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LESSON No. 3 STRATEGIC IMPLEMENTATION
LESSON No. 3 STRATEGIC IMPLEMENTATION
STRATEGY comes from the Greek word strategos, which means “the art of the general.”
A strategy is not realized all the time, 100% of its intentions. The conditions in the
environment may affect an intended goal or objective to strategy. Employees may lay
the needed commitment to make the strategy work. The entire organization may resist
the change at the last minute. The list goes on and on.
LEVELS OF STRATEGY
A strategy falls into three different levels. They are the following: corporate,
business and functional strategies.
Corporate Strategy. It comprises of decisions that give the organization what industry it
will be and not be in and how it will allocate specific resources.
With this kind of environment companies are facing right now, strategy
implementation should be accompanied by effective leadership and communication.
There should be a formulation of vision, mission and values. There should be the
enthusiasm in all levels. Commitment should emanate, that will spell sound results.
The organizational structure of the company should allow empowerment and there is
accountability on all strategic actions. Short-term goals should also be created at the
business level.
It depends on the company on how it can unite all the functions into one whole,
and make the strategy works.
Functional strategies
2. FINANCE
There are three important decisions: investment decision, financing decision and
the dividend decision.
2.1 The investment decision is also called capital budgeting. It involves the
allocation of resources including capital to projects, productions or services, and
assets. This is an efficient placement of capital to various means.
2.2 Financing decisions examines and finds the best capital structure for the
organization. It determines how the firm can raise capital such as selling of assets,
issuing stock or obtaining a debt facility.
2.3 The dividend decision concerns the right period or, time frame by which the
organization will issue a percentage of income to stockholders through dividends. It
also determines the issuance of stocks and the earnings retained to the firm.
3. PRODUCTION
The production or operations function includes those activities that transform
inputs to products or services.
3.1 Process – This includes various activities such as the use of facilities,
production flow analysis and physical distribution system
3.2 Capacity – Capacity decisions concern with the determination of optimal
output levels for the firm without going over or under production. To achieve this, the
company makes a forecast and schedule production operations.
3.3 Inventory – There is a need to manage the level of raw materials, work in
process and finished goods inventory. This also summarizes the size, quantity and
period or orders. On the other hand, workforce decisions include the management of
skilled, unskilled, clerical and management employees. There should be appropriate
motivation techniques, job design, and job enrichment, among others.
3.4 Quality – It denotes the quality goods and services. This includes testing,
quality, quality assurance and cost control.