Chap 10 Flashcards
Refers to activities or processes, which ensure that comprehensive plans formulated at the three levels of management are efficiently executed to achieve the goals and objectives of a company
Strategy implementation
Exist because of the adapted formal structure, which is reflected in an organizational chart
Formal relationships
Created because of informal groups, existing and operating in a company
Informal relationships
Exists when there are only few or no layers of management between the managers and employees
Flat structure
A company is divided into small units with specific functions, such as marketing finance, human resources in production and operations
Functional structure
Business activities are divided, according to market, product, service or region
Divisional structure
Hybrid of the functional and divisional structures
Matrix structure
A tool that collects and uses information to assist management in monitoring and reviewing the activities and performances of different functional units to see if they are directed toward the attainment of goals and objectives of a company
Management control system
Greatly influences the degree and seriousness of strategic management implementation
Leadership style
Motivates employees to perform outstandingly. It provides job security and opportunities for a career advancement.
Reward and career system
Refers to the relationships among shareholders, the Board of Directors, and the management in terms of functions, rules, responsibilities, and accountabilities
Corporate governance
Owners of a corporation
Shareholders
Implemented by the top level management
Crafted corporate level strategy
Cover the overall direction of an entire company
VMGOSP crafted at the Corporate Level
Defines what it wants to achieve in the future. It answers the question “What does the business want to become?”
Vision
Describes what a company should do to meet its vision. It defines the purpose of the existence of a company and answers the question, “what is our business now?”
Mission
Covers a wider range of customers to serve or several product lines offer
Broad mission statement
This mission statement is most appropriate in an unstable industry where companies should focus on what they do best
Narrow mission statement
Intends to include all stakeholders, but does not identify whose interests shall be given at most importance
Broad mission statement
The action words of the vision and mission
Goals and objectives
Broad statement on how to achieve the vision of a company
Goals
Specific end results that a company wants to achieve within a specified timeframe
Objectives
A plan formulated to effectively achieve a company’s mission and objectives
Strategy
Internal broad guidelines intended to support the formulation of a strategy
Policies
Backbone of the vision and mission statements
Corporate level strategy
Overall direction of a company
Vision
Purpose of a company’s existence
Mission
Broad results to accomplish
Goals
Specific results to achieve
Objectives
Plans to achieve the goals and objectives
Strategy
Broad guidelines to support the strategy
Policies
Types of business organization
Sole proprietorship
Partnership
Corporation
Business organization may engage in:
Merchandising
Service
Manufacturing
Elements that influence the ability of a business organization to divide and coordinate its various activities:
Patterns of relationship
Management control system
Leadership style
Reward and career system
Corporate governance
A Corporate Level strategy is implemented through the formulation of the following
Vision and mission
Goals and objectives
Strategy and policies
Key aspects of strategy implementation at the Corporate Level:
Structural alignment
Resource allocation
Leadership and culture
Performance management
Communication training
Strategic control system
Organizational learning
Risk management
Crucial in developing plans or strategies to be executed in a certain level
Structural alignment
Support strategic objectives of an entity. Strategize what investments should be prioritized
Resource allocation
Blood of the business
Financial resources
Involves instilling various norms that encourage behaviors and attitudes distance with strategic objectives. The effectiveness in leading the organization, human resources, and people. Cultivate organization structure that supports the strategy.
Leadership and culture
Must communicate strategies and inspire commitment
Leaders
Regularly monitor and evaluate the performance using or based on KPI
Performance management
Metric that will track the progress toward strategic goals
Key performance indicator, or KPI
Ensure all employees understand the strategy
Communication
Provide training programs to enhance employees skills
Training
Establish control mechanics to monitor division from strategic plans. Implement corrective actions that are necessary to strategies implemented
Strategic control system
Foster a culture of continuous learning
Organizational learning
Identifying and assessing potential risks that can impact successful implementation of strategy.
Develop contingency plans and risk mitigation strategies
Risk management
