Professional Documents
Culture Documents
Strategies:
Marketing,
Finance/Accounting,
R&D, and MIS Issues
Chapter 6
Stages of Strategic Management
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8-3
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Strategy Implementation
Strategy Implementation:
Sum total of the activities and choices
required for the execution of a strategic plan.
4
Strategy Implementation
Strategy implementation
requires a firm to establish annual objectives,
create policies, motivate employees, and
allocate resources so that formulated
strategies can be implemented.
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Resources and Competencies
Annual objectives
short-term objectives that organizations must
achieve to reach long-term objectives.
should be measurable, quantitative,
challenging, realistic, consistent, and
prioritized.
should be established at the corporate,
divisional, and functional levels in a large
organization.
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Annual Objectives
Policies
the means by which annual objectives will be
achieved.
include guidelines, rules, and procedures
established to support efforts to achieve
stated objectives
tool for strategy implementation.
clarify what can and cannot be done in pursuit
of an organization’s objectives.
1-11
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Resource Allocation
Resource allocation
Central management activity that allows for
strategy implementation.
7-12
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Types of Resources
7-13
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Strategy Implementation Actions
8-15
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Current Marketing Issues
8-16
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Market Segmentation
Market Segmentation
Subdividing of a market into different
divisions of customers according to needs
and buying habits
widely used in implementing strategies.
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Acquiring Capital to
Implement Strategies
8-19
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Financial Budgets
Financial budget :
a document that details how funds will be
obtained and spent for a specified period of
time.
include, operating budgets, sales budgets,
profit budgets, capital budgets, expense
budgets, divisional budgets.
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R&D Approaches for
Implementing Strategies
Be the first firm to market new technological
products.
Be an innovative successful products, thus
minimizing the risks and costs of start-up.
Be a low-cost producer by mass-producing
products similar to but less expensive than
products recently introduced.
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Management Information
Systems (MIS) Issues
Having an effective management
information system (MIS) may be the most
important factor in differentiating successful
from unsuccessful firms.
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Examples of Organizational Systems