ELEMENTS OF STRATEGIC MANAGEMENT, TY BBA (Marketing), VNSGU
CHAPTER 2
STRATEGY IMPLEMENTATION
DEFINITION & MEANING
According to Steiner, “The implementation of strategies is concerned with the design and management
of systems to achieve best integration of people, structures, processes and resources in reaching
organisational objectives”.
Strategic Implementation is a process of activating the strategy. It is the sum total of all the
activities required for execution of a strategic plan.
It is the process by which strategies & policies are put into action through the development of
programs, budgets and procedures.
Strategy implementation consists of acquiring resources, organizing resources and directing the
use of these resources within and outside the organisation.
------------------------------------------------------------------------------------------------------------------------------
McKINSEY’S 7S FRAMEWORK
INTRODUCTION:
- McKinsey’s 7S framework was developed in the early 1980s by Tom Peters and Robert
Waterman at the McKinsey & Company, a consulting firm in USA.
- This model was developed to find out the causes of organisational problems and to formulate
programs for improvement.
- The basic aspect of this model is that there are seven internal parts of an organisation. These
parts are to be aligned properly according to the objectives and goals if an organisation wants to
be successful.
- The 7-S model can be used in different situations, for example;
To help in improving the performance of a company
To examine the possible effects of future changes within a company
To align departments and processes during a merger or acquisition
To determine how best to implement a strategy
THE SEVEN ELEMENTS:
The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or
"soft" elements:
Hard Elements Soft Elements
Strategy Super-Ordinate Goals
Structure Skills
Systems Style
Staff
Dr. ZAKIR PATEL, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI
Mob: 9586075954
, ELEMENTS OF STRATEGIC MANAGEMENT, TY BBA (Marketing), VNSGU
"Hard" elements are easier to define or identify and management can directly influence them.
They are more tangible.
"Soft" elements can be more difficult to describe, and are less tangible and more influenced by
culture.
However, these soft elements are as important as the hard elements if the organisation wants to
be successful.
THE McKINSEY 7-S MODEL:
The way the model is presented in figure below shows the interdependency of the elements and indicates
how a change in one affects all the others. Let's look at each of the elements specifically:
Shared Values:
They are also known as super-ordinate goal. They are the core values of the company that can be seen in
the corporate culture and the general work ethics. Shared values of an organisation are the fundamental
ideas around which a business is built. They provide future directions to the organisation. ‘Shared
values’ is placed in the middle of the model. This is because these values are highly important in the
development of all the other critical elements. The company's structure, strategy, systems, style, staff
and skills are designed from why the organization was originally created, and what it stands for.
Strategy:
The plan formulated to maintain and build competitive advantage over the competitors is known as
strategy. Strategies are long-term plans of the organisation. It is important to design strategies keeping in
mind the SWOT analysis of the organisation.
Structure:
Organisational structure is the formal relationships among various positions in the organisation.
Organisation structure involves arrangements about reporting relationships, line of communication, rules
Dr. ZAKIR PATEL, NARAN LALA COLLEGE OF COMM & MNGT, NAVSARI
Mob: 9586075954
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller prafulpawar. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.99. You're not tied to anything after your purchase.