TOPIC 4 – THE INSTRUMENTS OF STRATEGY IMPLEMENTATION

Question 1

TOPIC 4 – THE INSTRUMENTS OF STRATEGY IMPLEMENTATION - Question 1 -

Comment on the role of the various instruments in strategy implementation.(10) [B2.4-Jun14 + B2.4-Nov13 + B2.3-Nov12 + A4-Nov11]
Jun09+SG-p116]

Answer 1

(1) short term objectives,
(2) functional tactics
(3) policies.

1. The role of short term goals in strategy implementation.
   - a valuable strategy implementation instrument.
   - helps establish departmental, divisional and organisational priorities.
   - It assists in monitoring progress made towards achievement of long term goals.
   - can be used as checkpoints for operational and strategic control.
2. The role of functional tactics in strategy implementation
   –clarify the business strategy,
   –provide specific, short term guidance to managers and employees.
   –are the key routine activities that need to be performed in each functional area in order to achieve the objectives of the org.
   –??Functional areas in the organisation include marketing, human resources, research and development, finance, public relations and operations.
   
3. The role of policies in strategy implementation
   Policies are specific guidelines, methods, procedures, rules, forms and administrative practices that direct the actions of managers and employees in the organisation.
   -In order to be a valuable , policies should support the chosen strategies.
   -Policies inform employees/ managers what is expected of them in strategy implementation.
   -Policies need to support a chosen strategy, and change in strategy may require a change in policy.
   -Policies guide day-to-day activities and procedures that ensure successful strategy implementation.
   -Policies provide a basis for control and promote coordination and consistency across organisational units in strategy implementation.

Question 2

Question 2 - Explain how long-term goals are translated into short-term goals.(5)

Answer 2

1. Long-term goals are derived from the mission statement, which is in turn derived from the organizations vision or strategic intent.
   
   2. The short-term goals are set on the basis of the long-term goals to ensure that the mission and strategic intent become a reality.
   3. Aligning short-term goals with the organizations mission and strategy confirms that the strategic management process is interrelated and that a change in one component will trigger changes in others.
   4. An organisation’s mission statement provides guidelines in terms of the areas that the long-term goals focus on, such as product, market, technology, profitability and corporate governance.
   5. Short-term goals should incorporate these focus areas into key operational areas.
   6. The link between long-term goals and short-term goals cascades through the organization, from the broad vision and basic goals to specific short-term targets. This cascade can provide a clear reference for communication.

Question 3

Question 3 - Explain what a functional tactic is.(3) [B3.3-Nov10 + SG-p110]

Answer 3

1. Functional tactics support short term objectives and can be defined as the key routine activities that must be performed in each functional area to achieve organisation’s chosen strategies (marketing, finance, operations, human resources mng).
   
   2. They translate organisation’s grand strategies into action to ensure that short term objectives are met.
   3. It clarifies the business strategy. It provides specific short term guidance to managers and employees in functional areas.

Question 4

Question 5 - Explain the role of policies in strategy implementation.(4-5) [B3.2-Jun12+B3.2-Nov10 +A4-Jun09+SG-p116]

Answer 4

• Expound on the importance of having policies in place in strategy implementation.
  
  1. Policies are specific guidelines, methods, procedures, rules, forms and administrative practices that direct the actions of the managers and employees in the organisation. In order to be a valuable strategy implementation instrument, policies should support the chosen strategies.
  2. Policies inform employees/ managers what is expected of them in strategy implementation.
  3. Policies need to support a chosen strategy, and a change in strategy may require a change in policy.
  4. Policies guide the day-to-day activities and procedures that ensure successful strategy implementation.
  5. Policies provide a basis for control and promote coordination and consistency across organisational units in strategy implementation.

Question 5

Question 4 - Explain how functional tactics differ from corporate and business strategies. (6)

Answer 5

Differences —- Functional tactics
Time horizon —- Identify tasks and activities that must be done in the near future
Specificity —- Identify the specific activities that needs to be performed
Developers —- Developed within the operational areas of the organisation

Differences —- Business strategy
Time horizon —- Grand strategies focus on the organisations position in the next few years
Specificity —– Provides general direction
Developers —- Developed at top management level

Functional tactics only focus on what needs to be done immediately and they are more specific and are developed at the operational level.

However, functional tactics provide guidance for implementing the chosen corporate and business strategy.