Block 9

Question 1

Discuss strategy execution.

Answer 1

+It is operations driven and involves management of both people and business processes

+It is a job for the whole management team not just a few senior managers.

+Can take many years to develop as a real proficiency.

Question 2

What are 3 things strategy execution requires a determined commitment to?

Answer 2

+change

+Action

+Performance

Question 3

What is an often cause for strategy failure?

Answer 3

+Poor execution

Question 4

What does strategy commitment entail?

Answer 4

+Figuring out the specific technique, actions and behaviours necessary for a smooth strategy-supportive operation.

+Following through to get things done and deliver results.

+having the leadership skills present to make things happen.

+Having the managements skills present to make things happen in the right way.

+Requires a team effort from both the management and employees.

Question 5

What ae the 10 basic tasks of the strategy execution process?

Answer 5

1.Staff the organisation with the right people for execution

2.Develop the resources and capabilities required for successful strategy execution

3.Establish a strategy supportive organisational structure

4.Allocation of sufficient resources to the execution effort

5.Institute policies and procedures that facilitate strategy execution

6.Adopt business management processes that drive continues improvement

7.Install information and operation systems that support execution activities

8.Tie rewards to achieving objectives

9.Foster a corporate culture that promotes good execution

10.Exercise leadership needed to propel strategy execution forward

Question 6

What are 3 key actions in building an organisation capable of good strategy execution?

Answer 6

1Staffing: -Staffing the organisation.

2.R and C: - acquiring, developing and strengthening key resources and capabilities.

3.Structuring: -Structuring the organisation and work effort

Question 7

What are the 2 components of staffing?

Answer 7

1.Put together a strong management team

2.Recruiting and retaining talented employees

Question 8

What are the 3 kinds of people needed for a strong management team?

Answer 8

1.Planners: - They ask tough questions and figure out what needs to be done

2. Implementors: - They help select management lead the right people

3.Executors: - They turn decisions into actions that drive changes and produce sustainable competitive advantage

Question 9

What are the 8 good practices to follow when recruiting training and retaining capable employees?

Answer 9

1.Intensive screening and evaluation of applicants to ensure selection of the best suited and best fitted

2.Provide training programs throughout employee careers

3.Offer challenging, interesting and skill stretching assignments

4.Rotate people through jobs that span functional and geographical boundaries

5.Make the work environment stimulating and engaging so that the firm is considered a good workplace

6.Encourage employees to propose creative ways of operating better and to push ideas for new products or businesses

7.Retain employees by using assorted financial incentives and perks

8.Coach average performers to improve their skills and capabilities while weeding out underperformers

Question 10

What are the 3 components of R and C?

Answer 10

+Developing a set of resources and capabilities suited to the current strategy.
+Updating resources and capabilities as external conditions and the firm’s strategy change

+Training and retaining company personal to maintain knowledge-based and skill-based capabilities

Question 11

What is capabilities?

Answer 11

+They are bundles of skills and knowhow that integrated into organisational routines and are deployed within activity systems through the combined effort of teams.

Question 12

What needs to be done with capabilities I the long run?

Answer 12

+Continually renewed and refreshed to reman aligned to customer expectations and competitive positions.

Question 13

What are 3 approaches to building and strengthening capabilities?

Answer 13

1-Developing organisational capabilities internally

2-Aquiring capabilities through mergers and acquisitions

3-Access capabilities through collaboration partnerships

Question 14

How to develop organisational capabilities internally?

Answer 14

1.Strenghten the firms base of skills knowledge and intellect

2.Coordenate and integrate the efforts of work groups and departments

Question 15

What questions should be asked before acquiring capabilities through mergers and acquisitions?

Answer 15

1.A question of market opportunity: - When a market opportunity can slip by faster than needed capabilities can be created.

2.A question of competitive necessity: -When industry conditions, technology or competitors are moving at such a rapid pace that time is of the essence.

3.A question of successful integration: -Tacit knowledge and complex routines may not transfer readily from one organisational unit to another, check for internal fit.

Question 16

When assessing capabilities through collaborative partnerships what are the 3 approaches to acquiring capabilities from external sources?

Answer 16

1.Collaberate with a firm that has complementary resources and capabilities

2.Outsource the function requiring the capabilities to a key supplier or another provider

3.engage in a collaborative partnership for the purpose of learning how the partner does things

Question 17

When is training important?

Answer 17

+when executing a strategy that requires different skills, competitive capabilities and operating methods.

+Organisational efforts to build skill-based competencies.

+Supplying technical know how to employees when rapidly changing technology puts a firm in danger of losing its ability to compete.

Question 18

When is superior strategy execution possible?

Answer 18

+When capabilities maximise organisational resources and the capabilities support the business model.

+When capabilities are difficult to imitate and socially complex process that take a long time to develop.

+When capabilities enable a firm to react more quickly to market changes, beat competitors to market with new products and services or lastly gain an uncontested market dominance.

Question 19

What are the 3 components of structuring?

Answer 19

+Institute organisational arrangements that facilitate good strategy execution.

+Establishing lines of authority and reporting relationships

+Deciding how much decision-making authority to delegate.

Question 20

What are the 4 steps that can be followed when structuring the work effort to promote successful strategy execution.

Answer 20

1-Decide which value chain activities to perform internally and which ones to outsource

2-Align the organisational structure with the strategy

3.Decide how much authority to centralize at the top and how much to delegate down the line

4- Facilitate collaboration with external partners and strategic allies.

Question 21

When deciding which activities to outsource what are 3 benefits to outsourcing?

Answer 21

+It flattens the structure, speeds up decision making and shortens the response time to changing market conditions.

+It adds to a firm’s capabilities and contributes to better strategy execution through partnerships with suppliers and channel partners.

+Helps in outperforming rivals in strategy critical activities and in turning a competence into a distinctive competence.

Question 22

What is the definition of organisational structure?

Answer 22

+Comprises of the formal and informal arrangement of tasks, responsibilities, lines authority and reporting relationships of the firm.

Question 23

For step 2: aligning the firm’s organisational structure with its strategy, when is structure and strategy aligned?

Answer 23

+when its design contributes to the creation of the value for customers.

+its parts are aligned with one another and matched to the requirements of strategy.

+When it lowers operating costs through lower bureaucratic costs and operational efficiencies.

Question 24

What are some things to consider when discussing the relationship between structure and strategy?

Answer 24

+It’s a reciprocal relationship, meaning a change to one affect the other.

+No one structure is a fit all scenario structure.

+Good strategy-structure fit can lead to competitive advantage and above average returns.

Question 25

What are the 3 strategy execution requirements that need to be considered when choosing a structure?

Answer 25

1.Chosen strategy

2. capabilities and competencies

3.Centralised or decentralised control

Question 26

What are the 4 commonly used structures?

Answer 26

1.Simple structure- Consists of a central executive who handles all major decisions and oversees all operations

2.Functional Structure-Organized into functional departmental managers who report to a ceo

3.Multidimensional Structure-Decentralised structure consisting of a set of operating divisions organised along products customers and geographical lines

4.Matrix structure-A combination that overlays one structure onto another with multiple reporting structures

Question 27

What are 3 things a structure must do to match a strategy?

Answer 27

+Supplement design with appropriate coordinating mechanisms

+Institute collaborative networking and communication arrangements

+consider the environment.

Question 28

What are the 2 organisational approaches to decision making?

Answer 28

1.Centralized decision making-Authority is retained by top management

2Decentralized decision making-Authority is delegated to lower-level managers and employees.

Question 29

What are 3 beliefs/tenets centralised organisational structures have?

Answer 29

+Decisions on most matters of importance should be in the hands of top-level managers who have the experience, expertise and judgement to decide what is the best course of action.

+Lower-level personnel have neither the knowledge, time nor inclination to properly manage the tasks they perform.

+Strong control from the top is a more efficient means for coordinating company actions.

Question 30

What are 3 beliefs/tenets decentralized organisational structures have?

Answer 30

+Decision making authority should be put in the hands of the people closest to and most familiar with the situation.

+Those with decision making authority should be trained to exercise good judgement.

+A company that draws on the combined intellectual capital of all its employees can outperform a command-and-control company.

Question 31

What are 4 advantages to centralised organisational structures?

Answer 31

+Fixes accountability through tight control from top

+Eliminates potential for conflicting goals and actions on the part of lower-level managers.

+Facilitates quick decision making and strong leadership in crisis situations.

+Changes in strategic perspective are more easily facilitated.

Question 32

What are 5 advantages to decentralised organisational structures?

Answer 32

+Encourages company employees to exercise initiative and act responsibly.
+Promotes greater motivation and involvement in the business on the part of more company personnel.

+Spurs new ideas and creative thinking

+Allows for fast response to market change.

+Entails fewer layers of management.

Question 33

What are 3 disadvantages to centralised organisational structures?

Answer 33

+Lengthens response times by those closest to the market conditions bc they need to seek approval first.
+Does not encourage responsibility among lower-level managers and rank and file employees.

+discourages lower-level managers and employees from exercising initiative.

Question 34

What are 3 disadvantages to decentralised organisational structures?

Answer 34

+ May result in higher level managers being unaware of actions taken by empowered personnel under supervision.
+Can lead to inconsistent or conflicting approaches by different managers and employees.

+ Can impair cross unit collaboration.

Question 35

How can collaboration with external partners and strategic allies be facilitated?

Answer 35

+Through the use of relationship managers to build and maintain cooperative arrangements of value for both parties.

Question 36

What are the 4 types of external partners and strategic allies?

Answer 36

1.Strategic alliances: -Non equity collaborative agreements between two organisations working towards a common goal

2.Outsourcing arrangements: -Contract between the company or any of its subsidiaries and a third party to which the third party provides services or support

3.Joint ventures: -Equity mode of entry establishing a new legal entity

4.Cooperative partnerships: -collaborative partnerships are agreements and actions made by consenting organisations to share resources to accomplish a shared goal.