1. Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues
Chapter 6

2. Stages of Strategic Management
Strategy formulation
Strategy implementation
Strategy evaluation
The strategic-management process consists of three stages: strategy formulation, strategy implementation,
and strategy evaluation.
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4. Strategy Implementation
Sum total of the activities and choices required for the execution of a strategic plan.
Process by which strategies and policies are put into action through programs, budgets, and procedures.

5. Strategy Implementation
Implementation Process Questions:
Who are the people to carry out the strategic plan?
What must be done to align operations with new direction?
How is work going to be coordinated?

6. Strategy implementation
requires a firm to establish annual objectives, create policies, motivate employees, and allocate resources so that formulated strategies can be implemented.
often called the action stage
Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed and is often called the action stage
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7. Resources and Competencies
Strategy implementation depends on resources and competencies possessed by the firm.
These include:
Money in certain amounts.
Particular types of equipment.
Specified numbers of people with …
Certain skills, capabilities, and competencies
Control and reporting systems.

8. Seven Actions of Implementing Strategy
Allocate resources.
Institute policies.
Pursue best practices and continuous improvement.
Information and operating systems.
Rewards to strategy and goals.
Shape corporate culture.
Apply leadership.

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Annual Objectives
Annual objectives
short-term objectives that organizations must achieve to reach long-term objectives.
should be measurable, quantitative, challenging, realistic, consistent, and prioritized.
should be established at the corporate, divisional, and functional levels in a large organization.
Annual objectives are short-term milestones that organizations must achieve to reach long-term objectives.
They should be measurable, quantitative, challenging, realistic, consistent, and prioritized
They should be established at the corporate, divisional, and functional levels in a large organization.
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Annual Objectives
Annual objectives benefits:
Represent the basis for allocating resources.
Main tool for evaluating managers.
Major tool for monitoring progress toward achieving long-term objectives.
Establish organizational, divisional, and departmental priorities.
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Policies
Policies
the means by which annual objectives will be achieved.
include guidelines, rules, and procedures established to support efforts to achieve stated objectives
tool for strategy implementation.
clarify what can and cannot be done in pursuit of an organization’s objectives.
Policies are the means by which annual objectives will be achieved.
They include guidelines, rules, and procedures established to support efforts to achieve stated objectives
Policies are guides to decision making and address repetitive or recurring situations
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Resource Allocation
Resource allocation
Central management activity that allows for strategy implementation.
Strategic management enables resources to be allocated according to priorities established by annual objectives.
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Types of Resources
Financial
Physical
Human
Technological
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14. Strategy Implementation Actions
Overall strategy broken down into manageable parts.
Goals and deadlines set for accomplishment.
Appropriate resources allocated.
Right numbers and types of people assigned.
Policies and procedures to guide their actions.
One person assigned overall responsibility for each part.
Progress measured and tracked.
Changes and adjustments when appropriate.

15. Current Marketing Issues
How to make advertisements more interactive to be more effective.
How to best take advantage of Facebook and Twitter conservations about the company and industry.
How To use exclusive dealerships or multiple channels of distribution.
How TV advertising versus online advertising.
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16. Current Marketing Issues
How Firms should provide incentives to consumers to share their thoughts, opinions, and experiences on the company website.
How The company website must not be all about the company—it must be all about the customer too.
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Market Segmentation
Market Segmentation
Subdividing of a market into different divisions of customers according to needs and buying habits
widely used in implementing strategies.
Market segmentation decisions directly affect marketing mix factors: product, place, promotion, and price.
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Market Segmentation
Market segmentation permits a firm to operate with limited resources because mass production, mass distribution, and mass advertising are not required.
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19. Acquiring Capital to Implement Strategies
Successful strategy implementation often requires additional capital.
Two basic sources of capital for an organization are debt and equity.
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Financial Budgets
Financial budget :
a document that details how funds will be obtained and spent for a specified period of time.
include, operating budgets, sales budgets, profit budgets, capital budgets, expense budgets, divisional budgets.
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21. R&D Approaches for Implementing Strategies
Be the first firm to market new technological products.
Be an innovative successful products, thus minimizing the risks and costs of start-up.
Be a low-cost producer by mass-producing products similar to but less expensive than products recently introduced.
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22. Management Information Systems (MIS) Issues
Having an effective management information system (MIS) may be the most important factor in differentiating successful from unsuccessful firms.
The process of strategic management is facilitated hugely in firms that have an effective information system.
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23. Examples of Organizational Systems
Accounting and budgeting system
Management information system
Manufacturing control system
Compensation and reward system
Planning system

24. Potential Implementation Problems
Original plan poorly considered.
Take more time than planned.
Poor coordination of activities.
Assigned employees lacked necessary skills.
Insufficient allocation of resources.
Uncontrollable external environmental factors.
Poorly defined key tasks and activities.