STRAMA (PF) - H1

Strategy implementation

It 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.

Define the strategy framework.

The strategy should be embedded in everything that a company does.

Define the strategy framework.

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

Build a strategic plan.

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

Define Key Performance Indicators (KPI).

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

Implement consistent reports.

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

Implement consistent reports.

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

Link performance reviews to strategy.

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

Strategy implementation

It 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 (Bamford et al.)

Programs.

A (?) or a tactic aims to make a strategy action-oriented.

Programs.

In practice, a (?) 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

It is a collection of tactics.

Tactic

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

Frontal attack.

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

Frontal attack.

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

Frontal attack.

This type of attack is generally costly.

Frontal attack.

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.

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.

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.

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

Encirclement attack.

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

Encirclement attack.

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.

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.

(?) 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.

Bypass attack.

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.

(?) attacks 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.

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.

Raise Structural Barriers.

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

Raise Structural Barriers.

Instead of increasing competitive advantage per se, (?) 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.

It means occupying the most desirable position in consumers’ minds, making the brand almost impenetrable.

Position defense.

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

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

Flank defense

This 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.

Flank defense

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.

Increase Expected Retaliation.

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

Increase Expected Retaliation.

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

Preemptive defense

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

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

Preemptive defense

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

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

Another form of (?) is the exercise of economic or political clout.

Counteroffensive defense

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

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

The leader stretches its domain over new territories through market broadening and diversification. Market broadening shifts the company’s focus from the current product to the underlying generic need.

Mobile defense

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

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

Contraction defense

they give up weaker markets and reassign resources to stronger ones.

Contraction defense

also called strategic withdrawal

Contraction defense

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.

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

Budgets

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

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.

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.

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