فاينل استراتيجيه

strategy implementation

-the sum total of all activities and choices required for the execution of a strategic plan

Ten Common Strategy Implementation Problems

1.Took more time than planned
2.Unanticipated major problems
3.Ineffective coordination
4.Competing activities and crises created distractions
5.Employees with insufficient capabilities
6.Lower-level employees were inadequately trained
7.Uncontrollable external environmental factors
8.Poor departmental leadership and direction
9.Key implementation tasks and activities were poorly defined
10.The information system inadequately monitored activities

•Program

-a collection of tactics where a tactic is the individual action taken by the organization as an element of the effort to accomplish a plan
•The purpose of a program or a tactic is to make a strategy action-oriented.

Timing tactic

-deals with when a company implements a strategy

•First mover

-first company to manufacture and sell a new product or service

•Late movers

-may be able to imitate the technological advances of others, keep risks down by waiting until a new technological standard or market is established, and take advantage of the first mover's natural inclination to ignore market segments

•Market location tactic

-deals with where a company implements a strategy

•Offensive tactic

-usually takes place in an established competitor's market location

•Defensive tactic

-usually takes place in the firm's own current market position as a defense against possible attack by a rival

Budgets & Procedures

•Planning a budget is the last real check a corporation has on the feasibility of its selected strategy.

•Procedures

-detail the various activities that must be carried out to complete a corporation's programs
-standard operating procedures

•Synergy

-exists for a divisional corporation if the return on investment is greater than what the return would be if each division were an independent business

Six Forms of Synergy

1.Shared know-how
2.Coordinated strategies
3.Shared tangible resources
4.Economies of scale or scope
5.Pooled negotiating power
6.New business creation

Structure follows strategy

changes in corporate strategy lead to changes in organizational structure
1.New strategy is created.
2.New administrative problems emerge.
3.Economic performance declines.
4.New appropriate structure is created.
5.Economic performance rises.

Stages of Corporate Development

I.Simple Structure
-Flexible and dynamic
II.Functional Structure
-Entrepreneur is replaced by a team of managers
III.Divisional Structure
-Management of diverse product lines in numerous industries
-Decentralized decision making
IV.Beyond SBU's
-Matrix
-Network

Internal -blocks to changing stages

-Lack of resources
-Lack of ability
-Refusal of top management to delegate

•External-Blocks to Changing Stages

-Economic conditions
-Labor shortages
-Lack of market growth

Blocks to Changing Stages(Entrepreneurs)

•Loyalty to comrades
•Task oriented
•Single-mindedness
•Working in isolation

•Matrix structures

-functional and product forms are combined simultaneously at the same level of the organization

Conditions for matrix structures include:

•Ideas need to be cross-fertilized across projects or products.
•Resources are scarce.
•Abilities to process information and to make decisions needs to be improved.

Three distinct phases of matrix structure development include:

1.Temporary cross-functional task forces
2.Product/brand management
3.Mature matrix

•Network Structure

-virtual elimination of in-house business functions

•Virtual organization

-Composed of a series of project groups or collaborations linked by constantly changing non-hierarchical, cobweb-like electronic networks

•Cellular/Modular Structure

-composed of cells (self-managing teams, autonomous business units, etc.) which can operate alone but which can interact with other cells to produce a more potent and competent business mechanism
•Beginning to appear in firms that are focused on rapid product and service innovation.

•Reengineering

-the radical redesign of business processes to achieve major gains in cost, service, or time
-effective program to implement a turnaround strategy

Principles for Reengineering

•Organize around outcomes, not tasks.
•Have those who use the output of the process perform the process.
•Subsume information-processing work into real work that produces information.
•Treat geographically-dispersed resources as though they were centralized.
•Link parallel activities instead of integrating their results.
•Put the decision point where the work is performed and build control into the process.
Capture information once and at the source

•Six Sigma

-analytical method for achieving near perfect results on a production line
-emphasis on reducing product variance in order to boost quality and efficiency

•Lean Six Sigma

-includes the removal of unnecessary steps in any process and fixing those that remain

•Job design

-the study of individual tasks in an attempt to make them more relevant to the company and to the employees

•Job design techniques:

-Job enlargement
§combining tasks to give a worker more of the same type of duties to perform
-Job rotation
§moving workers through several jobs to increase variety

•Job characteristics

-using task characteristics to improve employee motivation

•Job enrichment

-altering the jobs by giving the worker more autonomy and control over activities

•Product group structure

-enables the company to introduce and manage a similar line of products around the world
-enables the corporation to centralize decision- making along product lines and to reduce costs

•Geographic area structure

-allows the company to tailor products to regional differences and to achieve regional coordination

Corporate Strategy

the choice of direction of the firm as a whole and the management of its business or product portfolio and concerns

Corporate Strategy

-Directional strategy
-Parenting strategy
-Portfolio analysis
-Corporate Strategy

Directional strategy

the firm's overall orientation toward growth, stability, or
retrenchment.

Portfolio analysis

industries or markets in which the firm competes through
its products and business unites.

Parenting strategy

the manner in which management coordinates activities, transfers resources, and cultivates capabilities among product lines and business units.

Corporate Directional strategies

-Growt
- stability
-Retrenchment

Directional Strategy

- Growth strategies
-Stability strategies
-Retrenchment strategies

Growth Strategies

• Merger
• Acquisition

• Growth strategies

- expand the company's activities

• Stability strategies

make no change to the company's current
activities.

• Retrenchment strategies

reduce the company's level of activities

• Merger

- a transaction involving two or more corporations in which both companies exchange stock in order to create one
new corporation.

• Acquisition

purchase of another company

• Vertical growth

achieved by taking over a function previously
provided by a supplier or distributor.

• Vertical integration

- the degree to which a firm operates vertically in multiple locations on an industry's value chain from extracting raw materials to manufacturing to retailing.

Backward integration

- assuming a function previously provided by a supplier.

Forward integration

assuming a function previously provided by a distributor.

Transaction cost economies

- vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying on the open market become too great.

• Full integration

a firm internally makes 100% of its key suppliers and completely controls its distributors.

• Taper integration

a firm internally produces less than half of its own requirements and buys the rest from outside suppliers.

• Quasi-integration

a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control.

• Long-term contracts

- agreements between two firms to provide agreed- upon goods and services to each other for a specific time

• Horizontal growth

- expansion of operations into other geographic locations and/or increasing the range of products and services offered to current markets.

• Horizontal integration

- the degree to which a firm operates in multiple geographic locations at the same point in an industry's value chain

Concentric (related) diversification

- growth into a related industry when a firm has a strong competitive position, but industry attractiveness is low

Conglomerate (unrelated) diversification

- diversifying into an industry unrelated to its current one
- management realizes that the current industry is
unattractive
- firm lacks outstanding abilities or skills that it could easily transfer to related products or services in other industries

Diversification Strategies

• Concentric (related) diversification
• Conglomerate (unrelated) diversification

Stability Strategies

• Pause/proceed with caution strategy
• No-change strategy
• Profit strategy

Pause/proceed with caution strategy

an opportunity to rest before continuing a growth or retrenchment
strategy.

• No-change strategy

- decision to do nothing new—a choice to continue current
operations and policies for the foreseeable future.

• Profit strategy

- decision to do nothing new in a worsening situation but instead to
act as though the company's problems are only temporary

• Retrenchment strategies

- used when the firm has a weak competitive position in some or all of its product lines from poor performance

Retrenchment Strategies

• Turnaround strategy
• Contraction
• Sell-out strategy
• Captive company strategy
• Divestment
• Bankruptcy
• Liquidation
• Consolidation

• Turnaround strategy

- emphasizes the improvement of operational efficiency when the corporation's problems are pervasive but not critical

• Contraction

- effort to quickly "stop the bleeding" across the board
but in size and costs

• Consolidation

- stabilization of the new leaner corporation

• Captive company strategy

company gives up independence in exchange for security

• Sell-out strategy

management can still obtain a good price for its shareholders and the employees can keep their jobs by selling the company to another firm

• Divestment

sale of a division with low growth potential

• Bankruptcy

company gives up management of the firm to the courts in return for some settlement of the corporation's obligations

• Liquidation

management terminates the firm

• Portfolio analysis

- management views its product lines and business units as a series of investments from which it expects a profitable return

• Question marks

- new products with the potential for success but need a lot of cash for development

• Stars

- market leaders that are typically at or nearing the peak of their product life cycle and can generate enough cash to maintain their high share of the market and usually contribute to the company's profits

• Cash cows

- products that bring in far more money than is needed to maintain their market share

• Dogs

- products with low market share and do not have the potential to bring in much cash

Functional strategy

- the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity

• Marketing strategy

- deals with pricing, selling, and distributing a product

Market development strategy

- a company or business unit can:
▪ capture a larger share of an existing market for current products through market saturation and market penetration
▪ develop new uses and/or markets for current products

Product development strategy

- a company or unit can:
▪ develop new products for existing markets
▪ develop new products for new markets

Brand extension

using a successful brand name to market other products

Push strategy

- spending a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets

• Pull strategy

advertising to "pull" products through the distribution channels

Skim pricing

- offers the opportunity to "skim the cream" from the top of the demand curve with a high price while the product is novel and competitors are few

Penetration pricing

- attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with low price and then dominate the industry

• Financial strategy

- examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action
• The management of dividends and stock price is an important part of a corporation's financial strategy.

Leveraged buyout

- company is acquired in a transaction financed largely by debt usually obtained from a third party

Reverse stock split

- investor 's shares are split in half for the same total amount of money

Research and Development (R&D) strategy

- deals with product and process innovation and improvement
- also deals with the appropriate mix of different types of R&D and question of how new technology should be accessed

Technological leader

- pioneering an innovation

Technological follower

- imitating the products of competitors

Open innovation

- firm uses alliances and connections with corporate, government, academic labs, and consumers to develop new products and processes

Operations strategy

- determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers

Purchasing strategy

- deals with obtaining raw materials, parts and supplies needed to perform the operations function
- multiple, sole, and parallel sourcing

Multiple sourcing

the purchasing company orders a particular part from several vendors

Sole sourcing

- relies on only one supplier for a particular part