CU-BCOM-SEM-V-Corporate Strategy-Second Draft

history of such behaviour, when the competitors have invested substantial resources in the industry, and when the industry is characterized by slow growth. Some of the major barriers to market entry include economies of scale, high capital requirements, and switching costs for the customer, limited access to the channels of distribution, a high degree of product differentiation, and restrictive government policies. Suppliers can gain bargaining power within an industry through a number of different situations. For example, suppliers gain power when an industry relies on just a few suppliers, when there are no substitutes available for the suppliers' product, when there are switching costs associated with changing suppliers, when each purchaser accounts for just a small portion of the suppliers' business, and when suppliers have the resources to move forward in the chain of distribution and take on the role of their customers. Supplier power can affect the relationship between a small business and its customers by influencing the quality and price of the final product. \"All of these factors combined will affect your ability to compete,\" Cook noted. \"They will impact your ability to use your supplier relationship to establish competitive advantages with your customers.\" The reverse situation occurs when bargaining power rests in the hands of buyers. Powerful buyers can exert pressure on small businesses by demanding lower prices, higher quality, or additional services, or by playing competitors off one another. The power of buyers tends to increase when single customers account for large volumes of the business's product, when a substitutes are available for the product, when the costs associated with switching suppliers are low, and when buyers possess the resources to move backward in the chain of distribution. \"All firms in an industry are competing, in a broad sense, with industries producing substitute products. Substitutes limit the potential returns of an industry by placing a ceiling on the prices firms in the industry can profitably charge,\" Porter explained. Product substitution occurs when a small business's customer comes to believe that a similar product can perform the same function at a better price. Substitution can be subtle—for example, insurance agents have gradually moved into the investment field formerly controlled by financial planners—or sudden—for example, compact disc technology has taken the place of vinyl record albums. The main defence available against substitution is product differentiation. By forming a deep understanding of the customer, some companies are able to create demand specifically for their products. \"The battle you wage against competitors is one of the strongest industry forces with which you contend,\" according to Cook. Competitive battles can take the form of price wars, advertising campaigns, new product introductions, or expanded service offerings—all of which can reduce the profitability of firms within an industry. The intensity of competition tends to increase when an industry is characterized by a number of well- balanced competitors, a slow rate of industry growth, high fixed costs, or a lack of differentiation between products. Another factor increasing the intensity of competition is high exit barriers—including specialized assets, emotional ties, government or social restrictions, strategic interrelationships with other business units, labour agreements, or other 201 CU IDOL SELF LEARNING MATERIAL (SLM)

fixed costs—which make competitors stay and fight even when they find the industry unprofitable. 11.7 SUMMARY  \"Industry attractiveness is the presence or absence of threats exhibited by each of the industry forces,\" Cook explained. \"The greater the threat posed by an industry force, the less attractive the industry becomes.\" Small businesses, in particular, should attempt to seek out markets in which the threats are low and the attractiveness is high. Understanding what industry forces are at work enables small business owners to develop strategies to deal with them. These strategies, in turn, can help small businesses to find unique ways to satisfy their customers in order to develop a competitive advantage over industry rivals.  Success factors are those elements that determine whether a company succeeds or fails in a given industry. They vary greatly by industry. Some examples of possible success factors include quick response to market changes, a complete product line, fair prices, excellent product quality or performance, knowledgeable sales support, a good record for deliveries, solid financial standing, or a strong management team. \"The reason for identifying success factors is that it will help lead you to areas where you can establish competitive advantages,\" Cook noted. The first step is to determine whether or not the company possesses each success factor identified. Then the small business owner can decide whether the company can and should develop additional success factors.  A comprehensive industry analysis requires a small business owner to take an objective view of the underlying forces, attractiveness, and success factors that determine the structure of the industry. Understanding the company's operating environment in this way can help the small business owner to formulate an effective strategy, position the company for success, and make the most efficient use of the limited resources of the small business. \"Once the forces affecting competition in an industry and their underlying causes have been diagnosed, the firm is in a position to identify its strengths and weaknesses relative to the industry,\" Porter wrote. \"An effective competitive strategy takes offensive or defensive action in order to create a defendable position against the five competitive forces.\" Some of the possible strategies include positioning the firm to use its unique capabilities as defence, influencing the balance of outside forces in the firm's favour, or anticipating shifts in the underlying industry factors and adapting before competitors do in order to gain a competitive advantage.  Matrix is created on the basis of two criteria: the maturity of the sector, divided into 5 phases and the competitive position of companies in the sector. In this way circles are 202 CU IDOL SELF LEARNING MATERIAL (SLM)

created, which represent different areas of activity in the company, and the size of the circle is proportional to size of the sector. Sometimes segments could be added to the circle, which reflect the market share of company in the sector.  Below is a sample matrix constructed according to the principles set out by Hofer. In its interpretation attention should be paid to possible strategies for products, their life cycle phases and the markets in different sectors.  Sometimes bad strategy decisions can be made when a narrow focus is kept on the growth rate of an industry. While rapid growth in an industry can seem attractive, it can also attract new entrants especially if entry barriers are low and suppliers are powerful. Furthermore, profitability is not guaranteed if powerful substitutes become available to the customers.  For example, Blockbuster dominated the rental market throughout 1990s. In 1998, Reed Hastings founded Netflix and entered the market. Netflix's CEO was famously laughed out of the room. While Blockbuster was thriving and expanding rapidly, its key pitfall was ignoring its competitors and focusing on its growth in the industry.  According to Porter, the five forces framework should be used at the line-of-business industry level; it is not designed to be used at the industry group or industry sector level. An industry is defined at a lower, more basic level: a market in which similar or closely related products and/or services are sold to buyers (see industry information). A firm which competes in a single industry should develop, at a minimum, one five forces analysis for its industry. Porter makes clear that for diversified companies, the primary issue in corporate strategy is the selection of industries (lines of business) in which the company will compete. The average Fortune Global 1,000 Company competes in 52 industries. 11.8 KEYWORDS  Program Assessment Rating Tool – Developed by the Office of Management and Budget within the Office of the President of the United States, the Program Assessment Rating Tool was developed to assess and improve program performance so that the federal government can achieve better results. A PART review helps identify a program’s strengths and weaknesses to inform funding and management decisions aimed at making the program more effective. The PART therefore looks at all factors that affect and reflect program performance including program purpose and design; performance measurement, evaluations, and strategic planning; program management; and program results.  Qualitative – Subjective, as opposed to quantitative. A common source of qualitative metrics is surveys of customers, stakeholders or employees. 203 CU IDOL SELF LEARNING MATERIAL (SLM)

 Quantitative – Measured, as opposed to qualitative Quantitative measures often come from transactional systems.  Readiness Scorecard – A specific application of a scorecard, a readiness scorecard can be used to evaluate an organization’s state of readiness/acceptance of a given strategy.  Reports – Typically show the details of performance for a metric or multiple metrics. Reports are often used to drill down to the root cause of performance issues. 11.9 LEARNING ACTIVITY 1. Create a session on Porter five forces model. ___________________________________________________________________________ ___________________________________________________________________________ 2. Create a survey on BCG Matrix. ___________________________________________________________________________ ___________________________________________________________________________ 11.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Power of Suppliers? 2. Define the Power of Customers? 3. What is BCG Matrix? 4. Write the full form of BCG? 5. What is Industry Analysis? Long Questions 1. Explain the complication of BCG Matrix. 2. Explain the GE Nine Cell Matrix. 3. Illustrate the Porter five forces model. 4. Illustrate the Hofer’s Product-Market Evolution Matrix. 5. Explain the features of Industry Analysis. B. Multiple Choice Questions 204 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Which of the following has most likely occurred when a supervisor conducting a performance appraisal is influenced by a subordinate's individual differences such as age, sex, and race? a. Bias b. Unclear standards c. Central tendency d. Broad banding 2. Which of the following is LEAST likely to cause a supervisor's performance appraisal of a subordinate to be biased? a. Purpose of the appraisal b. Personality of the supervisor c. Location and time of the appraisal d. Personal characteristics of the subordinate 3. What is the primary advantage of using graphic rating scales as performance appraisal tools? a. Eliminates central tendency errors b. Offers extremely high rate of accuracy c. Provides quantitative rating for each employee d. Links with mutually agreed upon performance objectives 4. Which is not considered best practices for administering fair performance appraisals? a. Explaining how subordinates can improve their performance b. Clarifying in advance what the performance expectations are c. Basing the appraisal on observable job behaviours d. Using subjective performance data for appraisals 5. Which would most likely result in a legally questionable appraisal process? a. Conducting a job analysis to establish performance standards b. Basing appraisals on subjective supervisory observations c. Administering and scoring appraisals in a standardized fashion d. Using job performance dimensions that are too clearly defined Answers 205 1-a, 2-c, 3-c, 4-d, 5-b CU IDOL SELF LEARNING MATERIAL (SLM)

11.11 REFERENCES References book  Hofer, C. W. (1975). Toward a contingency theory of business strategy.  McNamee, P. B. (1985). Tools and techniques for strategic management. Oxford: Pergamon Press.  Pethia, R. F., &Saïas, M. (1978). Metalevel product-portfolio analysis: An enrichment of strategic planning suggested by organization theory. Textbook references  Hunt, Arnold D., Marie T. Crotty, and Robert B. Crotty. 1991. Ethics of world religions (Opposing Viewpoints). Greenhaven Press.  Janis, Irving. 1989. Crucial decisions. New York: Free Press.  Jennings, Marianne. 2006. Business ethics. Thomson South-Western Website  https://en.wikipedia.org/wiki/Porter%27s_five_forces_analysis  https://ceopedia.org/index.php/Hofer_matrix  https://www.inc.com/encyclopedia/industry-analysis.html 206 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 12: STRATEGIC IMPLEMENTATION STRUCTURE 12.0 Learning Objectives 12.1 Introduction 12.2 StrategicImplementation: 12.3 Concept 12.4 Interrelationshipbetween Formulation and Implementation 12.5 Summary 12.6 Keywords 12.7 Learning Activity 12.8 Unit End Questions 12.9 References 12.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Comprehend the concept of StrategicImplementation.  Illustrate the advantages of StrategicImplementation.  Explain the Interrelationship between Formulation and Implementation. 12.1 INTRODUCTION When reviewing strategic thinking, we realize how this phenomenon has gone through different phases and semantic contexts. With a millennium distancing the word from its origins, the word strategy has had several meanings but without ever losing its semantic roots. In the beginning, strategy took on a military significance and represented the action of commanding or leading armies in times of war, i.e. a military campaign. It meant a way of prevailing over the adversary, a tool of victory in war and only afterwards was it applied to other contexts and fields of human relationships: political, economics, business, among others, but always retaining in all its uses the semantic root, to define paths. After several phases and meanings, the concept of strategy has evolved into a field of knowledge in management, strategic management, with content, concepts and practical reasoning, ending up by carving out its own role in the academic and business fields. Management uses this old military concept to associate the activities of a general with those of an organization's manager. Since it represents an important tool for business management in a competitive and 207 CU IDOL SELF LEARNING MATERIAL (SLM)

turbulent marketplace, the main objective of strategy involves preparing the organization to confront the current hostile environment, to this end systematically and objectively deploying the skills, qualifications and internal resources of the enterprise. On the other hand, the concept of strategy still seems to be a very vague concept and subject to various interpretations. After several phases and meanings, the concept of strategy has evolved into a field of knowledge in management, strategic management, with content, concepts and practical reasoning, ending up by carving out its own role in the academic and business fields. Management uses this old military concept to associate the activities of a general with those of an organization's manager. Since it represents an important tool for business management in a competitive and turbulent marketplace, the main objective of strategy involves preparing the organization to confront the current hostile environment, to this end systematically and objectively deploying the skills, qualifications and internal resources of the enterprise. On the other hand, the concept of strategy still seems to be a very vague concept and subject to various interpretations. An exact definition of strategy may not actually be fundamental, however, within the context of organizational knowledge management, specifically the knowledge that new professionals bring into companies, grasping which type of strategic understanding new managers bring into the organization is clearly of importance. Thus, we may question whether concepts of strategy and strategic management are understood by business managers, especially the younger, the newly graduated in management. Therefore, this research aims to assess the acquired knowledge of university management students relating to strategy and strategic management concepts with the purpose of answering the following question: What is strategy and strategic management to future managers? Are they understood and recognized? To answer this question, this study seeks to examine management student understanding as to the meaning of these two concepts. As specific objectives, we seek to build a model explaining the definition of strategy according to the perceptions of students graduating in management, and to identify which concept of strategic management in the existing literature comes closest to the perceptions of current management students. To understand the perceptions of individuals about a particular concept, we adopt phenomenography type research practices. The main feature of the research method is its description of a phenomenon as it is experienced, emphasizing the collective significance of the studied phenomena, and should in no way be confused with phenomenological studies. Phenomenology is far more concerned with the individual experience of the people involved than with the phenomena studied. 12.2 STRATEGICIMPLEMENTATION In the earlier units we have discussed about the various strategies at corporate level and business level. In this unit we will go through the implementation phase of the strategies, Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals. In this unit we are going to discuss the strategy implementation and its various aspects. Strategy implementation is the transformation of 208 CU IDOL SELF LEARNING MATERIAL (SLM)

chosen strategy into organizational action so as to achieve strategic goals and objectives. Let us now discuss the nature and barriers to strategy implementation, model of strategy implementation, project implementation, procedural implementation and resource allocation in the following sections. Strategy Implementation is described as a process or activity that ensures the strategic planning. It is a dynamic, iterative and complex process which comprises a series of decisions and activities by the managers and employees –affected by a number of interrelated internal and external factors to turn strategic plans into reality in order to achieve strategic objectives. Strategy implementation is a term used to describe the activities within an organization to manage the execution of a strategic plan. Strategy implementation is the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance. Figure 12.1: Strategy implementation Research studies found that it is much difficult to implement strategy than to formulate it. Majority of the time a good strategy fails. Why it fails? There are many reasons behind it which can be treated as barriers in effective strategy implementation. A good strategy without proper implementation is like a poor strategy or no strategy at all, however having a good strategic plan is half the battle won, and the other half is won through effective strategyimplementation. Effective implementation of strategies is important to the success of every entity. In many of the studies, it is stated that strategy implementation is much more difficult than strategy formulation. A study in the Indian context done with 145 mangers working in companies in and around Delhi attempted to uncover the reasons why strategy implementation in unsuccessful. This study listed 11 most frequently cited reasons of which the major ones are : inadequate management skills, poor comprehension of roles, inadequate 209 CU IDOL SELF LEARNING MATERIAL (SLM)

leadership, ill-defined tasks and lack of employee commitment. Hrebiniak’s finding suggested that there are some general and overarching issues that impede strategy implementation. He stated that mangers are trained to plan and not to execute strategies, thus the top managers are reluctant to interfere in the task of implementation .As formulation and implementation of strategies are interdependent , they are being done by two other groups of people in an organization. This makes the implementation phase takes a longer time than formulation thus putting more pressure on the mangers to show results. To implement a project means to carry out activities proposed in the application form with the aim toachieve project objectives and deliver results and outputs. Its success depends on many internal and external factors. Some of the most important factors are well organised project team and effective monitoring of project progress and related expenditures.Overall management has to be taken over by the project manager, who is oftenemployed or engaged by the lead partner. The project management has to have an efficient managementsystem and always has to be flexible to current needs and changed situations, as the project is rarelyimplemented exactly according to the initial plan. Strategic planning is the act of creating short- and long-term plans to guide an organization to continued and increasing success in the marketplace. Project managers oversee specific projects ultimately designed to make progress toward strategic planning objectives. Implementing projects — putting planned projects into action — is important to both strategic planning efforts and project managers in a number of ways. All managers can benefit from understanding the importance of project implementation to strategic planning and the project manager. Project planning and implementation are two important aspects. Many managers put all of their energy and efforts into ambitious planning. But they do give enough thought to how goals actually will be achieved. Strategic planning efforts essentially take place in a laboratory devoid of the range of uncontrollable variables present in the real world. Certain things are beyond control and everything will not go as per what organization thought it will be. In this sense, even the best laid plans need correction and adjustment onthe-fly, making project managers’ jobs that much more important. Implementing projects is important for project managers and the strategic planning process because it can reveal new issues and challenges that planner may not have anticipated, ultimately resulting in more refined strategies, products and processes. The fact is that the principles and techniques of project management have a high relevance to the tasks of strategy implementation and it is actually a techno-managerial function. The principles and techniques of project management (knowledge of project formulation, implementation and evaluation) can be applied to large scale as well as minor project within organization. 12.3 CONCEPT The paper’s purpose is to add to the body of knowledge on strategy implementation by systematically studying the activities for and obstacles to strategy execution on a sample of 172 Slovenian companies. The results show that managers mostly rely on planning and 210 CU IDOL SELF LEARNING MATERIAL (SLM)

organising activities when implementing strategies, while the biggest obstacle to strategy execution is poor leadership. Moreover, the results of multiple regression analysis reveal that greater obstacles to strategy execution in the forms of inadequate leadership skills and employees’ reluctance to share their knowledge have a negative influence on performance. One of the main reasons for the emergence of strategic management in the last quarter of the 20th century was to pay proper attention to the implementation of strategy in companies. There is no doubt that strategic planning is important yet formulated strategies must also be implemented otherwise the whole planning phase becomes worthless. The planning- implementation relationship is well described by Hrebiniak one of the most prominent authors in the field of strategy implementation: “It is obvious that the execution of strategy is not merely as clear and understood as the formulation of strategy. Much more is known about planning than doing, about strategy making than making strategy work”. Hrebiniak’s argument that, while formulating a strategy is hard, making it work, i.e. “executing or implementing it throughout the organisation”, is even harder is supported by past empirical studies which report weak relationships between strategy formulation and its implementation. Fortune magazine finds that less than 10% of well-formulated strategies are also effectively executed. Identical results of just 10% of strategies being successfully implemented are also reported by Judson and Speculand. Similarly, a Times’ study finds that 80% of companies have the right strategies, yet only 14% implement them well. A 2003 survey by the Economist Intelligence Unit and Makaron Associates reports slightly better but still very disappointing achievements, discovering that on average companies deliver a mere 63% of the potential financial performance their strategies have promised. As reported by Raps, a conclusion can be made that the real success rate of strategy implementation lies between 10 and 30%. Therefore, most companies have strategies but only a few actually realise them. These low success rates are discouraging, especially since many companies recently have invested huge sums of money to improve their strategic planning. At the end of the 20th century US companies were, for example, spending more than USD 10 billion annually in analysing their industries, markets and competitors, and then formulating their strategic plans. In addition to the enormous waste of money involved, the low success rates of strategy implementation processes are also problematic because poor strategy implementation weakens the subsequent planning cycle. Such deficient strategy implementation therefore inhibits future strategy formulation which creates a deadly spiral of two mutually enforcing factors – poor planning and poor implementation. The presented empirical findings on strategy implementation are therefore far from encouraging. The introduction of strategic management as we know it today (i.e. the process of strategic planning combined with strategy implementation and control) opened up a formal framework for dealing with this problem, yet to date it has not attracted much academic attention. Noble for example, argues that we are still witnessing a noticeable absence of a deep and cohesive body of literature in the field of strategy implementation. Of course, this must have consequences for business practice. Hrebiniakargues that most managers know far more about developing strategy than 211 CU IDOL SELF LEARNING MATERIAL (SLM)

they do about executing it. As a result, they spend a lot of time formulating their strategies but often find that almost nothing ultimately changes in their companies. The original momentum somehow disappears before the company can realise the expected benefits. To overcome these huge problems of strategy implementation, many authors call for researchers to more strongly emphasise the practical problems of strategy implementation. Taking into account the poor level of knowledge in the field of strategy implementation in general and keeping in mind that serious empirical research about the factors of strategy implementation in Central and South-east Europe has been almost completely neglected, we intend to contribute to the development of this field by providing relevant insights into a number of issues linked with strategy implementation. More specifically, the purpose of this paper is to add to the body of knowledge on strategy implementation by studying the activities for strategy implementation and obstacles to strategy implementation faced by Slovenian 1 companies. Although these two issues (activities and obstacles) have been addressed in past research), they have not been addressed simultaneously. The value of this study can therefore be especially found in its combined investigation of both activities for and obstacles to strategy implementation. In particular, the research offers value by systematically addressing the following research questions: What are the most important groups of activities for and obstacles to strategy implementation? How do companies from different size, sector, ownership and sales market groups differ in the activities they practice and in the obstacles they face when implementing their strategies? What is the relationship between the activities for and obstacles to strategy implementation on one hand and company performance on the other? To address these research questions systematically the paper is structured in five sections. After the introduction. 12.4 INTERRELATIONSHIPBETWEEN FORMULATION AND IMPLEMENTATION Strategy Formulation Strategy Implementation Strategy Formulation includes planning and Strategy Implementation involves all those means related to executing the strategic decision-making involved in developing plans. organization’s strategic goals and plans. In short, Strategy Formulation is placing the In short, Strategy Implementation Forces before the action. is managing forces during the action. Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly Activity based on strategic decision-making. an Administrative Task based on strategic and operational decisions. 212 CU IDOL SELF LEARNING MATERIAL (SLM)

Strategy Formulation emphasizes Strategy Implementation emphasizes on effectiveness. on efficiency. Strategy Formulation is a rational process. Strategy Implementation is basically an operational process. Strategy Formulation requires co-ordination Strategy Implementation requires co- among few individuals. ordination among many individuals. Strategy Formulation requires a great deal Strategy Implementation requires of initiative and logical skills. specific motivational and leadership traits. Strategic Formulation precedes Strategy Strategy Implementation follows Strategy Implementation. Formulation. 12.5 SUMMARY  Besides the activities that need to be accomplished if a company wants to implement its strategies, one should not neglect variables in the organisational context that could hinder or represent obstacles to effective strategy implementation. Hrebiniakidentifies four broad contextual factors that deserve special attention when discussing obstacles to strategy implementation: the change management context, the organisational culture context, the organisational power structure context and the leadership context. These four factors affect and are affected by each other. When all four are synchronised, the prognosis for effective strategy implementation should be very positive  Managing change is difficult but absolutely critical for successful strategy execution. Wharton-Gartner’s study found that problems with change management constitute the single biggest threat to strategy implementation. Leaders must therefore identify areas of necessary change and overcome any potential resistance to change. They are instrumental in changing and managing key people, incentives and organisational structures. Organisational culture refers to the shared values, attitudes and norms of behaviour that create the propensity for individuals in an organisation to act in certain ways. One of the most common culture-related problems in companies is a lack of trust, which usually results in poor or inadequate information and knowledge sharing between individuals and/or business units responsible for strategy implementation. This problem was, for example, ranked as one of the largest obstacles to strategy execution by American managers. Another common cultural problem is the domination of the short-term orientation in a company. Two independent studies 213 CU IDOL SELF LEARNING MATERIAL (SLM)

conducted by Alexander and Al-Ghamdi report that competing short-term activities distract attention from strategy implementation in 64% and 83% of companies, respectively.  The organisational power structure is important because it influences decisions regarding the allocation of all kinds of resources necessary for strategy execution. Hrebiniak and Gurkovargue that even wellprepared and sound plans die if the implementers fail to confront difficult organisational and political obstacles that stand in the way of effective implementation. Therefore, strategy executors must persuade all relevant employees to carry out all activities necessary to implement the strategy. Obviously, the top manager’s guidance, support and active involvement in strategy implementation is critical. If those in power do not care about or even resist execution of the strategy, the success of the implementation process is clearly jeopardised. Finally, proper leadership skills are also needed to ensure employees will execute the selected strategies. One of the biggest problems is usually the lack of co-ordination and clear guidelines. Al-Ghamdi, for example, reports that 75% of companies lack the effective co-ordination of implementation activities. According to Kaplan and Norton, this problem can be partly solved by using strategic maps which connect a strategy paper with an operative execution plan and can therefore substitute organising efforts for strategy implementation. Another important function of leadership is to “sell” the strategy to everyone who matters. A strategy must therefore be successfully communicated to the employees. Kaplan and Norton argue that on average 95% of a company’s employees are unaware of or do not understand the company’s strategy. And if the employees are unaware of the strategy, they surely cannot help the company implement it effectively. Studies also confirm the success of the strategy execution depends on the adoption of a compensation system that motivates managers and employees to achieve company goals.  In addition to the four organisational context variables one also should not forget that a strategy cannot be successfully implemented if the strategic planning, i.e. strategic analysis and strategy formulation is poor. In this regard, Giles argues there are three reasons why poor strategic planning is an obstacle to strategy implementation: a strategy is not really a strategy but “a mixture of budgets and management wish list”; a strategy is not executable; and a strategy is not owned by the executors because they did not participate in its formulation and therefore do not accept it as “their own”. Based on the presented literature review, we identified 13 of the most commonly addressed obstacles to strategy implementation that can be classified in five broad groups: problems in strategy formulation, change management problems, organisational culture problems, problems related to organisational power structure and leadership problems. 214 CU IDOL SELF LEARNING MATERIAL (SLM)

12.6 KEYWORDS  Scorecard – A scorecard is a visual display of the most important information needed to achieve one or more objectives, consolidated and arranged on a single screen so the information can be monitored at a glance. Unlike dashboards that display actual values of metrics, scorecards typically display the gap between actual and target values for a smaller number of key performance indicators.  Six Sigma – A quality management and process improvement methodology particularly well suited to process intensive industries like manufacturing. Six Sigma measures a given process by its average performance and the standard deviation (or variation) of this performance, aiming to reduce the occurrence of defects in a given process to a level of “Six Sigma” outside the norm; no more than 3.4 times per million.  Strategic Management System – Describes the use of the Balanced Scorecard in aligning an organization’s short‐term actions with strategy. Often accomplished by cascading the Balanced Scorecard to all levels of the organization, aligning budgets and business plans to strategy, and using the Scorecard as a feedback and learning mechanism.  Strategy – Strategy is the way an organization seeks to achieve its vision and mission. It is a forward-looking statement about an organization’s planned use of resources and deployment capabilities. Strategy becomes real when it is associated with: a concrete set of goals and objectives; and a method involving people, resources and processes.  Strategy Map – A specific version of a strategy plan that adheres to the Balanced Scorecard methodology. Strategy maps depict objectives in multiple perspectives with corresponding cause and effect linkages. 12.7 LEARNING ACTIVITY 1. Create a session on Strategic Implementation. ___________________________________________________________________________ ___________________________________________________________________________ 2. Create a survey on Interrelationship between Formulation and Implementation. ___________________________________________________________________________ ___________________________________________________________________________ 215 CU IDOL SELF LEARNING MATERIAL (SLM)

12.8UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is Strategy Formulation? 2. What is Strategy Implementation? 3. Define Strategic Budget? 4. Define Performance budgeting? 5. Write down the main aim of Zero-base budgeting? Long Questions 1. Explain the interdependence between strategy formulation and strategy implementation. 2. Illustrate the nature of strategy Implementation. 3. Illustrate the barriers to strategy implementation. 4. Explain the model of strategy implementation. 5. Examine the Disadvantages of Performance budgeting. B. Multiple Choice Questions 1. What usually occurs when employees rate themselves for performance appraisals? a. Ratings are reliable but invalid. b. Ratings are subject to halo effects. c. Logrolling leads to unrealistic ratings. d. Ratings are higher than when provided by supervisors. 2. Which of the following terms refers to the process of allowing subordinates to rate their supervisor's performance anonymously? a. Supplemental evaluation b. Downward feedback c. Upward feedback d. Peer evaluation 3. Which of the following terms refers to a performance appraisal based on surveys 216 from peers, supervisors, subordinates, and customers? a. 360-degree feedback b. Team appraisals CU IDOL SELF LEARNING MATERIAL (SLM)

c. Upward feedback d. Rating committee 4. Which of the following best describes the purpose of an appraisal interview? a. Training supervisors in the rating process b. Identifying potential interpersonal problems c. Providing constructive feedback to supervisors d. Making plans to correct employee weaknesses 5. Which one of the following is not an appraisal interview, supervisors should do all? a. Ask open-ended questions b. Talk in terms of objective work data c. Give specific examples of poor performance d. Compare the person's performance to that of other employees Answers 1-d, 2-c, 3-a, 4-d, 5-d 12.9 REFERENCES References book  Jensen, Michael C., Meckling, William. 1976. Theory of the firm: Managerial behaviour, Agency Costs and Ownership Structure. Journal of Financial Economics.  Kaplan, R., and D. Norton. 1996. The balanced scorecard. Boston: Harvard Business School Publishing.  Kaplan, R., and D. Norton. 2007. Strategy maps. Harvard Business School Publishing. Textbook references  Kaplan, Robert, and David Norton. 2004. Strategy maps. Boston: Harvard Business School Press.  Kogut, B., and U. Zander. 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science.  Kogut, B., and U. Zander. 1996. What firms do? Coordination, identity, and learning. Organization Science 217 CU IDOL SELF LEARNING MATERIAL (SLM)

Website  https://kkhsou.ac.in/eslm/E-SLM-for- Learner/3rd%20Sem/Master%20Degree/MBA%203rd%20Sem/Business%20policy% 20and%20strategic%20Management/BP&SM%20- 2/BPSM%20PDF%20file/BPSM%20Block-2/Unit-11.pdf  https://www.econstor.eu/bitstream/10419/84060/1/766454746.pdf  https://www.managementstudyguide.com/strategy-formulation-vs- implementation.htm 218 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 13: ASPECTS OF STRATEGY IMPLEMENTATION STRUCTURE 13.0 Learning Objectives 13.1 Introduction 13.2 Aspects of Strategy Implementation (Behavioural Implementation, Resource Allocation) 13.3 Concept 13.4 Interrelationshipbetween Formulation and Implementation 13.5 Summary 13.6 Keywords 13.7 Learning Activity 13.8 Unit End Questions 13.9 References 13.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Comprehend Aspects of Strategy Implementation.  Illustrate the concept of Behavioural Implementation.  Illustrate the Resource Allocation. 13.1 INTRODUCTION The study is justified due to the sheer importance of the themes of strategy and strategic management to contemporary organizations. In this sense, the survey sought to contribute towards management knowledge in the organizational environment by clarifying what is the real understanding of management graduates on the themes of strategy and strategic management. According to Tseng and Obembe, knowledge management in an organization begins by identifying the knowledge that individuals bring in from outside the company. In this case, the development of organizational strategy depends on understanding the perceptions of their managers on what strategy and strategic management actually is. The identification of perceptions of future managers on the two concepts, as used in this study, contributes significantly to organizational management practice. This enables the 219 CU IDOL SELF LEARNING MATERIAL (SLM)

organization's management strategies as organizational knowledge on the field of strategy can hardly be managed should each manager understand the concept differently. The study findings may also be expected to contribute to Higher Education Institutions (HEI), by identifying what level of understanding their graduating management students attain regarding the subjects under analysis. The research contribution also extends to the academic world by presenting the concepts of strategy and strategic management most present and active in the minds of future managers, findings rarely encountered in the literature. There are few studies relating strategy as a theoretical approach and its practical application in organizations. Thus, this study contributes to research on strategy demonstrating that the field of strategy, comprising as it does of several concepts and approaches, generates confusion among management practitioners. After all, the same phenomenon is approached in several distinctly different ways and individuals working in management would also seem to hold various perspectives, often understanding neither the real meaning of strategy nor its management. Furthermore, this research aims to provide some insights for lecturers bearing in mind that student opinions and knowledge on this matter reflect the efficiency and the effectiveness of the strategy related learning process, potentially revealing a need to change the didactics of these classes. Another reason that led to this study was the method adopted, phenomenography, whose main characteristic is its ability to capture the perceptions of a group of people about a concept. After an exhaustive search of available scientific databases, only one study of a similar nature was found, the Shanahan and Gerber research on the concept of quality in HEIs, which proved the inspiration for the research set out here. Most of the other phenomenography studies found deal with educational teaching methodsor, in fewer cases, the behaviour of consumers. In the field of strategy, they both represent an innovation and a new alternative for research. The paper is structured as follows: firstly, a literature review of the strategy and strategic management concepts from a historical perspective is carried out. Afterwards, the phenomenography research is described and explained. The methodology adopted in the survey is presented in the next section. Subsequently, the collected data are analysed and our model is tested. The article ends up with final considerations and future recommendations. Although a comparison with studies in similar post-transitional contexts are more interesting, our results can be compared in a most direct with the results of Wharton-Gartner’s American- based study. The comparison reveals big differences in the importance attributed to several obstacles to strategy implementation. The obstacles found to be relatively more important in our study than in the American context are especially the unstimulated reward system and the lack of top management’s engagement in strategy implementation. On the other hand, the lack of capabilities for implementing change management is ranked first among the obstacles in the American context, while it is only ranked eighth in our study. The importance of some other obstacles, i.e. weaknesses in communicating the strategy to lower levels, a poorly defined strategy and a lack of ideas on how to persuade employees to execute the selected 220 CU IDOL SELF LEARNING MATERIAL (SLM)

strategy, is assessed similarly in both studies. No significant differences were found in the presence of obstacles to strategy implementation. 13.2 ASPECTS OF STRATEGY IMPLEMENTATION (BEHAVIOURAL IMPLEMENTATION, RESOURCE ALLOCATION) Strategy implementation refers to various activities involved in executing the strategies of an organization. In simpler words, strategy implementation puts an organization’s strategies into action through various procedures, plans and programs. Strategy implementation involves actions and tasks that are needed to be performed after the formulation of strategies. It is influenced by management’s perspective, as management sets the strategies that are executed in the implementation stage. An effective implementation of strategy is significant for an organization’s growth, whereas failure in effective strategy implementation may have negative consequences for an organization. The different aspects involved in strategy implementation cover practically everything that is included in the discipline of management studies. A strategist, therefore, has to bring to his or her task a wide range of knowledge, skills, attitudes, and abilities. The implementation tasks put to test the strategists’, abilities to allocate resources, design structures and systems, formulate functional policies, take into account the leadership style required, and plan for operational effectiveness, besides, dealing with various other issues. The strategic plan devised by the organisation proposes the manner in which the strategies could be put into action. Strategies, by themselves, do not lead to action. There are, in a sense, statements of intent- implementation tasks are meant to realise the intent. Strategies, therefore, have to be activated through implementation. Strategies lead to several plans, each plan leads to several programmers. Each programme results in several projects. Projects are supported by funds through budgets. The administrative mechanisms of policies, procedures, rules and regulations support the working of the organisation while it implements the projects, programmes, plans, and strategies. First of all, strategies should lead to plans. For instance, if stability strategies have been formulated, they may lead to the formulation of various plans. One such plan could be a modernization plan. If expansion strategies have been adopted, various types of expansion plans will have to be formulated. An expansion plan could be designed to set up an additional plant to manufacture the same products. Similarly, diversification strategies could lead to new product development plans. Plans result in different kinds of programmes. A programme is a broad term which includes goals, policies, procedures, rules and steps to be taken in putting a plan into action. Programmes are usually supported by funds allocated for plan implementation. Programmes 221 CU IDOL SELF LEARNING MATERIAL (SLM)

lead to the formulation of projects. A project is a highly specific programme for which the time schedule and costs are predetermined. It requires the allocation of funds based on capital budgeting by organisation. Thus, R&D programmes may consists of several projects, each of which is intended to achieve specific and limited objective, requires separate allocation of funds, and is to be completed within a set time schedule. Project creates the needed infrastructure for the day-to-day operations in an organisation. They may be used for setting up new or additional plans, modernizing the existing facilities, installation of newer systems, and for several other activities that are needed for the implementation strategies. In practice companies may not make such a fine distinction among plans, programmes, and projects as we have done here. But as students of management we have to understand the difference and learn to distinguish between the different terms used in strategic management. Implementation of strategies is not limited to the formulation of plans, programmes, and projects. 13.3 CONCEPT Before strategic implementation can succeed, organizations need to have implemented a proper structure. This implies that different parts of the organization are linked together. Relationships between different positions, roles, and departments are transparent. A part of this step also requires the formulation of a proper organizational climate. This assumes the cooperation and development of personnel. Employees and leaders need to be committed, determined and efficient to convert purpose into results. Some strategies rely on software or products to effectively translate into the day-to-day. Organizations should also allocate resources to training and development for their staff. Strategies rely on the resources being available to implement new systems. Policies must go hand in hand with the new strategy as it is being implemented. Leaders need to provide their teams with specific sets of rules and guidelines. Everyone knows what behaviours are expected of them in light of the new strategy. This could be as simple as encouraging employees to ask for feedback at the end of customer service interactions. This policy might be part of an improved customer-experience strategy. Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance. Organizational structure allocates special value developing tasks and roles to the employees and states how these tasks and roles can be correlated so as maximize efficiency, quality, and customer satisfaction-the pillars of competitive advantage. But, organizational structure is not sufficient in itself to motivate the employees. 222 CU IDOL SELF LEARNING MATERIAL (SLM)

An organizational control system is also required. This control system equips managers with motivational incentives for employees as well as feedback on employees and organizational performance. Organizational culture refers to the specialized collection of values, attitudes, norms and beliefs shared by organizational members and groups. 13.4 INTERRELATIONSHIPBETWEEN FORMULATION AND IMPLEMENTATION Two of the most vital stages of a strategic management process are strategy formulation and strategy implementation. In strategy formulation, various strategies are developed and the most appropriate one is then selected so that the goals and objectives of the organization can be accomplished. On the other hand, when the strategy is actually put into action, the process is known as strategy implementation. In other words, strategy formulation pertains to the development of plans, while strategy implementation pertains to the application of those plans. When strategy formulation is successful, it does not mean that there will be successful strategy implementation as the two are distinct from one another. In this article, the two terms are described in detail and the differences between them are highlighted.  Developing long-term goals and objectives of an organization so that strategic decisions can be taken.  Examining the organizational environment by performing the SWOT analysis. This analysis is carried out to determine the strengths and weaknesses of the company, and monitoring the activities of the competitors to comprehend the opportunities and threats.  Establishing quantitative and measurable targets to ensure that both the short-term and the long-term goals of the organization are attained.  Developing target for every level of the organization so that they work together to achieve organizational objectives on the whole.  Analysing performance to determine the extent to which the actual performance of the organization is different from the desired performance.  Examining the different strategies and choosing the one that is most appropriate for the organization. 13.5 SUMMARY  Strategy formulation and strategy implementation are two important functions of strategic management. Strategy formulation takes place before strategy implementation in this process. In strategy formulation, different strategies are developed after analysing the business environment, organizational vision for the future, and the resources and competencies available. From these strategies, the 223 CU IDOL SELF LEARNING MATERIAL (SLM)

strategy that is best for the organization is selected. This strategy is then implemented in the strategy implementation process, where the strategy identified in the strategy formulation process is put into action. These two processes are critical for an organization as they ensure that the organization accomplishes its strategic plans and objectives and stays ahead of competition in the market. The implementation of strategy also needs development of functional policies which provide the direction to middle management on how to make the optimal use of allocated resources. Functional policies guide the middle level executives in framing operational plans and tactics to make strategy implementable. Policies are basically general principles to help executives to make certain choices.  They are developed in order to guarantee that strategic decisions are implemented. Functional implementation deals with the development of policies and plans in different areas of functions which an organisation undertakes. Functional approach of organisational analysis takes into account various functional areas and evaluates these for identifying strengths and weaknesses.  Strategies necessitate linkage at both dimensions that is vertically and horizontally. Vertical linkages establish coordination and support amongst corporate level, business unit level, divisional level and functional level plans.  A divisional strategy calling for development of a new product should be driven by a corporate objective that is growth and on knowledge of available resources, capital resources available from corporate as well as human and technological resources in the R&D function.  Linkages which are horizontally transverses through departments, divisions and functional areas of the organization should go hand in hand with each other. For example, a strategy calling for introduction of a new product needs the combined efforts of and coordination and cooperation among R&D, marketing, and the manufacturing departments. 13.6 KEYWORDS  Strategy Plan – A visual representation of an organization’s strategy and the objectives that must be met to effectively reach its mission. A strategy plan can be used to communicate, motivate and align the organization to ensure successful execution.  Target – A target is the defining standard of success, to be achieved over a specified time period, for the key performance indicators associated with a particular strategic objective. Providing context to make results meaningful, targets represent the organization’s “stretch goals.” 224 CU IDOL SELF LEARNING MATERIAL (SLM)

 Task – Represents details activities or tasks to be carried out to achieve each initiative. It captures information like resources, time, constraints, risk, budgets, milestone, and duration to complete the tasks.  Theme – Descriptive statement representing a major component of a strategy, as articulated at the highest level in the Vision. Most strategies can be represented in three to five themes. Themes are most often drawn from an organization’s internal processes or the customer value proposition, but may also be drawn from key financial goals. The key is that themes represent vertically linked groupings of objectives across several scorecard perspectives (at a minimum, Customer and Internal). Themes are often stated as catchy phrases that are easy for the organization to remember and internalize. For example: Operational Excellence or Customer Intimacy or Strategic Partnering.  Threshold – A means of describing and/or depicting the performance gap in easily understandable terms. Examples of threshold methods include “letter-grade” and “traffic-light” Values Representing an organization’s deeply-held and enduring beliefs, an organization’s values openly declare how it expects everyone to behave and are often embedded in its vision. 13.7 LEARNING ACTIVITY 1. Create a session on Behavioural Implementation. ___________________________________________________________________________ ___________________________________________________________________________ 2. Create a survey on Aspects of Strategy Implementation. ___________________________________________________________________________ ___________________________________________________________________________ 13.8UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is Strategy Formulation? 2. What is Strategy Implementation? 3. Define the term Behavioural? 4. Define Resource Allocation? 5. Write down the main aim of Performance budgeting? 225 CU IDOL SELF LEARNING MATERIAL (SLM)

Long Questions 1. Explain the interdependence between strategy formulation and strategy implementation. 2. Illustrate the scope of strategy Implementation. 3. Illustrate the Limitations to strategy implementation. 4. Explain the model of strategy implementation. 5. Examine the Disadvantages of budgeting. B. Multiple Choice Questions 1. When using goal setting in performance management, the goals should be a. Difficult b. Doable c. Challenging d. All of these 2. Who is the primary person responsible for doing the actual appraising of an employee's performance? a. The employee's direct supervisor b. The company appraiser c. The human resource manager d. The eeo contact person 3. Which of the following is not a role played by the HR department regarding performance appraisals? a. Training of supervisors b. Monitoring the appraisal system c. Appraising of employees. d. Ensuring compliance with EEO laws 4. When designing an actual appraisal method, the two basic considerations are a. Who should measure and when to measure? b. When to measure and what to measure c. What to measure and who should measure d. What to measure and how to measure 5. Which performance appraisal technique lists traits and a range of performance? 226 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Alternation ranking b. Graphic rating scale c. Likert d. Constant sum rating scale Answers 1-d, 2-c, 3-d, 4-b, 5-b 13.9 REFERENCES References book  Kotler, Philip. 2008. Marketing management. Upper Saddle River, NJ: Prentice Hall.  Lane, Peter, and Michael Lubatkin. 1998. Relative absorptive capacity and interorganizational learning. Strategic Management Journal.  Lerner, A.P. 1934. The concept of monopoly and the measurement of monopoly power. The Review of Economic Studies. Textbook references  Levitt, Theodore. 1960. Marketing myopia. Harvard Business Review (July/ August). Repr., Boston: Harvard Business School Press, 2004.  Liebowitz, Jay. 1999. Knowledge management handbook. CRC.  Lippman, S. A., Rumelt, R. P. 1982. Uncertain imitability: An analysis of interfirm differences in efficiency under competition. Bell Journal of Economics. New York. Website  https://www.businessmanagementideas.com/strategic-management/strategy- implementation/strategy-implementation/21447  https://www.managementstudyguide.com/strategy-implementation.htm  https://www.termscompared.com/strategy-formulation-vs-strategy-implementation/ 227 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 14: EVOLUTION AND CONTROL STRUCTURE 14.0 Learning Objectives 14.1 Introduction 14.2 Strategic Evolution and Control: An Overview, 14.3 Technique of Strategic Evolution and Control 14.4 Summary 14.5 Keywords 14.6 Learning Activity 14.7 Unit End Questions 14.8 References 14.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Appreciatethe concept of Strategic Evolution.  Illustrate the Technique of Strategic Evolution and Control.  Explain the Control: An Overview on strategy. 14.1 INTRODUCTION A strategy is a route to a destination; an objective is the destination. Picking a destination is the choice of an objective. Selecting a route represents a decision. Driving along it is the implementation of the decision. Of course, both decision and implementation are necessary if you are to reach your strategic objective. Strategic management is an artful blending of insightful analysis and learning used by managers to create value from the skills and resources which they control. According to Kenneth Hatten, strategic management is the process by which an organisation formulates objectives and manages to achieve them. Strategy is the means to an organisational end; it is the way to achieve organisational objectives. The evolution of strategic management can be traced in two contexts—management practices adopted over the period of time by different organizations and strategic management education. It may be mentioned here that practice and theory in management go in the same 228 CU IDOL SELF LEARNING MATERIAL (SLM)

direction though there may be a time gap between the two. Therefore, it is beneficial to trace evolution and development in both these contexts. A strategy is a route to a destination; an objective is the destination. Picking a destination is the choice of an objective. Selecting a route represents a decision. Driving along it is the implementation of the decision. Of course, both decision and implementation are necessary if you are to reach your strategic objective. Strategic management is an artful blending of insightful analysis and learning used by managers to create value from the skills and resources which they control. In the management literature, techniques for making decisions in various functional areas have been evolved considerably over the period of time beginning with development of management thought. However, development of techniques for making integrative decisions could not follow this pattern. Much later, the emphasis on making these decisions in a scientific way has led to the development of a new field of study- business policy or similar other nomenclatures like corporate planning, corporate strategy, and strategic planning. Out of these, the term business policy became more common. However, the current trend shows that the term strategic management has replaced the term business policy and wherever business policy nomenclature is followed; its emphasis is on strategic management. This is due to the fact that business policy prescribes guidelines for making decisions and taking actions and, therefore, lacks the dynamism which is required to manage businesses in the present globalized economy which is characterized by intense competition. It may be mentioned that this kind of change has taken place in functional areas too, for example, personnel management has become human resource management and production management has become production/operations management. Here, it is just sufficient to say that strategic management is the process of relating an organization with its environment by suitable courses of action involving strategy formulation and its implementation. The evolution of strategic management can be traced in two contexts management practices adopted over the period of time by different organizations and strategic management education. It may be mentioned here that practice and theory in management go in the same direction though there may be a time gap between the two. Therefore, it is beneficial to trace evolution and development in both these contexts. 14.2 STRATEGIC EVOLUTION AND CONTROL: AN OVERVIEW Strategic evaluation refers to the measurement and testing the efficiency of strategic decisions and the effective implementation of business strategy to achieve desired business objectives. It is advisable to identify the corrective steps and actions to achieve business efficiency. It is considered as the final step of strategy management process. Strategic management concentrates on formulating organisational objectives based on an analysis of the business (internal and external) environment, formulating the plans and policies, controlling and 229 CU IDOL SELF LEARNING MATERIAL (SLM)

implementing the action plans to achieve the business results. Continuous evaluation and monitoring is essential requirement of strategic management process. The strategic evaluation and controlling process indicates the organization whether the organizational objectives are achieved or not. The evaluation system concentrates on three main aspects of strategy such as appropriate strategy, consistency and feasibility of strategy. Strategy should be appropriate to achieve desired objectives of the organization and it should be formulated as per the available resources and analyses of the internal and external business environment. It should be feasible which implies easy implementation of the strategic decision with available resources of the organization. Strategic management is continuous nature of management process. Strategic evaluation is considered as the last stage under the strategy management process. If there is difference between desired objectives and achieved objectives, controlling process indicates steps for corrective actions. Strategic evaluation and control process provides the right paths and directions to achieve desired organisational goals. The controlling process makes sure about corrective strategies and actions are required to achieve organisational target. Today, it also indicates process of improvement in order to preclude out of control situations from occurring and to continually provide greater value to customers” 14.3 TECHNIQUE OF STRATEGIC EVOLUTION AND CONTROL Strategic controlling is the process of monitoring and checking the performance of strategic decisions, ensuring the effective implementation of strategic plans and polices, identifying the problems and to take corrective actions whenever required for achieving the desired organizational objectives. In other words it describes the controlling system for the effective implementation. Some of the definition of strategic control is stated below: Strategic evaluation and control can be defined as the process of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective action wherever required. Actually, it is a system of monitoring, supervision, and follow-up. It is a way to manage the execution of your strategic plan. As a management process, it’s unique in that it’s built to handle unknowns and ambiguity as it tracks a strategy’s implementation and subsequent results. The purpose of strategic control is to identify whether the organization should continue with its present strategy or modify it is the light of changed circumstances. Control tools and techniques help managers pinpoint the organizational strengths and weaknesses on which useful control strategy must focus. 14.4 SUMMARY  The business environment is the current context in quite complex, volatile uncertain and ambiguous. Change is inevitable and occurs very frequently. The organisation has to continually adapt itself to adapt to the changing requirements of the environment. 230 CU IDOL SELF LEARNING MATERIAL (SLM)

Strategic evaluation is a complex system to undertake for the effective implementation of management strategy and analyses for strategic decisions. There is need of evaluation for the smooth functioning of strategic decisions and checking to achieve the set objectives of the organization. It is essential to involve and cooperation from allthe people of the management. They should understand the evaluation process for the effective implementing the strategy for the benefits of all stakeholders of the organization. The strategic evaluation identifies the corrective steps and actions to achieve business efficiency and effectiveness.  The strategic evaluation is not only focused to measure the result but also provides the right paths and directions to achieve desired organisational goals. The output of strategic evaluation is feedback which provides essential inputs for the future strategic decisions or plans and polices of the organization.  The process of strategic evaluation starts with formulation of strategic decisions and plans as per the available resources and analysis of the business environment to achieve the desired organisational objectives. After the formulation of strategic plan the next step is effective implementation of strategic plans within available resources to achieve desired result within stipulated time.  The social environment of business encompasses the values, attitudes, beliefs, wants, and desires of the consuming public. The demographics that describe the American population by gender, age, ethnicity, location, occupation, education and income are constantly evolving. The American population is steadily becoming more ethnically diverse:  Strategic evaluation process is to measure the efficiency and effectiveness of strategic decisions. It identifies the desired results achieved by the strategies decisions are not. It is being provided the right paths and directions to achieve desired organisational goals. The strategic evaluation and Controlling process indicates the organization whether achieved or not the organizational objectives. The evaluation system has concentrate of three mainly aspect s of strategy such as Appropriate strategy, Consistency and feasible of strategy. Strategy should be appropriate to achieve desired objectives of the organization and it should frame and formulate as per the available resources and analyses the internal and external business environment. The controlling process makes sure about corrective strategies and actions are required to achieve organisational target. It is related two concepts; one is Strategic management set desired organisational goals and the other one is controlling process for the accomplishment of management goals. Operational control is part of Management control system. 231 CU IDOL SELF LEARNING MATERIAL (SLM)

14.5 KEYWORDS  Value Chain – The process steps by which a company moves from the identification of its customer needs to customer fulfilment.  Value Proposition – Describes how an organization intends to differentiate itself in the marketplace and what particular value it will deliver to customers. Many organizations choose one of three “value disciplines” operational excellence, product leadership, or customer intimacy.  Vision – A concise statement defining an organization’s long-term direction, the vision is a summary statement of what the organization ultimately intends to become five, 10 or even 15 years into the future. It is the organization’s long-term “dream,” what it constantly strives to achieve. A powerful vision provides everyone in the organization with a shared mental framework that helps give shape to its abstract future.  Market positioning - The process of identifying and occupying a distinct niche or place in the market for products and services in order to achieve an advantage over competing products and services.  Measure - A Measure is a quantifiable value that is used to track and manage operations or assess strategic performance. 14.6 LEARNING ACTIVITY 1. Create a session on Strategic Evolution. ___________________________________________________________________________ ___________________________________________________________________________ 2. Create a survey on Control of Strategic Evolution. ___________________________________________________________________________ ___________________________________________________________________________ 14.7UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is formulation of strategy? 2. What is Strategic Evolution? 3. Define the term Evolution? 232 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Define the term control in Evolution? 5. Write the main aim of Strategic Evolution? Long Questions 1. Elaborate the importance of strategic evaluation. 2. Discuss briefly the process of strategic evaluation. 3. Illustrate the different steps of strategic control process. 4. Explain different types of Strategic Control. 5. Explain the Techniques of Strategic Evaluation and control. B. Multiple Choice Questions 1. Which helps the managers to determine whether the overall strategy is progressing as desired or whether there is need for readjustment? a. Milestone reviews b. Premise control c. Special alert control d. Monitoring strategic thrusts 2. Which of these deal with the impact of strategy formulation on strategy implementation? a. Forward linkages b. Backward linkages c. Both (a) & (b) d. Only a 3. Which process simply makes the individuals or organizations aware of the necessity for change & prepares them for such a change? a. Unfreezing b. Change in new situation c. Refreezing d. None of these 4. Which is the issue to be considered in strategy implementation? 233 a. Project implementation b. Procedure implementation c. Resource allocation d. All of these CU IDOL SELF LEARNING MATERIAL (SLM)

5. Which one of the following is not a component of a good business mission statement? a. Identification of the company’s philosophy, i.e. Its approach to business b. Communication of key values c. A statement of financial assets d. Close linkage to critical success factors Answers 1-d, 2-a, 3-a, 4-d, 5-c 14.8 REFERENCES References book  Mahoney, J. 1995. The management of resources and the resource of management. Journal of Business Research.  Mahoney, J., and J. Pandian. 1972. The resource-based view of the firm within the conversation of strategic management. Strategic Management Journal.  Mallor, Jane P. 2002. Business law: The ethical, global, and e-commerce environment. New York: McGraw-Hill. Textbook references  Mann, Michael. 1966. Seller concentration, barrier to entry and rates of return in thirty industries. Review of Economics and Statistics.  Markides, Constantinos C., and Peter J. Williamson. 1996. Corporate diversification and organizational structure: A resource-based view. Academy of Management Journal.  Nelson, Brian. 2006. Law and ethics in global business integrating corporate governance into business decisions. Routledge Website  https://kkhsou.ac.in/eslm/E-SLM-for- Learner/3rd%20Sem/Master%20Degree/MBA%203rd%20Sem/Business%20policy% 20and%20strategic%20Management/BP&SM%20- 2/BPSM%20PDF%20file/BPSM%20Block-2/Unit-15.pdf  44a4bxedxPwGQtSnEzGzdejnCdtrDJqkJ6uqWwGbXmdx5zrjGdHivmr9pyd7x8rVQ MgumwGPCfuwseieCg8tuN5jNNeMJPU 234 CU IDOL SELF LEARNING MATERIAL (SLM)

 https://www.researchgate.net/publication/273757341_Strategic_Management_and_Str ategic_Planning_Process/link/550a8c7f0cf26198a63b0fb1/download 235 CU IDOL SELF LEARNING MATERIAL (SLM)