Exam Prep Notes
,MNG3702 – 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.