Topic 1: STRATEGY IMPLEMENTATION AND CONTROL

Question 1

Strategy implementation

Answer 1

is an action-oriented, operations-driven activity aimed at shaping performance of core business activities in a strategy-supportive manner.

It is tougher and more time-
consuming than crafting strategy.

Question 2

The key tasks of strategy implementation

Answer 2

• Improving efficiency of the strategy being executed.

• Showing measurable progress in achieving targeted results.

Question 3

Strategy implementation includes:

Answer 3

• Building a capable organization.

• Allocating resources to strategy-critical activities.

• Establishing strategy-supportive policies.

• Instituting best practices and programmes for continuous improvement.

• Installing information, communication, and operating systems.

• Motivating people to pursue the target objectives.

• Tying rewards to achievement of results.

• Creating a strategy-supportive corporate culture.

• Exerting the leadership necessary to drive the process forward and keep improving.

Question 4

Good strategy execution Involves creating strong “fits” between the strategy and:

Answer 4

• Organisational capabilities.

• The reward structure of the organisation.

• The internal operating systems.

• The Organisation’s work climate and culture.

Answer 5

The stronger these “fits” the better the execution and the higher a company’s odds of achieving its
performance targets. Strategy implementation is the process that turns strategic plans into a series of
action tasks, and ensures that these tasks are executed in such a way that the objectives of the
strategic plan are achieved.
Strategy implementation differs from strategy formulation in several ways. Firstly, strategy
formulation is the intellectual or thinking phase, whilst implementation is the phase where these
thoughts are operationalised and turned into action. Secondly, is mostly a market-driven activity with
an external focus, whereas strategy implementation is an internal, operations-driven activity? Another
difference between these two phases is evident in the required skills: strategy formulation requires
good intuitive and analytical skills, whilst strategy implementation requires motivation and leadership
skills.

Question 6

CRAFTING THE STRATEGY

Answer 6

Primarily a market-driven activity.
Successful strategy making depends on
• Business vision
• Perceptive analysis of market conditions
and company capabilities
• Attracting and pleasing
customers
• Outcompeting rivals
• Using company capabilities
to forge a competitive advantage

Question 7

EXECUTING THE STRATEGY

Answer 7

Primarily an operations-driven
Activity. Successful strategy execution
depends on
• Doing a good job of working
through others
• Good organisation-building
• Building competitive capabilities
• Creating a strategy supportive
culture
• Getting things done and delivering good
results

Question 8

STRATEGY FORMULATION

Answer 8

1. Positioning forces before the action.
2. Focuses on effectiveness
3. Primarily an intellectual process
4. Requires good intuitive and analytical skills
5. Requires coordination among a few individuals

Question 9

STRATEGY IMPLEMENTATION

Answer 9

1. Managing forces during the action.
2. Focuses on efficiency.
3. Primarily an operational process.
4. Requires motivation and leadership skills.
5. Requires coordination among many persons.

Answer 10

Organisations often experience problems when attempting to implement their chosen strategy or
strategies. Such problems include:
• Ineffective coordination of implementation efforts.
• Inadequate leadership and direction provided by managers
• Goals not sufficiently defined; goals not well understood by employees
• Formulators of strategy not involved in the implementation
• Changes in responsibilities of employees not clearly defined.