IB Business & Management Topic 6 – Strategy HL ONLY

Understand the meaning of business strategy and strategic management Discuss the three key elements of the strategic framework – Strategic analysis, Strategic choice, Strategic implementation Recommend and evaluate business strategy in a variety of business contexts

Strategic Implementation

Without effective implementation there can be no effective change within an organisation Implementing a major strategic change is a very important cross functional management task

Strategic Implementation Involves ensuring that all the following factors are in place: – Appropriate organisational structure to deal with the change – Adequate resources – Well motivated staff – Leadership style and culture that will allow change to happen – Control and review systems to monitor the firms progression towards the desired final objectives

Strategic Implementation Processes used and issues raised by strategic implementation: – Planning for changes in size – Implementation of marketing strategies – Reviewing management\leadership styles – Adoptions of corporate social responsibility and ethical approaches – Strategies to globalise operations – Management of change

Corporation Culture & Strategic implementation How does a corporation's culture affect a strategic implementation? – Consider how different organisations with different cultures introduce important changes – EG. Business with power culture wont consult or communicate with staff, the changes will be imposed on them, this approach could stir up resentment – EG. Businesses that operate with task or people based cultures more likely to encourage participation and staff may be willing to accept chnage

Corporation Culture & Strategic implementation Strong and weak culture Promotes and facilitates successful strategy implementation. Widespread sharing of common beliefs, practices and norms within the business. Nearly everyone has accepted what the business stands for. This energises people to promote successful strategy as they will want it to be successful. Employees may have no agreed set of beliefs and there is no pride in ownership of work. People may form their own groups within this type of organisation, based around cultures that conflict with the weakly expressed business culture. Provide little or no assistance to strategic implementation.

Evaluating the importance Significance and power of an organisations culture to drive people’s behaviour and attitudes shouldn’t be underestimated Most employees do not want to be seen as doing the ‘wrong thing’

Evaluating the importance Examples The values of a business establish the norms of behaviour of staff – what is acceptable and what isn't, is it acceptable for an organisation to accept bribes ‘as long as we are not found out’? Culture determines the way in which company managers and workers treat each other, if CEO is open and receptive to new ideas and proposals from senior managers, then this will filter through the whole organisation

Evaluating the importance Distinctive organisational culture can support a business’s brand image Culture determines not just how strategic decisions are made and implemented but also the type of strategic decisions that are taken Organisational culture has been clearly linked to the economic performance and long term success of organisations. Businesses dedicated to continuous improvement with staff involvement have been shown to be more profitable in the long term