Strategic Management: Formulation and Execution Essentials

Strategy Development and Formulation

Strategy formulation is concerned with developing a corporation’s mission, objectives, strategies, and policies.

Strategy Implementation

Strategy implementation is the sum total of all activities and choices required for the execution of a strategic plan.

Common Implementation Challenges

• Took more time than planned
• Unanticipated major problems
• Ineffective coordination
• Competing activities and crises creating distractions
• Employees with insufficient capabilities
• Inadequately trained lower-level employees
• Uncontrollable external environmental factors
• Poor departmental leadership and direction
• Poorly defined key implementation tasks
• Inadequate information system monitoring

Implementation in Large Corporations

Programs: A collection of tactics where a tactic is the individual action taken by the organization to accomplish a plan.

Procedures: Detailed activities that must be carried out to complete a corporation’s program, including standard operating procedures.

Synergy and Market Tactics

Synergy: Exists for a divisional corporation if the return on investment is greater than if each division were an independent business. Forms include shared know-how and economies of scale.

Market Location Tactics: Deals with where a company implements a strategy.

• Offensive tactics: Usually take place in an established competitor’s market location.
• Defensive tactics: Usually take place in the firm’s own current market position to defend against rival attacks.

Strategy Feasibility and Integration

Feasibility: Planning a budget is the final check on the feasibility of a selected strategy.

Successful Integration Management: Requires deep knowledge of the acquiring company, a flexible management style, the ability to work in cross-functional teams, independence, and high emotional and cultural intelligence.

Executive Leadership and Strategy

Executive types and corporate strategies: Executives with specific skill sets paired with corporate strategies, including:

• Dynamic industry expert
• Analytical portfolio manager
• Cautious profit planner
• Turnaround specialist
• Professional liquidator

Types of Chief Executive Officers