MNG302B – Exam Prep
Topic 1: Strategy Implementation
1. Explain what Strategy implementation entails (5)
• Strategy implementation can be defined as the process that turns selected
strategy into action to ensure that the stated goals (aligned with the vision and
mission) are accomplished.
• Strategy implementation deals with translating the strategic plan into action.
• It is the phase in which management aligns or matches strategic leadership,
organisational culture, organisational structure, reward systems, policies and
resource allocation with the chosen strategy or strategies.
• It is an essential component of the strategic management process, as it deals
with the strategic change required within an organisation to make the new
strategy work and to achieve the desired results.
• It is the most difficult part of the strategic management process.
2. Differentiate between strategic planning and strategic implementation (8)
Strategic Planning Strategy implementation
1 Is the intellectual or thinking phase The thinking phase in which these
thoughts are operationalized and
turned into action.
2 Is mostly a market driven activity Is an internal, operational driven
with an external focus activity.
3 Requires good intuitive and Requires strong motivation and
analytical skills leadership skills.
4 Well structured, rational and Not so well structured, rational and
controlled controlled.
5 Takes place at top management The responsibility of all levels of
and senior management management and the entire work
force is involved.
6 Focus on effectiveness Focus on efficiency
7 Positioning forces before the action Managing forces during the action
8 Requires co-ordination among a few Requires co-ordination among many
individuals individuals
,3. Comment on the importance of strategy implementation as a component of the
strategic management process (5)
• Strategy implementation is an essential part (the most important part) of strategic
management process.
• Is the process that turns strategic plans into a series of actions tasks and ensures
that these tasks are executed in such a way that the objectives of the strategic
plan are achieved?
• It entails the communication, interpretation, adoption and enactment of strategic
plans.
• It is the phase in which management aligns strategic leadership, organisational
culture, organisational structures, reward systems, policies and resource
allocation with the chosen strategy.
• It involves taking management form thinking to actually doing.
• It is also an important source of competitive advantage.
4. Discuss the problems organisations experience when attempting to implement
their chosen strategy (8) / Discuss 5 reasons why strategy implementation fails
(5)
• There is no alignment between the organisational structure and the strategy.
• The information and communication systems are inadequate to report on the
progress with strategy implementation.
• The coordination of implementation efforts was not sufficiently effective.
• The leadership and direction provided by top and middle managers was
inadequate.
• Goals were not sufficiently defined and not well understood by employees.
• The formulators of the strategy were not involved in implementation or left before
the implementation was complete.
• Key changes in the responsibilities of employees were not clearly defined.
5. Discuss the barriers to successful strategic implementation (5)
• Vision Barrier
• Failure to communicate the vision and strategy may confuse the work
force.
• If lower levels of management and the work force do not know or
understand the organisations vision and strategy, they won’t understand
their role in the implementation process.
• Management Barrier
• Too often executives are focused on solving short term problems and not
enough time is spent on strategic management.
• Some executives that were promoted from the functional areas and tent to
remain involved in functional issues.
• Resource Barrier
• Resource allocation plans or budgets are not linked to the chosen
strategies.
• Resources are not allocated in support of the strategy.
• People Barrier
• About 75% of managers do not have rewards and incentives inked to
strategies.
• Key responsibilities of employees are not clearly defined.
, 6. Strategy implementation and corporate governance (4)
• It is the responsibility of the board of directors of an organisation to define the
purpose of the organisation and to identify the stakeholders relevant to the
business of the organisation.
• The board has to formulate a strategy based on these factors.
• The King Report states that it is the board’s responsibility to ensure that
management mot only implements the formulated strategy, but also monitors that
implementation.
• Strategy implementation should take issues such as social responsibility,
environmental responsibility, stakeholder engagement and sustainability into
consideration at all times.
7. Explain the different types of strategic change and the issues involved (10)
Different Types
• Adaption. The current organisational setting can facilitate the incremental
change that must happen in order to achieve the desired goals. It is only
necessary to adapt to this new situation.
• Reconstruction. The current organisational setting can handle a change that
involves a sudden alteration in the market conditions. It may be that only the
reconstruction of processes and policies is required to implement the new
strategy.
• Evolution. This strategy involves fundamental changes in the way the
organisation has to deal with the situation, but it can happen over time.
• Revolution. The strategy involves fundamental changes as a result of sudden
and fast-changing conditions.
Issues of Change
• Time. How quickly is change needed; does the organisation have time to
change?
• Scope. What is the scope of change needed? Is dramatic revolutionary change
needed, or only a moderate change.
• Diversity. What is the level of homogeneity in the organisation? A
heterogeneous workforce can hamper change.
• Capacity. Does the organisation have the capacity in terms of the resources
needed to change.
• Readiness. Are the employees ready for change? This also refers to the level of
resistance to change.
• Capability. Do the organisation’s employees and managers have the capabilities
to implement change?
8. Briefly comment on the strategic change process
• Identify the areas of change
• Manage resistance to change
• Using Power and influence to persuade member of the organisation to support
the changes.
• How to become a learning organisation.
Topic 1: Strategy Implementation
1. Explain what Strategy implementation entails (5)
• Strategy implementation can be defined as the process that turns selected
strategy into action to ensure that the stated goals (aligned with the vision and
mission) are accomplished.
• Strategy implementation deals with translating the strategic plan into action.
• It is the phase in which management aligns or matches strategic leadership,
organisational culture, organisational structure, reward systems, policies and
resource allocation with the chosen strategy or strategies.
• It is an essential component of the strategic management process, as it deals
with the strategic change required within an organisation to make the new
strategy work and to achieve the desired results.
• It is the most difficult part of the strategic management process.
2. Differentiate between strategic planning and strategic implementation (8)
Strategic Planning Strategy implementation
1 Is the intellectual or thinking phase The thinking phase in which these
thoughts are operationalized and
turned into action.
2 Is mostly a market driven activity Is an internal, operational driven
with an external focus activity.
3 Requires good intuitive and Requires strong motivation and
analytical skills leadership skills.
4 Well structured, rational and Not so well structured, rational and
controlled controlled.
5 Takes place at top management The responsibility of all levels of
and senior management management and the entire work
force is involved.
6 Focus on effectiveness Focus on efficiency
7 Positioning forces before the action Managing forces during the action
8 Requires co-ordination among a few Requires co-ordination among many
individuals individuals
,3. Comment on the importance of strategy implementation as a component of the
strategic management process (5)
• Strategy implementation is an essential part (the most important part) of strategic
management process.
• Is the process that turns strategic plans into a series of actions tasks and ensures
that these tasks are executed in such a way that the objectives of the strategic
plan are achieved?
• It entails the communication, interpretation, adoption and enactment of strategic
plans.
• It is the phase in which management aligns strategic leadership, organisational
culture, organisational structures, reward systems, policies and resource
allocation with the chosen strategy.
• It involves taking management form thinking to actually doing.
• It is also an important source of competitive advantage.
4. Discuss the problems organisations experience when attempting to implement
their chosen strategy (8) / Discuss 5 reasons why strategy implementation fails
(5)
• There is no alignment between the organisational structure and the strategy.
• The information and communication systems are inadequate to report on the
progress with strategy implementation.
• The coordination of implementation efforts was not sufficiently effective.
• The leadership and direction provided by top and middle managers was
inadequate.
• Goals were not sufficiently defined and not well understood by employees.
• The formulators of the strategy were not involved in implementation or left before
the implementation was complete.
• Key changes in the responsibilities of employees were not clearly defined.
5. Discuss the barriers to successful strategic implementation (5)
• Vision Barrier
• Failure to communicate the vision and strategy may confuse the work
force.
• If lower levels of management and the work force do not know or
understand the organisations vision and strategy, they won’t understand
their role in the implementation process.
• Management Barrier
• Too often executives are focused on solving short term problems and not
enough time is spent on strategic management.
• Some executives that were promoted from the functional areas and tent to
remain involved in functional issues.
• Resource Barrier
• Resource allocation plans or budgets are not linked to the chosen
strategies.
• Resources are not allocated in support of the strategy.
• People Barrier
• About 75% of managers do not have rewards and incentives inked to
strategies.
• Key responsibilities of employees are not clearly defined.
, 6. Strategy implementation and corporate governance (4)
• It is the responsibility of the board of directors of an organisation to define the
purpose of the organisation and to identify the stakeholders relevant to the
business of the organisation.
• The board has to formulate a strategy based on these factors.
• The King Report states that it is the board’s responsibility to ensure that
management mot only implements the formulated strategy, but also monitors that
implementation.
• Strategy implementation should take issues such as social responsibility,
environmental responsibility, stakeholder engagement and sustainability into
consideration at all times.
7. Explain the different types of strategic change and the issues involved (10)
Different Types
• Adaption. The current organisational setting can facilitate the incremental
change that must happen in order to achieve the desired goals. It is only
necessary to adapt to this new situation.
• Reconstruction. The current organisational setting can handle a change that
involves a sudden alteration in the market conditions. It may be that only the
reconstruction of processes and policies is required to implement the new
strategy.
• Evolution. This strategy involves fundamental changes in the way the
organisation has to deal with the situation, but it can happen over time.
• Revolution. The strategy involves fundamental changes as a result of sudden
and fast-changing conditions.
Issues of Change
• Time. How quickly is change needed; does the organisation have time to
change?
• Scope. What is the scope of change needed? Is dramatic revolutionary change
needed, or only a moderate change.
• Diversity. What is the level of homogeneity in the organisation? A
heterogeneous workforce can hamper change.
• Capacity. Does the organisation have the capacity in terms of the resources
needed to change.
• Readiness. Are the employees ready for change? This also refers to the level of
resistance to change.
• Capability. Do the organisation’s employees and managers have the capabilities
to implement change?
8. Briefly comment on the strategic change process
• Identify the areas of change
• Manage resistance to change
• Using Power and influence to persuade member of the organisation to support
the changes.
• How to become a learning organisation.
