Strategic Management

1. Anu Bajracharya
Lecturer of strategic management
IB&MS COLLEGE

2. STARTEGY
IMPLEMENTATION
Agenda
 Meaning & Definition of Strategy
Implementation
 Nature of Strategy Implementation
 Elements of Strategy Implementation
 Role of Top management in Strategy
Implementation
 Issues in Strategy Implementation

3. ORGANIZATION STRUCTURE
 Introduction
 Features, Purpose & Importance of
Organization Structure
 Types of Organization Structure
 Matching structure with strategy

4. RESOURCE ALLOCATION
 Introduction
 Factors affecting Resource Allocation
 Difficulties in Resource Allocation

5. STRATGIC EVALUATION &
CONTROLLING SYSTEM
 Introduction
 Strategic Evaluation
 Purpose of Strategic Evaluation
 Nature of Strategic Evaluation
 Importance of Strategic Evaluation
 Criteria for Strategic Evaluation
 Quantitative Factors
 Qualitative Factors

6. STRATEGIC CONTROL
 Introduction
 Importance of Strategic Control
 Types of Strategic Control

13. Nature of Strategic
Implementation

14. Elements of Strategic
Implementation1.Differentiation/Organizing task:- It is related with segmentation or dividing up the
total strategic plan in to its component parts.
2.Integration:- It is concerned with unifying the diverse segments of activity and sub-
goals.
3.Task Focus (Value)-Uncertainty in the task environment,
Task diversity, &
Interdepence
4.Structure- Division of labour,
Departmentalization,
Shape, Interdependence, &
Distribution of Power
5.Decision Process and control:-Planning & control systems, Information system,
Decision-making system, & Integration roles.
6.Reward System:-Performance measures, compensation system, Job design,
responsibility, & accountability, etc
7. People:-Leadership styles, Department, relocation, Recruiting & Selection & Training
Development.

15. Role of Top-Management In
Strategic Implementation
1. Establishing Objectives
2. Designing Policies
3. Revising reward & Incentive System
4. Matching managers with strategy
5. Developing a strategy supportive Culture
6. Adapting production/ operations and processes
7. Effective Implementation
8. Design of information system

30. Types of Organization Structure
I. Line organization
II. Line & Staff Organization
III. Functional Organization
IV. Divisional Structure
V. Project organization
VI. Matrix Organization

52. Matching Structure with
Strategy
 Strategy gurus like Alfred Chandler and M. E.
Porter argue that structure follows strategy.
 Porter states that corporations can adopt one of
three general (generic) strategies: cost
leadership, differentiation, and focus. And, for
each alternative strategy alternative organization
design/structure exists.
 Chandler, on the other hand, has emphasized
that organization structures follow the growth
strategies of the firms. Alternative structures
exist for alternative growth strategies , viz.,
volume expansion, geographic expansion and
product diversification.

53. Matching Structure with
Strategy
 Depending upon the strategic choice (along with
some other factors like size of the firm,
technology used, environmental complexities
etc.), a firm may pursue one of the following
structures.
1. Simple/ Entrepreneurial Structure
2. Functional Structure
3. SBU Structure
4. Divisional Structure
5. Matrix Structure
6. Holding Company Structure
7. Network Structure
8. Other Structures

55. Idiosyncratic- Curiosity

60. Factors Affecting Resource
Allocation
I. Objectives of Organization
II. Preference of Dominant Strategies: The
dominant strategists most often the CEO-tend to
affect the process of resource allocation.
III. Internal Politics: Resources are often mis-
constructed as power.
IV. External influences: These influences arise due
to govt. policy & stipulation, the demands of
external shareholders, financial institution,
community & others.

61. Difficulties in Resource
Allocation
I. Scarcity of Resources
II. Import Restrictions
III. Human Resources
IV. Departmental Power Politics (Budget Battles)

80. Importance of Strategic Control
 Control & Efficiency
 Control & Quality
 Control & Innovation
 Control & Responsiveness to Customers