Marketing Management

7- Implementation
and Control

By: Ahmed El-Tagy

a_tagy@hotmail.com
www.eltagy.com
 The strategic Formulation
Strategy

A
Tactics
Goal
Goal B
VISION
Situation Analysis:
1.Environmental Strategic Choice:
Analysis 1.SWOT Analysis.
(PEST Analysis) 2.Porter Generic
2.Porter 5 Forces Feasibility Setting Implementation
strategies
3.Internal Analysis. Check Goals and Control
3.Ansoff Matrix.
4.Critical success 4.Grand Strategy.
Factors (CSF) 5.BCG Matrix.
 CHECK FEASIBILITY
• COSTS
• FEASIBILITY
• RESULTS
• MARKET REACTION: Consumer
Competitor
 FEASIBILITY CHECK of (TOWS output)
Option 1 Option 2 Option 3 Option 4

Costs

Projected
income
Feasibility

Competitive
reaction
Consumer
reaction
The Internal-External (IE) Matrix
 The Internal-External (IE) Matrix
• The IE Matrix is based on two key dimensions:
the IFE total weighted scores on the x-axis and
the EFE total weighted scores on the y-axis
• Three major regions
– Grow and build
– Hold and maintain
– Harvest or divest
• Construct a list of key factors, determining the success of the
organization's activities.
• For each factor, determine Weight in the numerical range,
from 0 (not important) to 1 (very important).
• The sum of all weights must be 1
• Weight marks the relative effect of each factor to influence
the success or failure of the enterprise in the industry.
• Assign for each factor a score. An important weakness is
represented by 1, 2 for minor weakness, 3 for minor
advantage, important advantages are represented by a score
of 4.
IFE

EFE
The IE Matrix
 The Grand Strategy Matrix
• Grand Strategy Matrix
– based on two evaluative dimensions: competitive
position and market (industry) growth
The Grand Strategy Matrix
 The Grand Strategy Matrix
• Quadrant I
– continued concentration on current markets (market
penetration and market development) and products
(product development) is an appropriate strategy
• Quadrant II
– unable to compete effectively
– need to determine why the firm’s current approach is
ineffective and how the company can best change to
improve its competitiveness
 The Grand Strategy Matrix
• Quadrant III
– must make some drastic changes quickly to avoid
further decline and possible liquidation
– Extensive cost and asset reduction (retrenchment)
should be pursued first
• Quadrant IV
– have characteristically high cash-flow levels and
limited internal growth needs and often can pursue
related or unrelated diversification successfully
 The Grand Strategy Matrix On Pepsico
Rapid Market Growth

Redefine the market

Developing new products

and markets
Pre-workout, post-workout
drinks
Strong
Competitive
position
Weak
Competitive
position

Partnership with
Taco bell

Slow Market Growth

The SPACE Matrix
The Strategic Position and Action Evaluation
(SPACE) Matrix
• Strategic Position and Action Evaluation
(SPACE) Matrix
– four-quadrant framework indicates whether
aggressive, conservative, defensive, or competitive
strategies are most appropriate for a given
organization
The Strategic Position and Action Evaluation
(SPACE) Matrix
• Two internal dimensions (financial position
[FP] and competitive position [CP])
• Two external dimensions (stability position
[SP] and industry position [IP])
• Most important determinants of an
organization’s overall strategic position
Factors That Make Up the SPACE Matrix Axes
 Steps to Develop a SPACE Matrix
1. Select a set of variables to define financial
position (FP), competitive position (CP),
stability position (SP), and industry position
(IP)
 Steps to Develop a SPACE Matrix
2. Assign a numerical value ranging from +1
(worst) to +7 (best) to each of the variables
that make up the FP and IP dimensions.
Assign a numerical value ranging from –1
(best) to –7 (worst) to each of the variables
that make up the SP and CP dimensions
 Steps to Develop a SPACE Matrix
3. Compute an average score for FP, CP, IP, and SP
4. Plot the average scores for FP, IP, SP, and CP on the
appropriate axis in the SPACE Matrix
5. Add the two scores on the x-axis and plot the
resultant point on X. Add the two scores on the y-
axis and plot the resultant point on Y. Plot the
intersection of the new xy point
 Steps to Develop a SPACE Matrix
6. Draw a directional vector from the origin of
the SPACE Matrix through the new
intersection point
– This vector reveals the type of strategies
recommended for the organization: aggressive,
competitive, defensive, or conservative
Example Strategy Profiles
Example Strategy Profiles
Objectives/Goals Formulation
 Strategy Implementation
• It is the process by which objectives, strategies
and policies are put into action through the
development of programs, budgets, and
procedures
 Strategy Implementation
1. Planning and allocating resources
2. Organization structure and design
3. Managing strategic change
 1- Planning and allocating resources

• What are the key tasks needing to be carried

out?
• What changes need to be made in the
resource mix of the organization?
• By when?
• And who is to be responsible for the change?
 2- Organization structure and design

• The changes in organizational structure

needed to carry through the strategy.
• What will different departments be held
responsible for?
• What sorts of information system are needed
to monitor the progress of the strategy?
• Is there a need for retraining of the
workforce?
 Developing Programs and Tactics

• The managers of divisions and functional areas work with their fellow
managers to develop programs, budgets, and procedures for the
implementation strategy.
• Program and Tactics
• The purpose of a program or a tactic is to make a strategy action-oriented
• A program is a collection of tactics
• A tactic is an individual actin taken by the organization as an element of the
effort to accomplish a plan.
• Tactic details how a strategy is to be implemented in terms of when and
were it is to be put into action
Structure follows strategy (Alfred Chandler)

Organizaitons follow a pattern of development from one kind of structural

arrangement to another as they expand.
These structural changes occur because the old structure have been
pushed too far.
Chandler proposed the following sequence of what occurs:
– New strategy is created
– New administrative problems emerge
– Economic performance declines
– New appropriate structure is invented
– Profit returns to previous level
 3- Managing strategic change
• managers in terms of the way they manage
change processes.
• changing day-to-day routines
• cultural aspects of the organisation,
• overcoming political blockages to change.
Monitor evaluate and take corrective action
 Strategic Control

Determine Establish Does Take

Measure
what predetermined performance corrective
performance
to measure standards match standard No action

Yes
Stop

• If undesired performance results because the strategic management processes were

inappropriately used, operational managers must know about it so that they can correct the
employee activity.
• Top management need not be involved. If, however, undesired performance results from
the processes themselves, top managers, as well as operational managers, must know
about it so that they can develop new implementation programs or procedures.
Thank You