Dept of Strategic

Management

Dr Rajesh Tripathi
MA Englit, MBA, NET , PhD in Strategic Management (MNNIT),
Total professional experience 14 years
Teaching experience 9 years
Area of interest
• Strategic Management
• IPR
• Technology Management
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Strategic Execution

Centre for
Continuing Education
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Learning Objectives
Understanding of:
• the elements of the Strategic Execution
• Steps of execution
• Functions and procedures
• methods that organizations can use to influence
stakeholders in the task environment.

• Centre
3 for
Continuing Education
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Common Implementation Problems

More time than planned

Unanticipated problems
Activities ineffectively coordinated
Problems in Employees w/o capabilities
Implementing Inadequate employee training
Strategic plans Uncontrollable external factors
Inadequate leadership
Poorly defined tasks
Inadequate information systems
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Programs – Defining Activities

– Purpose is to define activities and to make the
strategy action oriented
– One way to examine the likely impact of new
programs and activities will have on the
organization is the Matrix of Change.
– It compares proposed and existing programs
and activities and can be used to address the
following types of questions:
• How quick change should proceed?
• In what order change should take place?
• Is the proposed system stable and coherent?
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Budgets – Allocate funds to the new activities

– Define how much implementation will cost.
– The budget is the last real check a firm has
on the feasibility of the selected strategy.

Procedures – Handle the day-to-day details

– Standard Operating Procedures (SOP’s) detail
the various activities that must be carried out to
complete a corporation’s programs
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Achieving Synergy – between and among

functions and business units should
permeate the implementation process.
– It occurs if ROI is greater than what it would be if
division was an independent business.

Synergy takes place in one of the six forms:

1. Shared know-how
2. Coordinated strategies
3. Shared tangible resources
4. Economies of scale or scope
5. Pooled negotiating power
6. New business creation
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Structure follows strategy view–

Changes in corporate strategy lead to
changes in org. structure as follows:

– New strategy is created

– New administrative problems emerge
– Economic performance declines
– New appropriate structure is invented
– Profit returns to previous level
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Stage I: Simple Structure (Entrepreneur)

Flexible and dynamic
Decision making tightly controlled
Little formal structure
Planning short range/reactive

Stage II: Functional Structure

Functional specialization
Delegation of decision making
Concentration/specialization in industry

Stage III: Divisional Structure (SBU)

Diverse product lines
Decentralized decision making

Stage IV: Beyond SBU’s: Matrix, Network, and Cellular

Increasing environmental uncertainty & Tech advances
More emphasis on Teams
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Advanced Types of Organizational Structures –

1) Matrix Structure – Combine division with function form.
– Cross-functional task forces / teams
– Employees with two superiors (Boeing, TRW Sytems)
2) Network Structure or “non structure” (virtual organization)
– Elimination of in-house business functions - OUTSOURCING
– Useful in unstable environments when there is need for
innovation and quick responses . For eg. Asea Brown Boveri,
Reebok, Nike
3) Cellular Organization: New type composed of “cells”
– Includes dispersed entrepreneurship from DIVISIONAL,
customer responsiveness of the MATRIX, and self-organizing
knowledge and asset-sharing of the NETWORK
– Self-managing / autonomous teams and business units
– Modular
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Organization Life Cycle Approach (Instead of

Stage of Development approach)
Describes how organization grows, develop
and eventually declines

Impact of each stage on strategy and structure

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Designing Jobs to Implement Strategies

• Making jobs more relevant to the company
and employees serves as a source of
competitive advantage

• Job Design Techniques:

1. Job enlargement: Combining tasks
2. Job rotation: Increase variety of tasks
3. Job enrichment: More autonomy and control to
workers
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International Development Stages–

– Domestic company
– Domestic company w/export division
– Domestic company w/int’l division
– MNC w/ multidomestic emphasis
– MNC w/global emphasis
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Thank You

Centre for
Continuing Education