CHAPTER 11

STRATEGY IMPLEMENTATION: BUSINESS AND FUNCTIONAL LEVEL STRATEGY

The implementation of the business and functional level strategies is made possible through the
preparation of:

1. Programs – activities needed to achieve objective

2. Budgets – expected revenue and cost of Program
3. Procedures – steps to accomplish the program

Program steps:

1. Define the business or functional objective

 is vertically consistent with corporate objective,
 then horizontally consistent with other B or F objectives
 Must be SMART ( specific, measurable, attainable, realistic, time-bound)
2. Set the Key Performance Indicator or KPI
 Information collected is commonly used in strategy evaluation and control

Broad classification of KPI

 Increased customer value

 Improved production processes
 Reduced manufacturing cost
 Increased sales revenue

3. Identify the people involved, dates for program review, and completion time
 People ( with necessary knowledge, skills, competency) who will execute the strategic activities
 Dated for conducting reviews about the progress of the activities
 Expected completion time of each activity which matches the specified time in objective

4. Prepare the program report

 At the end
 Must not fail to include the objective of the program and significant actions taken
 Includes the information about expected business risk, problems encountered, hindrances and
limitations

After being finalized, the program is communicated to all members of business and functional units

Budgets
- a plan expressed in quantitative, monetary value
- includes revenue and expenditure budget
- company resources are taken into account
- may serve as control mechanism in strategy formulation

Procedures
- “standard operating procedures” or SOP
- step-by-step process to be carried out to achieve the completion of the program
 simple-step format – uses simple sentences in listing down the procedures to accomplish the
program
 hierarchical format – when there long procedures involved which contains several substeps
 flowchart format – there are infinite steps to be carried out where results may be unpredictable