Presentation Business Policy

7/31/2019 Presentation Business Policy

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PRESENTATION

ON

STRATEGYIMPLEMENTATION &

CONTROL

PRESENTED BY:

NIKITA DHIMAN

PRIYA NAGPALYOGESH BANSAL

RAKESH SINGH


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STRATEGY

IMPLEMENTATION

TRANSLATION OF CHOSEN ACTIVITY INTOORGANIZATIONAL ACTION.

MANNER IN WHICH AN ORGANIZATIONSHOULD DEVELOP, UTILIZE AND AMALGAMATEORGANIZATIONAL STRUCTURE, CONTROLSYSTEMS AND CULTURE TO FOLLOWSTRATEGIES.

PROCESS THROUGH WHICH CHOSEN STRATEGYIS PUT INTO ACTION.


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NATURE OF STRATEGY

IMPLEMENTATION

ACTION ORIENTATION

COMPREHENSIVE IN SCOPE

DEMANDING VARIED SKILLS

WIDE-RANGING INVOLVEMENT

INTEGRATED PROCESS


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BARRIERS TO STRATEGY

IMPLEMENTATION

AN INABILITY TO MANAGE CHANGE

POOR OR VAGUE STRATEGY

POOR OR INADEQUATE INFORMATION

SHARING

UNCLEAR RESPONSIBILITY AND

ACCOUNTABILITY


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INTERRELATIONSHIP OF

FORMULATION AND

IMPLEMENTATION TWO-WAY LINKAGE BETWEEN FORMULATON

AND IMPLEMENTATION OF STRATEGY

FORWARD STRATEGY

IMPLEMENTATI

ON (ACTION)

STRATEGY

FORMULATION

(THOUGHT)


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A MODEL OF STRATEGY

IMPLEMENTATION

ACTIVATING MANAGING ACHIEVINGSTRATEGIES CHANGE EFFECTIVENESS

STRATEGIC

PLAN

PROJECT

IMPLEMENTATI

ON

PROCEDURAL

IMPLEMENTATIO

N

RESOURCE

ALLOCATION

STRUCTURAL

IMPLEMENTATI

ON

LEADERSHIP

IMPLEMENTATI

ON

BEHAVIOURAL

IMPLEMENTATION

FUNCTIONALIMPLEMENTAT

ION

OPERATIONAL

IMPLEMENTAT

ION

EVALUATION &

CONTROL

FEEDBACK


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STEPS IN IMPLEMENTING A

STRATEGY

Developing an organization having potential of carrying

out strategy successfully.

Disbursement of abundant resources to strategy-essential

activities.

Creating strategy-encouraging policies.

Employing best policies and programs for constant

improvement.

Linking reward structure to accomplishment of results.

Making use of strategic leadership.


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WHY

FORMULATED STRATEGIESFAIL?

FORMULATED STRATEGIES FAIL IF NOT

IMPLEMENTED PROPERLY.


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WHAT SHOULD BE DONE FOR

PROPER IMPLEMENTATION?

CREATE STABILITY BETWEEN STRATEGY AND

ORZATIONAL STRUCTURE

REWARD STRUCTURE

RESOURCE- ALLOCATION PROCESS


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ORGANIZATIONAL STRUCTURE

SIMPLE STRUCTURE

President

Employees

Owner-manager makes

decisions.

Little specialization of tasks.

Few rules, little

formalization.

Advantages:

- Provides high

flexibility

- Rapid product

introduction

- Few coordination

problems


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CONT..

FUNCTIONAL STRUCTURE

President

AccountingLegal

Affairs

HRM Finance Marketing R&D Production


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CONT..

Advantages

- Centralized control of operations

- Promotes in-depth functional expertise

- Enhances operating efficiency where tasks are

routine

Disadvantages

- Functional coordination problems

- Inter-functional rivalry- Overspecialization and narrow viewpoints

- Hinders development of cross-functional

experience

- Slower to respond in turbulent environments


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CONT..

NETWORK STRUCTURE

Focal

Firm

Partner Partner

Partner Partner

Group of firms combine

resources to achieve togetherwhat they cant achieve alone.

Advantages:- Firms emphasize their own

core competencies.

-Rapid response time

- Very flexible

Disadvantages

- Asymmetric information

- Trustworthiness of partners

- Asset hold-up

G S C S


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TYING REWARDS AND INCENTIVES

TO GOOD STRATEGY

IMPLEMENTATION MONETARY

INCENTIVES

SALARY

BONUS

PROFIT-SHARING

PLANS

NON-MONETARY

INCENTIVES

REWARDS

RECOGNITION

DESGNATION


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Allocating Resources to

Support Strategy Execution

Resource allocation should fit strategy

Changing strategy requires changes to resource

allocation process

Shifting resourcesdownsizing some areas,

upsizing others, getting rid of activities no longer

needed, and funding new strategically critical

activities Financial and other resources (physical and human

assets)


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BEHAVIOURAL

IMPLEMENTATION

The behavioural of the employees affect the success of theorganization. Thus, Strategic implementation requiressupport, discipline, motivation and hard work from allmanager and employees.

Relates to the behavior of strategists i.e. behavior asindividuals as well as in groups. And this includes:

Corporate Governance

Leadership style

Personal ethics Political Behaviour

Social responsibility being a CEO who is committed to socialideas.


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BEHAVIOURAL

IMPLEMENTATION AT INFOSYS

TECHNOLOGIES INFOSYS has impeccable financial performance record,

but here are several aspects of behavioural

implementation that works behind the scenes, adding to

its reputation as a company. INFOSYS has 9 principles of corporate governance

including transparency, satisfying the spirit.

INFOSYS has developed guidelines for corporate

governance in terms of composition of board ofdirectors, board meetings, board committees,

management review and responsibility.

Strategic leadership of infosys


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BEHAVIOURAL IMPLEMENTATION

AT INFOSYS TECHNOLOGIES

CONT.. CULTURE AND VALUE SYSTEM AT INFOSYS. Value system is C-

LIFE and stands for

CCUSTOMER DELIGHT

LLEADERSHIP

IINTEGRITY

FFAIRNESS EEXCELLENCE

CORPORATE CULTURE: Flat organization culture, opencommunication, information sharing and autonomy in decision-making

PERSONAL VALUES AND BUSINESS ATHICS

SOCIAL RESPONSIBILITY : Beyond Business


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FUNCTIONALIMPLEMENTATION

Organizations are COMPLEX ENTITIES.

Organizations are systems having sub-systems. In the

case of BUSINESS ORGANIZATIONS, these sub-

systems are often their functional departments such asmarketing and operations.

Functional Strategies: Carried out through functional

and operational implementation


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CONT..

FUNCTIONAL IMPLEMENTATION: Done throughfunctional plans and policies in different functional

areas. Functional areas where plans and policies are

implemented:

Finance Marketing

Operations

Personnel

Information Management


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CONT..

Main features of the functional plans and policies atMRF Ltd. are :

Financial Area

Low equity base

To the maximum extent, depends on internal funds

Avoid substantial stake by financial institutions

Financial systems are largerly institutionalised.

High inventories act as a buffer against fluctuations inraw material, especially natural rubber prices.


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CONT..

MARKETING AREA MRF believes in listening to the consumers.

Understanding consumer behaviour for productdesigning, entering new markets and building price-

insensitive brand. Improvement in product quality through in-house as

well as foreign technology.

Shift in the product mix with greater emphasis on tyresfor car and the two-wheeler segments.

Export is a thrust area. MRF exports to 75 countries.

MRF follows a policy of holding prices anddiscouraging discounts.


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CONT..

Greater emphasis on TV advertising.

The media mix has print, outdoor, internet and below-

the-line activities like mailers.

Promotion is based on personal contact with truck

operators and effective after-sales service along withcustomer counselling.

Corporate mascot is a MUSCLEMAN that is designed

to project strength, reliability and durability.

Distribution policy is to focus on dealers as an importantmarket linkage

Vast dealer network of 2500 outlets.


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CONT..

OPERATIONAL AREA

Operational policy of MRF is to expand its tyre

manufacturing capacity and avoid backward integration.

Efficient shop floor management, advance planning for

supply of raw material, economies of scale benefitsthrough large-volume production and High emphasis on

quality control.

The R & D policy is aimed at modifying and adapting

tyre technology to conform to the requirements of Indianroad conditions.


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CONT..

PERSONNEL AREA

Personnel policy is development oriented.

Managers down the line are provided systematic

exposure to technology.

Product Managers for each category of tyres.

Style of management is professional and policy matte

ers are decided by the top management and day-to-day

affairs are left to professional managers.

Cross-functional teams from different units contribute to

suggestions, leading to cost efficiency and productivity

improvements.


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OPERATIONAL

IMPLEMENTATION

Operational implementation is the approach adopted byan organization to achieve organizational effectiveness.

This is the time for action as this is the stage at which

the most tangible works get done.

It covers practically everything that is done in theorganization.

It is a major task of line managers.

The success of corporate and business strategies

crucially depends on how operational implementation isdone and in what way operational effectiveness is

achieved.


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CONT..

OPERATIONAL EFFECTIVENESS: It refers to anynumber of practices that allows a company to better

utilize its inputs. For example, reducing defects in

products or developing better products faster.

Four Areas or Four Ps of operational effecrtiveness: PRODUCTIVITY

PROCESSES

PEOPLE

PACE

These all are the major aspects of operational

implementation.


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STRATEGIC EVALUATION AND

CONTROL It is the final phase of strategic management.

Strategic evaluation operates at two-levels:

Strategic level: Concerned with the consistency of

strategy with the environment.

Operational level: The effort is directed at assessing how

well the organization is pursuing a given strategy.

Strategic control: Consists of setting standards,

measuring performance, analysing variances and taking

corrective actions


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CONT..

Four types of strategic control:

Premise control

Strategic surveillance

Special alert control

Implementation control


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CONT..

PREMISE CONTROL: Premise control is designedto check systematically and continuously whether the

premises on which the strategy is based are still valid

Environmental factors

Industry factors


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CONT..

STRATEGIC SURVEILLANCE: It is designed tomonitor a broad range of events inside and outside the

firm that are likely to affect the course of its strategy

Strategic surveillance must be kept as unfocused aspossible

Despite its looseness, strategic surveillance provides

an ongoing, broad-based vigilance in all dailyoperations


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CONT..

SPECIAL ALERT CONTROL: It is the thorough, andoften rapid, reconsideration of the firms strategy

because of a sudden, unexpected event

A drastic event should trigger an immediate andintense reassessment of the firms strategy and its

current strategic situation

Crisis teams

Contingency plans


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STRATEGIC EVALUATION AND CONTROL

AT THE APOLLO HOSPITALS NETWORK

Apollo Hospitals Enterprise Limited (AHEL) has thedistinction of being the first and the largest corporate

hospital network in INDIA.

Incorporated as a public limited company in 1979.

AHEL is basically a family-owned and family-managedorganization with Dr. Reddy as the executive chairman

and his three daughters holding the positions of

managing director ad executive directors of finance and

operations. Corporate strategy is of expansion through organic as

well as inorganic routes, to grow through acquisitions,

strategic alliances, iternationalisation and digitalisation


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CONT..

Focus is created through niches such as medical tourism,offering specialised healthcare facilities for foreigners

and non-resident Indians, particularly from U.S. and

global nursing staffing by education and training of

nurses. The Apollo network owns and manages more than 40

hospitals in India and some neighbouring countries.

The business portfolio of AHEL has speciality hospitals

and clinics, a chain of pharmacy retail outlets andconsultancy services for commissioning and managing

hospitals.


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CONT..

50 clinical departments for patient care and are managedby 7000 medical professionals

Introduced new services such as medical insurance,

telemedicine, healthcare business process outsourcing.

Strategic control appears to be centralised in theexecutive team led by Dr. Reddy.

The performance evaluation model at AHEL, called the

Apollo clinical excellence model, is based on the

identification of key performance areas such as clinicalprofessionals, support personnel, equipment, patients,

and environment of care.


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CONT..

Continuous improvement is reflected in: Allocation of resources

Setting up of systems

Formal daily meetings with managers

Open door policy of communication.

Instruments used to gather feedback:

Patient satisfaction surveys

Well-designed brochures

Interactive website

Grievance handling

Complaint boxes


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CONT..

Customers, co-workers and senior colleagues feedback constitute animportant component ofPerformance appraisal, done every six

months.

Standard operating procedures for healthcare processes

Reward system consisting of Monetary incentives, recognition,

staff support and counselling available.

Apollo network has certain advantages such as:

First-mover advantage

Large size

In-depth experience Brand equity

Widespread geographical presence


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Presentation Business Policy