tasks for the achievement of objectives.
Budget: main instrument of RA; a common technique used
as planning, coordination and control device in
management

Three approaches to RA thru budgeting:

Top Down Approach: process of segregation; Entrepreneurial
mode of SI

Bottom Up Approach: process of aggregation; Participative mode

of SI

Strategic Budgeting: Mix of these two modes; iterative form of

decision making

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Making of a Strategic Budget

Budgeting Process

Levels of management
Top level

Corporate
Policy
Guidelines

Desired
goals

Resource
Availability

Approval
& sanction

Strategic
Budget
Minimizing gaps
Executive level

Operating level

Position papers

Proposals

(e.g environment,
Core competencies
Marketing,
past performance)

Tasks/Operational
Plans

Implementation
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Issues in REOURCE ALLOCATION

Aligning Resource Allocation to Strategy
Dangers of misallocation
Involves trade-offs

Factors Affecting Resource Allocation

Objectives of the Organization

Preference of Dominant Strategists
Internal Politics
External Influences

Difficulties in Resource Allocation

Scarcity of resources
Restrictions on generating Resources
Overstatement of Needs
Tendency to Imitate Competitors
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