3.10.3

Question 1

the strategic planning process

Answer 1

1. identify business aims and long-term goals and mission
2. external and internal analysis (SWOT) (PESTLE C) - core competencies and 5 forces
3. set objectives
4. formulae strategy - Ansoff, porter, bowman
5. implement strategy
6. evaluate success - financial, CSR, triple bottom line, balanced scorecard

Question 2

importance of leadership

Answer 2

set the vision
motivate the workforce to implement the strategy
keep the business on course to achieve the strategy and realign tactics if it drifts from the strategy
assess progress and performance ensure success is recognised
adjust the strategy or
implementation if it is not working

Question 3

stages of implementing a strategy effectively

Answer 3

1. Communicate the strategy to employees.
2. Identify key personnel to implement the strategy and delegate responsibility.
3. Ensure resources are made available to implement the strategy - for example, budgets allocated, training given.
4. Set measurable steps with appropriate deadlines.
5. Put in place systems key performance indicators (NPls) to measure progress.
6. Identify and celebrate quick wins along the way.
7. Regroup, assess and if necessary adjust strategy.

Question 4

importance of communication

Answer 4

Communication is vital if business strategy is to be implemented successfully. Effective communication will ensure that all employees understand what they should be doing and why they are doing it. If employees share the vision for the business they are more likely to be successful. It is important that employees understand the part they play in strategic implementation and where they are at along the process of implementation.

Question 5

factors to consider when designing an organisation structure to implement a strategy

Answer 5

What span of control is appropriate?
How many levels of management are appropriate?
What specialist roles will be required - for example, are specific managers with specific remits required?
Should decisions be centralised or decentralised?
What teams and mix of skills will be required to implement the strategy?

Question 6

functional structure

Answer 6

clear focus on roles and shared expertise
employees can identify with function rather than the business as a whole

Question 7

product structure

Answer 7

A structure based around specific products and therefore specific customer needs. Cross function teams are deployed who have specific skills and knowledge of operating in one product area.

Question 8

regional structure

Answer 8

Appropriate for global businesses where regional conditions vary such as language, social trends and attitudes, economic climate and political systems.

Question 9

matrix structure

Answer 9

Employees are line managed by two managers from different areas, such as function and product/region. Frequent movement between teams and flexible working practices.

Question 10

how to choose the most appropriate structure

Answer 10

formality and control
the variety and complexity of the product range
the global regions the business
operates in.

Question 11

when would it not be appropriate for a formal structure to be imposed

Answer 11

for example, where creativity and flexibility are paramount or where the business is starting up.

Question 12

EST =

Answer 12

EST of previous activity + duration of the activity
left to right

Question 13

LFT =

Answer 13

previous LFT - activity duration
right to left
- deduct largest number

Question 14

float time =

Answer 14

LFT - duration - EST

Question 15

what is the float time

Answer 15

The float time of an activity is any slack by which an activity can overrun. Float time is important for identifying which activities have flexibility.

Question 16

what is the critical path

Answer 16

The critical path is the route through the network diagram where there is no float time.
These activities are critical because, if they overrun, the expected duration of the project will be extended.

Question 17

benefits of network analysis

Answer 17

identify the exact activities involved in implementing a strategy
effectively plan for the implementation of a
strategy
introduce informed deadlines for different activities
allocate resources efficiently to the different activities
identify float time and those activities that are critical to the success/implementation of the strategy.

Question 18

limitations of network analysis

Answer 18

Projects and strategies often involve multiple factors, agents and stakeholders - calculating the time taken to complete an activity can be very difficult.
It does not take into account qualitative issues such as employee morale or relationships between workers.
It relies on estimations. If these are correct so are the ESTs and LFTs. Strategies will not be implemented on time if this is incorrect.
It does not take into account unexpected events and significant external factors beyond the business’s control, such as key staff on long-term absence.