Summary
Summary OBS 330 block 7
- Course
- OBS 330 (OBS330)
- Institution
- University Of Pretoria (UP)
Fully summarised block 7 for semester test 1 and the exam. I used class notes, lecture slides, the textbook and past notes.
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OBS 330:Block 7
, CHAPTER LEARNING OBJECTIVES
1. When and how business diversification can enhance shareholder value
2. How related diversification strategies can produce cross business strategic fit capable of delivering
competitive advantage
3. The merits and risks of unrelated diversification strategies
4. The analytic tools for evaluating a company’s diversification strategy
5. What four main corporate strategy options a diversified company can employ for solidifying its
strategy and improving company performance
IMPLEMENTING STRATEGY
COMPANY STRATEGY is the set of actions that managers take to outperform the
company’s competitors and achieve superior profitability.
A company strategy is all about selecting the right staff (a strong management team
as well as recruiting and retaining talented employees), resources, and capabilities
(developing a set of resources and capabilities suited to the current strategy, updating
resources and capabilities as external conditions and the firm’s strategy change,
training and retraining company personnel to maintain knowledge-based and skills-
based capabilities).
Why crafting and implementing a strategy are top priority managerial tasks?
- A clear and reasoned strategy is management’s prescription for doing business, its
road map to competitive advantage, its game plan for pleasing customers, and its
formula for improving performance
- High-performing companies are nearly always the product of astute, creative, and
proactive strategy making
Good strategies enable an organisation to achieve its objectives and they are the
most telling and trustworthy signs of good management.
GOOD The twin standards of good strategy making and good strategy
implementation to determine whether a company is well managed is: the better
conceived a company’s strategy and the more competently it is implemented, the
more likely the company will
be a standout performer in the marketplace.
BAD A company that lacks clear-cut direction, has a flawed strategy, or cannot
execute its strategy competently is a company whose financial performance is
probably suffering, whose business is at long-term risk, and whose management is
sorely lacking.
A PLAN Is an arrangement, a pattern, a program or a scheme for a definite purpose. A
plan is very concrete in nature and doesn’t allow for deviation. If “Plan A” doesn’t
work, you don’t alter “Plan A” and try again but rather move to “Plan B”; something
totally different
A STRATEGY is a blueprint, layout, design or idea used to accomplish a specific goal. It
is very flexible and open for adaptation and change when needed.
, LO 1 THE DIFFERENCE BETWEEN STRATEGY IMPLEMENTATION AND EXECUTION.
STRATEGY FORMULATION is deciding what to do. It includes developing a vision
and mission, identifying an organisation’s external opportunities and threats,
determining internal strengths and weaknesses, generating alternative strategies, and
then choosing particular strategies to pursue. Visit the UK
The transition from strategy formulation to strategy implementation requires a shift in
responsibility from strategies to divisional and functional managers.
STRATEGY IMPLEMENTATION is the process of executing what you have planned to do.
It refers to the process of moving an idea from concept to reality and building rather
than the design of a process. It consists of all the decisions and activities required to
action strategic choices. Strategy implementation will differ between types and sizes
of organisations. Book the flights, transport and accommodation
Strategy Implementation Process:
1. Refine vision and strategies 4. Present to board/ senior management:
2. Craft individual implementation programs ratification
3. Integrate implementation programs 5. Implement
6. Revise annually
STRATEGY EXECUTION is the act, manner or style of executing those processes by
means of actions, manoeuvres, and performances. It refers to accomplishing
something and seeing it through to completion. It refers to the decisions and activities
undertaken to turn your implemented strategy into commercial success. It considers
the way in which the process is fulfilled (how?). Strategy execution is often
incorporated into the strategy implementation process. Get on the plane and go to the
UK
Class notes:
It’s not strategy unless there is a trade-off: you must choose one option over the other (forego
something to pursue something else)
Each step is very different. Bad execution = strategy wasn’t materialised
Success rate of strategy execution is very low Strategy execution = successful strategy
Set your objective, create your task and then measure. Your key result.
LO 2 DESCRIBE THE INTERDEPENDENCE OF STRATEGY FORMULATION AND
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