MNG3702 Topic 1 Questions with 100% Correct Answers

1 Comment on the importance of strategy implementation as a component of the strategic management process. (5) Correct Answer The importance of strategy implementation in strategic management process is more about creating change that is timely and appropriate. Organisations could in the past make incremental changes to keep pace, but change is increasingly revolutionary and disruptive. Organisations have to deal with products being made obsolete in a very short space of time, and products have shorter life cycles. Moreover even if they are the leading competitor the disruption may come not from the competitors in the same industry, but from organisations in other industries that have a business model that is unexpected. Overall strategic change that is not managed well will have little value if plans are not implemented timely. As plans themselves may be obsolete by the time a strategic plan is implemented. Discuss five (5) reasons why strategy implementation in an organisation might fail. (5) Correct Answer 9/10 organisations fail to implement strategy successfully. Vision Barrier. Only 5% of the workforce understands the vision and strategy. Management Barrier. 85% of top management teams spend less than an hour on strategy. People Barrier. Only 25% of managers have rewards linked to strategy. Resource Barrier. 60% of organisations do not link budgets to strategy. Other reasons why strategy implementation might fail include: Inadequate resources. Poorly communicated strategy. Implementation actions that are not clearly defined. Unclear accountability for implementation actions and initiatives. Inadequate performance targets. Inadequate rewards. Poor leadership Distinguish between strategic planning and strategy implementation. (10) Correct Answer STRATEGIC PLANNING STRATEGY IMPLEMENTATION Takes place at top management level Responsibility of all managers Requires intuitive and analytical skills Requires motivational and leadership skills Strategic planning is a market driver activity Strategy implementation is an operations driver activity Focuses on effectiveness Focuses on efficiency Strategic planning is a thinking phase Strategy implementation is a action phase Explain the different type of strategic change and the issues involved. (10) Correct Answer Strategic change includes all the efforts and actions that are taking place to move an organisation from its present state toward the desired future state to increase its competitive position and its profitability. Strategic change is thus the implementation