Strategic

Implementation and
Control
Strategic Management

Presentation By:
Mr. Gajendra Bahadur Thapa (Roll No.: 431)
Mr. Basanta Singh Dhami (Roll No.: 434)
Mr. Binod Adhikari (Roll No.: 443)
Section: ”D”
MBS 4th Semester

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Overviews
❖ Process of strategy Implementation
❖ Organization structures for strategy implementation
❖ Management system: leadership, motivation, and organizational culture
❖ Managing strategic change: diagnosing the change situation, change
management, levels of strategic change
❖ Strategy control: evaluation and control, measuring performance, appropriate
measures; Types of control: operational control and strategic control
❖ Characteristics of an effective evaluation and control

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Strategic
Implementation

Strategic implementation is
the act of translating chosen
strategy into action.

Strategic implementation is
the process of execution of the
selected strategy to achieve
strategy goals and objectives.

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Process of Strategic Implementation
Step:1 Step:2 Step:3
Evaluation and Development of Development of
communication of an implementation support policies
the strategic plan. structure. and programs.

Step:5 Step:4
Discharge of Budgeting and
Department and allocation of
activities. resources.

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Organization structure for
strategy implementation

➢ An organization is the group of people

working together in a coordinated effort to
attain a set of objectives.
➢ The strategy and organizational structure
for strategy implementation must have
close relationship like two-way traffic.

Following are some of the major type of

organizational structure for strategy
implementation:

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 Owner as
CEO/Manager

Finance and
Production Marketing
1. Simple Structure Department Department
Accountancy
Department

Advantages Disadvantages

a) Direct control a) No division of authority and responsibility

b) High motivations b) Ineffective for large size organization
c) Direct communication c) Difficult to manage HR effectively
d) Rapid decision making
e) Suitable for SMEs like restaurants.

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 CEO

Accounting R&D and

Production Marketing
2. Functional Structure Department Department
and Finance
Department
Engineering
Department

Advantages Disadvantages

a) Fixed authority and responsibility a) Coordination between the department is

b) Specialists in top and middle level difficult.
c) Simplified control/direct supervision b) Overburden of CEO/MD
d) Differentiates and delegates day-to-day c) Encourage Interdepartmental conflict
operating decisions d) Difficult to cope with diversity

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 Chief
Executive
officer

SBU (Product SBU (Product SBU (Product SBU (Product

SBU (Product E)
A) B) C) D)

Functions Functions Functions Functions Functions

3. Multi-Divisional Structure
Advantages Disadvantages

a) Facilitates the measurement of SBUs a) Increase coordination problem

performance
b) Focus on client needs
c) Facilitates top management attention to
strategy
d) Possibility of management development
b) Conflict between divisions
c) Costly
d) Increase difficulty of establishing
uniformity in company wide

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 Chief Executive
Officer

General Manager
General Manager General Manager
SBU C: Food &

4. Strategic Business Unit (SBU)

SBU A: Education SBU B: Hospital
Beverage

Structure MBA Cardiac Grocery

Nursing Paediatric Oil

Advantages Disadvantages
Engineering Maternity Noodles

a) Support cooperation between the
departments
b) Improvement of strategic management
c) Improvement of accounting operations
d) Easier planning of activities
a) Difficulty with contact with higher level of
management
b) May create of tension due to access of
fund
c) May be the slow transmission of
management activities

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 Parent
Company
Head Office

Company A Company B Company C

5. Holding Company Structure

(Wholly
(75% Owned) (51% Owned)
Owned)
Advantages Disadvantages

a) Low Central overheads a) Holding companies can come with

b) Offering of individual business losses
c) Holding companies protect the parent
company from losses by subsidiaries.
d) Parent companies can take advantage of
regional taxation laws by moving the
holding company and subsidiaries to
different jurisdictions.
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reduced transparency, making it harder
for investors and creditors to assess the
health of the enterprise.
b) Parent companies can abuse their
subsidiaries by forcing them to trade with
one another at non-market prices.
c) Parent companies can also force their
subsidiaries to appoint chosen directors
or change their policies.
 Chief
Executive
Officer

General General General

Manager Manager Manager
Project A Project B Project C

Administration Administration Administration

6. Project Based Structure
Finance Finance Finance

Advantages
Construction Marketing Construction

a) Low Central overheads
b) Offering of individual business losses
c) Holding companies protect the parent
company from losses by subsidiaries.
d) Parent companies can take advantage of
regional taxation laws by moving the
holding company and subsidiaries to
different jurisdictions.
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Disadvantages
a) Holding companies can come with
reduced transparency, making it harder
for investors and creditors to assess the
health of the enterprise.
b) Parent companies can abuse their
subsidiaries by forcing them to trade with
one another at non-market prices.
c) Parent companies can also force their
subsidiaries to appoint chosen directors
or change their policies.
7. Matrix Structure for
Multinational Company

Advantages

a) Very useful when the external

environment is complex and changeable
b) Improves the quality of decisions
Disadvantages
c) Direct communication
a) Time taken for decisions
d) Improve motivation and management
b) Unclear responsibility
development
c) Dilution of priorities
e) Maximum use of limited functional d) Possible conflict between separate
specialist operating systems

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 Team
B Team A
8. Team-based Structure
Team
Advantages
C
Disadvantages
a) Help to capitalize employees’ strengths a) Potential for conflict
and minimize their weaknesses. b) Under performing employees hide
b) Foster better communication behind team
c) Resolve problem quicker c) Some people are not team players
d) Comparatively low cost and time
e) Flexible and empowered workplace

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Management System:
Leadership, Motivation and Organization
Culture
Establishment of effective management system is required for successful
implementation of strategy. The management system require better leadership,
motivation and organization culture.
➢ Leadership- An ability of influencing people after developing organizational vision
and goal to achieve it.
➢ Motivation- A force that help to inspire employees to implement strategy through
planned way.
➢ Organization Culture- The combination of values, attitudes, beliefs and
expectations which foster fair practices to achieve
organization goal through strategy implementation.

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Managing Strategic Change
➢ Strategic change is the process of shifts in organization’s policies, target market,
mission or structure.
➢ It is related with restructuring of an organization’s strategic plan that is typically
performed to achieve objectives more effectively and efficiently.
➢ Peter Drucker was the first pioneer who coined the term ‘Age of Discontinuity’.
➢ The term ‘Age of Discontinuity’ refers to Globalization, Cultural Pluralism,
Knowledge Capital, and New Technologies etc.

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Process of Strategic Change

Step 1 Step 2 Step 3 Step 4

Understanding Diagnosing Managing Leadership and
types of strategic strategic change strategic change change agency
change needs process •Leading to change
•Adaption, •Study organizational •Change in structure, and the agencies are
Reconstruction, culture, responsive control mechanism, top, middle, lower
Evolution, Revolution group, prevailing law style, organizational managers and
and stakeholders routine, external
communication style, stakeholders
tactics

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Strategic Evaluation
➢ Strategic Evaluation is the assessment process to collect
performance about program, project, activities designed to
meet business goals and objectives.
Process
Step 1: Fixing benchmark of performance
Step 2: Measurement of performance
Step 3: Analyzing deviation
Characteristics
1. Economical
2. Reliability
3. Sustainability
4. Comparability
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5. Suitability
Strategic Control
➢ Strategic control is the process used to control the
formulation and implementation of strategic plans.
➢ Strategic control at the strategic level not only answers
the question ‘have we made the right strategic choices at
some time in the past?’ but also how well are we doing
now and how well will we be doing in the immediate
future for which reliable information is available?
Characteristics
1. Feedback
2. Economical
3. Result oriented
4. Beneficial
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5. Report deviations
Types of Strategic
Control

Types of
Strategic
Control

A. Operational B. Strategic
Control Control

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A. Operational
Control

➢ An Operational control systems are designed to

ensure that day-to-day actions are consistent with
established plans and objectives.
➢ Operational control systems ensure that activities
are consistent with established plans.
➢ Operational control is the process of managing
and controlling an organization's day-to-day
operations.
➢ It focuses on events in a recent period.

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Steps in Operational Control

1 2 3 4
Step 1: Establish Step 2: Measurement of Step 3: Compare with Step 4: Corrective
Performance Standard Actual Performance Standard and find Actions
•Tangible Standard (Profit, deviations
Cost, Revenue, Sale etc.)
•Intangible Standard
(Employee morale, Goodwill,
Manager competency)

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B. Strategic Control
➢ Strategic control is a management and business strategy process that
involves tracking and monitoring an organization's strategy as it is being
implemented.
➢ It involves detecting any problems or potential issues as early as possible
and taking corrective action.
➢ Strategic control is concerned with tracking the strategy as it is being
implemented, detecting problems or changes in the premises and making
necessary adjustments.

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 Study the assumptions

Premise Control taken at the time of

strategy formulation are
change or not.

Implementation Study the formulated

Types of Strategic Control

plans, programs and
projects are guiding
toward goal or not .

Control
Strategy Designed to monitor of
internal and external

Surveillance environment which might

bring threats.

A mechanism for a quick

Special Alert response and urgent

reassessment of the

Control strategy in the light of

sudden and unexpected
events.

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Any Queries

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 Thank You !

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