Strategic Implementation

and Control
Strategic Management

Presentation By:
Mr. Gajendra Bahadur Thapa (Roll No.: 431)
Mr. Basanta Singh Dhami (Roll No.: 434)
Mr. Binod Adhikari (Roll No.: 443)
Section: ”D”
MBS 4th Semester
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Overviews
 Process of strategy Implementation
 Organization structures for strategy implementation
 Management system: leadership, motivation, and organizational culture
 Managing strategic change: diagnosing the change situation, change management, levels of
strategic change
 Strategy control: evaluation and control, measuring performance, appropriate measures;
Types of control: operational control and strategic control
 Characteristics of an effective evaluation and control

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Strategic
Implementation

Strategic implementation is the act

of translating chosen strategy into
action.

Strategic implementation is the

process of execution of the
selected strategy to achieve
strategy goals and objectives.

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Process of Strategic Implementation
Step:1
Step:2 Development Step:3 Development
Evaluation and of an implementation of support policies
communication of structure. and programs.
the strategic plan.

Step:5 Step:4
Discharge of Budgeting and
Department and allocation of
activities. resources.

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Organization structure for
strategy implementation

 An organization is the group of people working

together in a coordinated effort to attain a set of
objectives.
 The strategy and organizational structure for
strategy implementation must have close
relationship like two-way traffic.

Following are some of the major type of

organizational structure for strategy implementation:

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 Owner as
CEO/Manager

Finance and
1. Simple Structure Production
Department
Marketing
Department
Accountancy
Department

Advantages Disadvantages

a) Direct control a) No division of authority and responsibility

b) High motivations b) Ineffective for large size organization
c) Direct communication c) Difficult to manage HR effectively
d) Rapid decision making
e) Suitable for SMEs like restaurants.

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 CEO

Accounting and R&D and

2. Functional Structure
Production Marketing
Finance Engineering
Department Department
Department Department

Advantages Disadvantages

a) Fixed authority and responsibility a) Coordination between the department is

b) Specialists in top and middle level difficult.
c) Simplified control/direct supervision b) Overburden of CEO/MD
d) Differentiates and delegates day-to-day c) Encourage Interdepartmental conflict
operating decisions d) Difficult to cope with diversity

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 Chief Executive
officer

SBU (Product A) SBU (Product B) SBU (Product C) SBU (Product D) SBU (Product E)

Functions Functions
Functions Functions Functions

3. Multi-Divisional Structure
Advantages Disadvantages

a) Facilitates the measurement of SBUs a) Increase coordination problem

performance b) Conflict between divisions
b) Focus on client needs c) Costly
c) Facilitates top management attention to d) Increase difficulty of establishing uniformity in
strategy company wide
d) Possibility of management development

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 Chief Executive
Officer

General Manager
General Manager General Manager
SBU C: Food &
SBU A: Education SBU B: Hospital
Beverage

4. Strategic Business Unit (SBU) Structure

MBA Cardiac Grocery

Nursing Paediatric Oil

Advantages Disadvantages
Engineering Maternity Noodles

a) Support cooperation between the departments
b) Improvement of strategic management
c) Improvement of accounting operations
d) Easier planning of activities
a) Difficulty with contact with higher level of
management
b) May create of tension due to access of fund
c) May be the slow transmission of management
activities

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 Parent
Company Head
Office

Company A Company B Company C

5. Holding Company Structure

(Wholly Owned) (75% Owned) (51% Owned)

Advantages Disadvantages

a) Low Central overheads a) Holding companies can come with reduced

b) Offering of individual business losses
c) Holding companies protect the parent
company from losses by subsidiaries.
d) Parent companies can take advantage of
regional taxation laws by moving the holding
company and subsidiaries to different
jurisdictions.
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transparency, making it harder for investors
and creditors to assess the health of the
enterprise.
b) Parent companies can abuse their subsidiaries
by forcing them to trade with one another at
non-market prices.
c) Parent companies can also force their
subsidiaries to appoint chosen directors or
change their policies.
 Chief
Executive
Officer

General General General

Manager Manager Manager
Project A Project B Project C

Administration Administration Administration

6. Project Based Structure

Finance Finance Finance

Advantages
Construction Marketing Construction

a) Low Central overheads
b) Offering of individual business losses
c) Holding companies protect the parent
company from losses by subsidiaries.
d) Parent companies can take advantage of
regional taxation laws by moving the holding
company and subsidiaries to different
jurisdictions.
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Disadvantages
a) Holding companies can come with reduced
transparency, making it harder for investors
and creditors to assess the health of the
enterprise.
b) Parent companies can abuse their subsidiaries
by forcing them to trade with one another at
non-market prices.
c) Parent companies can also force their
subsidiaries to appoint chosen directors or
change their policies.
7. Matrix Structure for Multinational
Company

Advantages

a) Very useful when the external environment is

complex and changeable
b) Improves the quality of decisions
Disadvantages
c) Direct communication
a) Time taken for decisions
d) Improve motivation and management
b) Unclear responsibility
development
c) Dilution of priorities
e) Maximum use of limited functional specialist d) Possible conflict between separate operating
systems

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 Team B
Team A
8. Team-based Structure
Team
Advantages
C
Disadvantages
a) Help to capitalize employees’ strengths and a) Potential for conflict
minimize their weaknesses. b) Under performing employees hide behind team
b) Foster better communication c) Some people are not team players
c) Resolve problem quicker
d) Comparatively low cost and time
e) Flexible and empowered workplace

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Management System:
Leadership, Motivation and Organization Culture
Establishment of effective management system is required for successful implementation of
strategy. The management system require better leadership, motivation and organization culture.
 Leadership- An ability of influencing people after developing organizational vision
and goal to achieve it.
 Motivation- A force that help to inspire employees to implement strategy through
planned way.
 Organization Culture- The combination of values, attitudes, beliefs and
expectations which foster fair practices to achieve
organization goal through strategy implementation.

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Managing Strategic Change
 Strategic change is the process of shifts in organization’s policies, target market, mission or
structure.
 It is related with restructuring of an organization’s strategic plan that is typically performed
to achieve objectives more effectively and efficiently.
 Peter Drucker was the first pioneer who coined the term ‘Age of Discontinuity’.
 The term ‘Age of Discontinuity’ refers to Globalization, Cultural Pluralism, Knowledge
Capital, and New Technologies etc.

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Process of Strategic Change

Step 1 Step 2 Step 3 Step 4

Understanding Diagnosing Managing strategic Leadership and
types of strategic strategic change change process change agency
change needs • Change in structure, • Leading to change and
• Adaption, • Study organizational control mechanism, the agencies are top,
Reconstruction, culture, responsive style, organizational middle, lower managers
Evolution, Revolution group, prevailing law routine, communication and external
and stakeholders style, tactics stakeholders

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Strategic Evaluation
 Strategic Evaluation is the assessment process to collect performance
about program, project, activities designed to meet business goals and
objectives.
Process
Step 1: Fixing benchmark of performance
Step 2: Measurement of performance
Step 3: Analyzing deviation
Characteristics
1. Economical
2. Reliability
3. Sustainability
4. Comparability
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5. Suitability
Strategic Control
 Strategic control is the process used to control the formulation
and implementation of strategic plans.
 Strategic control at the strategic level not only answers the
question ‘have we made the right strategic choices at some time
in the past?’ but also how well are we doing now and how well
will we be doing in the immediate future for which reliable
information is available?
Characteristics
1. Feedback
2. Economical
3. Result oriented
4. Beneficial
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5. Report deviations
Types of Strategic
Control

Types of
Strategic
Control

A. Operational B. Strategic
Control Control

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A. Operational Control

 An Operational control systems are designed to ensure

that day-to-day actions are consistent with established
plans and objectives.
 Operational control systems ensure that activities are
consistent with established plans.
 Operational control is the process of managing and
controlling an organization's day-to-day operations.
 It focuses on events in a recent period.

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Steps in Operational Control

1 2 3 4
Step 1: Establish Step 2: Measurement of Step 3: Compare with Step 4: Corrective Actions
Performance Standard Actual Performance Standard and find
• Tangible Standard (Profit, Cost, deviations
Revenue, Sale etc.)
• Intangible Standard (Employee
morale, Goodwill, Manager
competency)

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B. Strategic Control
 Strategic control is a management and business strategy process that involves
tracking and monitoring an organization's strategy as it is being implemented.
 It involves detecting any problems or potential issues as early as possible and taking
corrective action.
 Strategic control is concerned with tracking the strategy as it is being implemented,
detecting problems or changes in the premises and making necessary adjustments.

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 Study the assumptions taken
Premise Control at the time of strategy
formulation are change or not.

Implementation Study the formulated plans,

Types of Strategic Control

programs and projects are
guiding toward goal or not .

Control
Designed to monitor of
internal and external
Strategy Surveillance environment which might
bring threats.

A mechanism for a quick

response and urgent
Special Alert Control reassessment of the strategy in
the light of sudden and
unexpected events.

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 Thank You !

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