IVY CATHALINE M.

CALIG-ONAN CBM 130

BSBA-3A 10-11-22

M01: Strategy Implementation

Five management issues which greatly affects or are the most important factors to
consider in strategy implementation:

Establish annual objectives

When engaging in strategy implementation, the business must ensure that

several important objectives are accomplished, which begins with ensuring that annual
objectives are achieved. Annual objectives are desired milestones an organization
needs to achieve to ensure successful strategy implementation. Annual objectives are
essential for strategy implementation for five primary reasons: they represent the basis
for allocating resources, they are a primary mechanism for evaluating managers, they
enable effective monitoring of progress toward achieving long-term objectives, they
establish organizational, divisional, and departmental priorities, and lastly, they are
essential for keeping a strategic plan on track. Furthermore, Annual objectives assist
the organization in ensuring that long-term success occurs as the organization is able to
monitor the implementation and how it is progressing over a long-term basis.

Allocate resources

Resource allocation is the process of assigning and managing assets in a

manner that supports an organization's strategic planning goals. It involves balancing
competing needs and priorities, and determining the best course of action to maximize
the use of limited resources and get the best return on investment. It is a strategy
involving a company deciding where scarce resources should be used in the production
of goods and services. Resources include such things as labor, real estate, machinery,
tools and equipment, technology and natural resources, as well as financial resources,
such as money. Poor allocation of resources will have a knock-on impact on overall
performance that is why it is one of the very essential factors we must consider in
implementing a strategy. Without the right skills or knowledge on a project, efficiency,
time, confidence, and motivation can be lost along the way.

Alter an existing organizational structure

Organizational structure specifies the organizational formal reporting

relationships, procedures, authority, and decision-making processes. It determines and
specifies the decisions that are to be made and the work that is to be completed by
everyone within an organization as a result of those decisions. Organizational structure
helps firms successfully implement their strategies as a means of outperforming
competitors. Thus, after firms formulate their strategies, executives must make
designing organizational structure its next priority. Strategy, structure and the
environment need to be closely aligned. Otherwise, organizational performance will
suffer.

Develop a strategy-supportive culture

Developing organizational culture is an important part of strategic management.

No strategy succeeds without a strategy supportive organizational culture. A supportive
organizational culture provides the social and psychological conditions that optimize
employee health, safety, and well-being. This can involve supporting employees' growth
and development and intentionally building positive relationships between people, their
work, and their organization. Strategy supportive cultures engage and empower people
while creating affective commitment and organizational citizenship behaviors. It
provides support to the strategy and influences the success of strategy implementation.
 Adapt production/operations processes

Strategy in action means implementation requires complete transparent process.

Production/operations department that mainly concern with the achievement of
organization goals and targets. Production-concerned decisions on plant location,
plantsize, product design, choice of equipment, size of inventory, inventory control,
quality control, cost control, use of standards, shipping and packaging, and
technological innovation, job specialization, employee training, equipment and resource
utilization. All these factors place an important impact on success and failure of the
strategy. Thus, effectively and continuously managing production is key in realizing
efficiency gains and keeping the production process up to date. A well-designed and
executed manufacturing operation translates directly into increased profits, controlled
costs, and an improved bottom line.