Amity School of Business

Business Policy and Strategic

Management

Prof. Ruchi Khandelwal

Semester VI
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https://www.youtube.com/watch?v=1QsoIBkU35c

https://www.youtube.com/watch?v=c_dxWKQxjIs

https://www.youtube.com/watch?v=7WXZMStAQqg
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How Walmart maintain their culture?

 Walmart sees corporate culture as a key
business strategy.
 Walmart engages frontline leaders to support its
culture.
 Walmart maintains consistent global
communication of its culture.
 Walmart aligns its people systems.
 Walmart conducts its business with an emphasis
on culture every day.
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Organizational Leadership
 The process and practice by key executives of guiding
and shepherding people in an organization towards a
vision over time and developing that organization’s
future leadership and organizational culture.
 Leadership challenge:
– to galvanize commitment among people within an
organization as well as stakeholders outside the organization
– to embrace change and
– implement strategies intended to position the organization
to succeed in a vastly different future
 Leaders help their company embrace change through
clarifying strategic intent, building an organization and
shaping organizational culture.
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Clarifying Strategic Intent

 Leaders help their company embrace change by
setting for their strategic intent—a clear sense
of where they want to lead the company and
what results they expect to achieve
 Leader’s vision—an articulation of a simple
criterion or characterization of what the leader
sees the company must become to establish and
sustain global leadership
 Make clear the performance expectations a
leader has for the organization, and managers in
it, as they seek to move toward that vision
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Building an Organization
 Education and leadership development is the
effort to familiarize future leaders with the skills
important to the company and to develop
exceptional leaders among the managers you
employ
 Principles are your fundamental personal
standards that guide your sense of honesty,
integrity, and ethical behavior
 Perseverance is the capacity to see a commitment
through to completion long after most people
would have stopped trying
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Shaping Organizational Culture

 Passion, in a leadership sense, is a highly
motivated sense of commitment to what
you do and want to do
 Leaders also use reward systems, symbols,
and structure among other means to
shape the organization’s culture
 Leaders look to managers they need to
execute strategy as another source of
leadership to accept risk and cope with
the complexity that change brings about
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Organizational Culture
 Organizational culture is the set of important assumptions (often unstated)
that members of an organization share in common. Assumptions become
shared assumptions through internalization among an organization’s
individual members
 Shaping organizational Culture
– Emphasize key themes or dominant values
• McDonald's emphasis on QSCV
– Encourage dissemination of stories and legends about core values
• 3M’s innovation stories
– Institutionalize practices that systematically reinforce desired beliefs
and values
• McDonald’s contest for best hamburger cook
– Adapt some very common themes in their own unique ways
• GE- “better than the best”
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The 7-S framework

 Developed in the early 1980s by Tom Peters and Robert
Waterman, two consultants working at the McKinsey &
Company consulting firm, the basic premise of the model is
that there are seven internal aspects of an organization that
need to be aligned if it is to be successful.
 The 7S model can be used in a wide variety of situations
where an alignment perspective is useful, for example to
help:
– Improve the performance of a company.
– Examine the likely effects of future changes within a
company.
– Align departments and processes during a merger or
acquisition.
– Determine how best to implement a proposed strategy.
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The Model
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The 7 S
 The Hard S’s (called so, because they are feasible &
easy to identify)
– Strategy
– Structure
– Systems
 The Soft S’s (difficult to describe since capabilities,
values and elements of corporate culture are
continuously developing and changing)
– Style / Culture
– Staff
– Skills
– Shared Values / Super ordinate Goals
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Establishing Strategic Controls

 Strategic control is concerned with tracking a
strategy as it is being implemented,
detecting problems or changes in its
underlying premises, and making necessary
adjustments.
 Types of Strategic Controls
– Premise control
– Strategic surveillance
– Special alert control
– Implementation control
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Four Types of Strategic Control

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
Types of Control
Premise control is designed to check systematically and continuously
whether the premises on which the strategy is based are still valid.
– Planning Premises
• Environmental factors
• Industry factors
 Strategic surveillance is designed to monitor 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 as possible
– Despite its looseness, strategic surveillance provides an ongoing, broad-based
vigilance in all daily operations .
 A special alert control is the thorough, and often rapid, reconsideration of
the firm’s strategy because of a sudden, unexpected event.
– A drastic event should trigger an immediate and intense reassessment of the
firm’s strategy and its current strategic situation.
– Tools to manage
• Crisis teams
• Contingency plans
 Implementation control is designed to assess whether the overall strategy
should be changed in light of the results associated with the incremental
actions that implement the overall strategy.
– Monitoring strategic thrusts
– Milestone reviews
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Characteristics of Strategic Control