Strategic Implementation

Student

Institution

Professor

Course

Date
 Strategic Implementation

Introduction

Strategies refer to plans, goals that organizations desire to achieve, or several goals

under uncertain conditions using the available resources. Basically, strategic implementation

is an essential factor that companies should consider before concluding their objectives

mission or visions. Mostly, they are implemented as per the culture or structure of a company

since they are responsible for the flow and management of stakeholders and operations

(Pidun, 2019).

To implement strategies effectively, the structure of a given organization must work

in coordination with different factors such as capabilities and diversification. It is achieved by

selecting implementation approaches related to company's structure and layout.

Implementing strategies is vital since it ensures success and improves corporations’ overall

profitability and productivity (Pidun, 2019). The success of an implementation is often

measured in part by how well a business strategy satisfies the needs of new and returning

customers over an extended period. First and foremost, management must articulate the

company's visions and values and develop an appropriate action to achieve the planned

structure.

Question 1

Explain the corporate structure and provide a review of its business portfolio.

Organization structure refers to a company of different departments or business units

within a company. It mainly defines how different activities are assigned or how information

flows from one department to another. For instance, how rules, and responsibilities flows.
Organization structure varies depending on the goals, visions, and objectives a certain

organization has. Understanding the structure of a company is essential especially in laying

the foundation of how a firm will be organized and managed. Additionally, it provides

framework that shows the role of each staff in that firm (Udo at el., 2012). Specifically, it

portrays how different staff from various department should interacts with each another to

achieve the company's goals. Simply, it reflects the working relationship that governs the

company's workflow and have a significant influence on its formation, and specialization.

Different companies prefer different structures. Most growing organizations prefer a

hybrid structure since it combines functional and divisional structures with two functional

levels. In this structure, CEOs are usually at the top. Every employee at all levels has to

perform to their specialization and constantly collaborate to achieve corporate goals and

values. Managers are responsible for planning and making strategic decisions. At the

functional level, there is a marketing director, director of HR, and director of finance, while

level two of the hierarchy is the programmers and supporting staff, where programmers are

assigned a task to search for clients and provide technical support to their clients. Such a

corporate structure ensures that each employee is assigned a specific task to perform

depending on the specialization (Udo at el., 2012).

A business portfolio is a group of assets and business units that confirm a given

company. It aids it in pursuing its strategic goals, in allocation of resources and in balancing

of portfolio. Mainly, balancing of portfolio guides organization on how to make changes in

businesses to achieve corporate goals. Organization tends to review their business portfolio

occasionally to determine operations that can fit in its core strategies (Udo at el., 2012). For

the reviews to be effective, a given company must conduct a resources analysis to ensure

whether the strategies are worth to the shareholders. Currently, companies analyze their

strategic approach to allocate their financial resources. The marketing director usually
develops a marketing plan that includes all available business units and products to determine

which products and businesses ate the ones with the most potential.

Question 2

What advice would you provide on using portfolio matrices, and which portfolio matrix
would you recommend: the GE McKinsey, BCG, or Ashridge matrix? Why?

Portfolio matrices are handy tools that aid in creating or coming up with the right

product portfolio decisions. Matrix-related charts are essential, especially when defining

products in terms of both the growth in their industry and their specific market share (Grant,

2021). Mostly, they aid in setting the business-unit strategy and formulating the business-unit

strategy. Mostly, performance targets set indicates performance outcomes in terms of cash

flow.

Boston Consulting Matrix is a portfolio matrix that I recommend for all organizations,

irrespective of the size. It provides a high-level methodology that enables one to see

opportunities for each product, especially in their portfolios. These include earnings, cash

flow, and strategies a company can implement to improve its performance. Moreover, this

portfolio matrix aspect assists business managers in companies to develop a better

understanding relating to strategic business units. This portfolio contains four quadrants

representing different concepts. The cash cows' first quadrant implies growth but with a

higher share in the business market. Additionally, it helps companies to generate maximum

profits hence is among the essential stage in the BCG portfolio (Grant, 2021). The dog

quadrant is characterized by low and unstable earnings, neutral or negative cash flow, and a

divest strategy. The organization uses this quadrant to analyze its potential to develop a

certain business into a star.

 Question 3

Apply your recommended portfolio matrix and provide a portfolio analysis.

I will primarily use the BCG matrix internally tool in a corporate strategy to analyze

business units or products since it will enable me to allocate limited resources to the portfolio

to maximize profit over a long period. Mainly, the analysis is done based on market share and

market growth rate. The organization usually plots its business units differently depending on

its objectives. For instance, some organizations allocate extra resources to expand their

market share (Udo at el., 2012). Particularly, I will utilize it in making an investment decision

on a corporate level depending on which quadrant the organization is currently operating;

stars, question marks, cash cows, and dogs. In the star quadrant, companies’ earnings are

stable and growing, the cash flow is neutral, and a company can confidently invest for

growth. Additionally, star generates a large share and requires huge investment compared to

cash cows. A large investment is essential for an organization to remain competitive and

maintain its growth rate.

Cash cows are an organization that are characterized by low-growth and strong-

competitive positions. Moreover, the business generates excess revenue compared to its

investment needs. However, it’s the most dangerous position a company can be in since its

market growth is likely to decline and revenues to stagnate. Additionally, a company is

probable to transform into cash cows at the star level. Both dogs and question mark levels

represent companies with low-growth and weak competition. Portfolio analysis is mostly

used to identify optimal strategies for category sourcing at different levels.

Question 4

How does diversification create value through the linkages between businesses?
 Diversification is technique organizations use to reduce risks by allocating investment

among various financial instruments, industries, and other categories. It has become popular,

especially across products and markets, due to economies of scale and scope (Bowen at el.,

2015). Organizations can diversify in different ways to gain a market advantage or increase

their profitability. Mainly, a competitive advantage is an advantageous position a certain

company can have over its competitors. It can gain by providing consumers with a great

value for their money through product and services differentiation or lower prices

Additionally, it increases organization profitability through greater sales volume. Particularly,

it is implemented to eliminate unprofessional risk.

Diversification usually creates value through the linkages between businesses. For

instance, organizations tend to diversify by acquiring a company in a related product market

can enable the organization to reduce its technological, production, or market risks. Mostly,

business risks are altered or translated into a less variable income stream for the company;

through this channel, linkages and values between businesses are created (Bowen at el.,

2015). Additionally, linkages are created when a company merges with another company or

starts exploring new markets outside the current organization's scope. This happens when an

organization tries to take advantage of a new position or improve its products' quality.

However, diversification may be uncertain. Therefore companies must decide whether to deal

with related or unrelated businesses. Additionally, it can consider the need for expansion by

initiating new business or purchasing an ongoing business. Both instances result in linkages

in businesses.

Conclusion
 In summary, diversification strategy, especially in the organization, is essential since

it provides better opportunities for the organization to venture into new or expand its

activities outside its scope. Specifically, it is a corporate strategy that increases the

organization's knowledge, experience, and profitability by dealing with a greater volume of

products. To implement strategies effectively, the structure of a given organization must work

in coordination with different factors such as capabilities and diversification.

 References

Grant, R. M. (2021). Contemporary strategy analysis. John Wiley & Sons.

Pidun, U. (2019). Corporate strategy: Theory and practice. Springer.
Udo-Imeh, P. T., Edet, W. E., & Anani, R. B. (2012). Portfolio analysis models: a
review. European Journal of Business and Management, 4(18), 101-120.
Bowen, H. P., Baker, H. K., & Powell, G. E. (2015). Globalization and diversification
strategy: A managerial perspective. Scandinavian Journal of Management, 31(1), 25-
39.