STRAMA 9

Strategy implementation

is the totality of activities and choices required to execute a strategic plan.

Strategy implementation

It is the process by which objectives, strategies, and policies are implemented through developing programs, tactics, budgets, and procedures.

·        Who are the people who will carry out the strategic plan?

The implementation process requires strategy makers to consider these questions: 1

·        What must be done to align the company’s operations in the new intended direction?

The implementation process requires strategy makers to consider these questions: 2

Howiseveryonegoingtowork togethertodowhatis needed?

The implementation process requires strategy makers to consider these questions: 3

1.      Define the strategy framework.

pre-requisites of strategy implementation

The strategy should be embedded in everything that a company does

1.      Define the strategy framework.

pre-requisites of strategy implementation

. It involves translating organizational conduct, mission, vision, policies, and strategic plans into general actions that guide an organization's daily activities.

1.      Build a strategic plan.

pre-requisites of strategy implementation

It involves establishing cooperation, personnel development, degree of commitment, determination, and efficiency within an organization.

1.      Define Key Performance Indicators (KPI).

pre-requisites of strategy implementation

Key performance indicators provide clear information of progress towards an end-goal and measure factors such as efficiency, quality, timeliness, and performance.

Key performance indicators

pre-requisites of strategy implementation

provide clear information of progress towards an end-goal and measure factors such as efficiency, quality, timeliness, and performance.

1.      Implement consistent reports.

pre-requisites of strategy implementation

It involves an overview of how the strategy looks in the present and how it is progressing over time.

1.      Implement consistent reports.

pre-requisites of strategy implementation

It must include a comparison period or graphs/charts showing progress to maintain momentum.

1.      Link performance reviews to strategy.

pre-requisites of strategy implementation

It involves monitoring the progress of the implemented strategy and determining whether it is relevant to the organization's purpose.

Strategy implementation

involves establishing programs and tactics to create a series of organizational activities, budgets to allocate funds for the initiated activities, and procedures to monitor and control the progress of the activities as follows:

tactic

A program or a WHAT aims to make a strategy action-oriented. In practice, a program is a collection of tactics, and a tactic is an individual action taken by the organization as an element of the effort to accomplish a plan.

A.     Programs.

aims to make a strategy action-oriented.

A.     Programs.

In practice, a program is a collection of tactics, and a tactic is an individual action taken by the organization as an element of the effort to accomplish a plan.

program

a WHAT is a collection of tactics,

tactic

is an individual action taken by the organization as an element of the effort to accomplish a plan.

•        Frontal attack.

different types of offensive tactics:

The attacker goes head-to-head with its competitor.

•        Frontal attack.

different types of offensive tactics:

It matches its opponent’s product, advertising, price, and distribution in a pure frontal attack.

•        Frontal attack.

different types of offensive tactics:

This type of attack is generally costly.

 

•        Frontal attack.

different types of offensive tactics:

Example: Xerox seized the copy market from 3M by developing a better copying process.

Later, Canon grabbed a large chunk of Xerox’s market by introducing desk copiers.

•        Flank attack.

different types of offensive tactics:

Rather than going with a frontal assault, the attacker intends to attack the competitor's weak points or blind spots, especially the market leader or direct competitor.

•        Flank attack.

different types of offensive tactics:

Example: Steve Jobs attacked BlackBerry, a technological innovator with market dominance, by developing iPhone. He assembled an integrated circuit, and customers loved it because of the amazing ease of use and range of applications offered

•        Encirclement attack.

different types of offensive tactics:

attempts to capture a wide slice of territory by launching a grand offensive on several fronts.

•        Encirclement attack.

different types of offensive tactics:

It makes sense when the attacker commands superior resources, has a greater product variety, or serves more markets.

•        Encirclement attack.

different types of offensive tactics:

Example: In making a stand against archrival Microsoft, Sun Microsystems licensed its Java software to hundreds of companies and millions of software developers for all consumer devices. As consumer electronics products began to go digital, Java started appearing in a wide range of gadgets.

•        Bypass attack.

different types of offensive tactics:

This tactic attempts to cut the market from under the established defender by offering a new type of product that makes the competitor’s product unnecessary.

•        Bypass attack.

different types of offensive tactics:

Bypassing the enemy to attack more accessible markets instead provides three (3) lines of approach: diversifying into unrelated products and new geographical markets and leapfrogging into new technologies.

 

diversifying into unrelated products

•        Bypass attack.

Bypassing the enemy to attack more accessible markets instead provides three (3) lines of approach: WHAT and new geographical markets and leapfrogging into new technologies.

diversifying into new geographical markets

•        Bypass attack.

Bypassing the enemy to attack more accessible markets instead provides three (3) lines of approach: diversifying into unrelated products and WHAT and leapfrogging into new technologies.

leapfrogging into new technologies.

•        Bypass attack.

Bypassing the enemy to attack more accessible markets instead provides three (3) lines of approach: diversifying into unrelated products and new geographical markets and WHAT

•        Bypass attack.

different types of offensive tactics:

Example: Apple introduced the iPod as a personal digital music player instead of competing directly against Microsoft’s Pocket PC and Palm Pilot for the handheld computer market. It was the most radical change in how people listen to music since the Sony Walkman. By redefining the market, Apple successfully sidestepped both Intel and Microsoft, leaving them to play “catch-up.”

•        Guerrilla attack.

different types of offensive tactics:

consist of small, intermittent attacks, conventional and unconventional, including selective price cuts, intense promotional blitzes, and occasional legal action, to harass the opponent and eventually secure permanent footholds.

•        Guerrilla attack.

different types of offensive tactics:

Example: Red Bull is no stranger to guerilla marketing stunts. In 2012, they pulled off a major coup by sponsoring the first successful Stratos jump from space. The jump generated a lot of publicity for the brand and was watched by millions of people worldwide.

1.      Raise Structural Barriers.

Entry barriers act to block a challenger’s logical avenues of attack.

1.      Raise Structural Barriers.

Instead of increasing competitive advantage per se,WHAT makes a company’s or business unit’s competitive advantage more sustainable by causing a challenger to conclude that an attack is unattractive.

·        Position defense.

1.      Raise Structural Barriers.

It means occupying the most desirable position in consumers’

minds, making the brand almost impenetrable.

·        Position defense.

1.      Raise Structural Barriers.

Example: Procter & Gamble “owns” the key functional benefit in many product categories, with Tide detergent for cleaning, Gillette for razors and skin care, and Pampers diapers for dryness.

 

·        Flank defense:

1.      Raise Structural Barriers.

The defender should erect outposts to protect a weak front or support a possible counterattack.

·        Flank defense:

1.      Raise Structural Barriers.

Flanking strategy is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill them and develop them into strong segments.

 

Flanking strategy

1.      Raise Structural Barriers.

is another name for identifying shifts in market segments that are causing gaps to develop, then rushing in to fill them and develop them into strong segments.

 

·        Flank defense:

1.      Raise Structural Barriers.

Example: Samsung developed several product lines (Note Series, A Series, M Series, etc.) to capture the segment when their flagship/high-end products (Galaxy S Series) are underperforming.

1.      Increase Expected Retaliation.

This tactic is any action that increases the perceived threat of retaliation for an attack.

1.      Increase Expected Retaliation.

It is crucial in markets important to the defending company or business unit.

·        Preemptive defense:

Increase Expected Retaliation.

A more aggressive maneuver is to attack first, perhaps with guerrilla action across the market—hitting one competitor here, another there—and keeping everyone off balance.

·        Preemptive defense:

Increase Expected Retaliation.

Another is to achieve a broad market envelopment that signals competitors not to attack.

 

·        Preemptive defense:

Increase Expected Retaliation.

Example: If Microsoft announces plans for new product development, smaller firms may concentrate their development efforts in other directions to avoid head-to-head competition.

 

·        Counteroffensive defense:

Increase Expected Retaliation.

In a WHAT, the defender can meet the attacker frontally and hit its flank or launch a pincer movement for the attacker to pull back to defend itself.

·        Counteroffensive defense:

Increase Expected Retaliation.

Another form of WHAT is the exercise of economic or political clout.

 

·        Counteroffensive defense:

Increase Expected Retaliation.

Example: Technology leaders like Apple, Intel, and Microsoft have aggressively defended their brands in court for patent infringement lawsuits.

1.      Lower the inducement for attack.

The third type of defensive tactic is to reduce a challenger’s

expectations of future profits in the industry.

·        Mobile defense:

1.      Lower the inducement for attack.

In WHAT, the leader stretches its domain over new territories through market broadening and diversification.

·        Mobile defense:

1.      Lower the inducement for attack.

Market broadening shifts the company’s focus from the current product to the underlying generic need.

 

·        Mobile defense:

1.      Lower the inducement for attack.

Example: When U.S. tobacco companies such as Reynolds and Philip Morris acknowledged the growing curbs on cigarette smoking, instead of defending their market position or looking for cigarette substitutes, they moved quickly into new industries such as beer, liquor, soft drinks, and frozen foods.

·        Contraction defense:

1.      Lower the inducement for attack.

Sometimes, large companies can no longer defend all their territory.

·        Contraction defense:

1.      Lower the inducement for attack.

In planned contraction (also called strategic withdrawal), they give up weaker markets and reassign resources to stronger ones.

·        Contraction defense:

 

1.      Lower the inducement for attack.

Example: P&G sold Pringles to Kellogg, an American Multinational Food Manufacturing Company, for almost $2.7 billion when it decided to get out of the foods business to focus on its core household and consumer products.

A.    Budgets.

It is a way for a corporation to check the feasibility of its selected strategy by identifying the high cost incurred during strategy implementation.

A.    Budgets.

An ideal strategy might be completely impractical only after specific implementation programs and tactics are costed in detail.

 

A.    Budgets.

Example: Mondelez is the world’s largest cocoa buyer and, in 2012, committed to dramatically increasing the supply of sustainably grown cocoa in six (6) big cocoa-producing countries. The company budgeted US$400 million or 20 billion pesos to reach over 200,000 cocoa farmers by 2022.

A.       Procedures.

These are often called Standard Operating Procedures (SOPs), which typically detail the various activities that must be carried out to complete a corporation’s programs and tactical plans.

A.       Procedures.

Once in place, procedures must be updated to reflect changes in technology and strategy.

 

A.       Procedures.

Example: A company following a differentiation strategy manages its sales force more closely than a firm following a low-cost strategy. Differentiation requires long-term customer relationships created from close interaction with the sales force. An in-depth understanding of the customer’s needs provides the foundation for product development and improvement.