Strategic Management
Strategic management is the set of managerial and strategic decision-making processes that promote sustainable organization growth and profitability. Strategic management involves the following tasks:
A firm’s successive strategies are greatly affected by its past history of implemented and executed strategic decisions which determines its current state, emergent strategy, and actual/realized strategy. It is important to reexamine past assumptions, and compare actual results with earlier hypotheses. The primary focus then is to successfully position the organization as a whole in a rapidly changing business environment; during this process the organization as a system itself is changing either as a result of external forces or through internal forces.
Strategic management is the set of managerial and strategic decision-making processes that promote sustainable organization growth and profitability. Strategic management involves the following tasks:
- Deciding what business the company will be in and forming a strategic vision of where the organization needs to be headed - in effect, setting the organization with a sense of purpose, providing long-term direction, and establishing a clear mission to be achieved.
- Coverting the strategic vision and mission into measurable objectives and performance targets.
- Crafting a strategy to achieve the desired results.
- Implementuing and executing the chosen strategy efficiently and effectively.
- Evaluating the performance, reviewing new developments, and initiating corrective adjustments in long-term direction, objectives, strategy, or implementation in light of actual experience, changing conditions, new ideas, and new opportunities.
A firm’s successive strategies are greatly affected by its past history of implemented and executed strategic decisions which determines its current state, emergent strategy, and actual/realized strategy. It is important to reexamine past assumptions, and compare actual results with earlier hypotheses. The primary focus then is to successfully position the organization as a whole in a rapidly changing business environment; during this process the organization as a system itself is changing either as a result of external forces or through internal forces.
Strategy Formulation & Evaluation
Strategy formulation is one of the co-incident processes of strategy management, and involves the definition of corporate strategy, and generation of competitive strategies and options that if followed would lead to achieving the corporate objectives. Strategy formulation is primarily an intellectual and creative act involving the analysis of known strategic problems identified and defined through diagnosis of strategic issues and events. It is entrepreneurial in nature and requires great deal of analysis, judgment, and innovation. Developing strategic vision and mission, establishing objectives, and deciding on a strategy are examples of basic direction-setting tasks. In essense they map out where the organization is headed, its short-range and long-range performance targets, and the competitive moves and internal action approaches to be used in achieving the targeted results. Together, they constitute a strategic plan.
Strategy-Making/Formulation Process
Strategy-making entails the process of crafting a strategy to achieve desired results as specified by the mission and vision. This is a dynamic process involving strategic analysis, decision-making and "strategizing". The formulation steps include:
The process brings into play the critical managerial issue of how to achieve the targeted results in light of the organization's situation and prospects. There is always enough uncertainty about the future that managers cannot plan every strategic action in advance and pursue their intended strategy without alteration. Successful strategy formulation produces a clear set of recommendations, with supporting justifications, that revise as necessary the mission, its supply of resources and objectives (in meeting the expectations of the stakeholders). Objectives are the "ends," and strategy is the "means" of achieving them.
Strategy Formulation Modeling Methods
Strategy can be considered to exist at three levels in an organization, i.e., corporate level, business level, and functional level. Strategy modeling involves the crafting of strategies in terms of "means"-"ends" model, integrating corporate, business and competitive into strategic options, and translating selected options into functional strategies. A company's strategy can be viewed as decisions in key decision areas of strategic management. A company's strategies concern how:
The strategy goals model defines a network of actionable decisions (options) about markets market positioning, products, growth and competitive strategic options resulting from the formulation process. A strategic option is a set of of related options that form a potentially strategy.
Modeling Formulation of Corporate Level Strategy
Corporate level strategy focuses on determining which businesses the company should be in. It sets the long-term direction and scope of the whole organization. The corporate strategy is expressed in terms of answers that management seek to key questions such as:
Modeling Formulation of Business/competitive Level Strategy
Business level strategy is primarily concerned with how a particular business unit should compete within its industry, and what its strategic aims and objectives should be. A business strategy is constrained by strategic limitations placed on it by the corporate strategy, and the operations strategy. The business strategy is expressed in terms of answers that management seek to questions such as:
Competitive strategy may be interpreted as, the set of decisions on what action to take to achieve a specified objective at some future time, in some desired but uncertain future situation. This interpretation of the word/concept is consistent with all usage of the term in areas such as game theory, game plays (i.e., in chess, football, soccer, etc.), military strategy, business competitive strategy, personal growth/development strategy, organization growth/development strategy, etc.
Integrated Model of Corporate and Business Strategy
The corporate strategy/options (decision choices) frame and guide the decisions and choices that a company’s corporate executives, functions, and staff make every day including how they run operations, what they buy, what markets they enter, how they measure success, etc. The business strategy options drive marketing function level decisions and goals which in turn influences the other functional strategies - i.e., the decisions that business unit management teams, functions, and staff make every day including pricing, R&D, who should be the customer, what should be the value proposition, where to manufacture, etc.
In modeling strategy at the formulation stage, we are trying to modify the current objectives and strategies (options) in ways to make the organization more successful. The options network defines a view of the intended target states (goals) and their contribution relations (influence relations) links to the expected outcomes (objectives) of the business organization. The strategy model is expressed as an intentional goal model using the strategic goal dependency relations modeling methods. The options network may include possibly decisions about product and services and market segments, market mix, product positioning, etc.
Strategic Choice - Chosen Strategy for Implementation
Strategic choice refers to the decision-making process of selecting strategic option for implementation. Selecting a given approach from "approaches" (or means) among all options and choices that can be made at a given point in time; that "approach" becomes the "strategy". Every decision, every action taken from then on, will be based on (or aligned with) the "strategy". The selected strategic options are analyzed to determine the following: (1) offering quality products and services that customers will need in the future, (2) taking advantage of new technology, (3) being prepared for future environmental factors or calamities, (4) responding to possible new substitutes or the predatory actions of rivals, (5) anticipating future needs before competitors do.
The strategic options are evaluated and compared based on the following criteria:
Strategic decision-making is an ongoing cognitive process whose outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision’s outcomes. These recursive relationships between decisions, decision outcomes, and effects of other actors' behavior make strategic decisions messier and complex.
Strategy Analysis and Evaluation
The strategy model can be analyzed to assess the soundness the strategic alternatives (options) with respect to the following criteria:
The whole point about strategy is that the critical factors determining its quality are often not directly observable or simply measured; and by the time strategic opportunities/threats do directly affect operating results, it may well be too late for an effective response.
Strategy formulation is one of the co-incident processes of strategy management, and involves the definition of corporate strategy, and generation of competitive strategies and options that if followed would lead to achieving the corporate objectives. Strategy formulation is primarily an intellectual and creative act involving the analysis of known strategic problems identified and defined through diagnosis of strategic issues and events. It is entrepreneurial in nature and requires great deal of analysis, judgment, and innovation. Developing strategic vision and mission, establishing objectives, and deciding on a strategy are examples of basic direction-setting tasks. In essense they map out where the organization is headed, its short-range and long-range performance targets, and the competitive moves and internal action approaches to be used in achieving the targeted results. Together, they constitute a strategic plan.
Strategy-Making/Formulation Process
Strategy-making entails the process of crafting a strategy to achieve desired results as specified by the mission and vision. This is a dynamic process involving strategic analysis, decision-making and "strategizing". The formulation steps include:
- Clarifying the Vision and Mission - This involves the identification and formulation of the organization's vision which sets out the reasons for the organization's existence and the "ideal" state that the organization aims to achieve; the mission identifies and formulates major goals and performance objectives.
- Defining Values and Principles - Every organization has values, and these values should be coherent with the strategy. Values assessment involves looking into the personal values of the members of the organization, organization values, and the organization's operating philosophy.
- SWOT Analysis - This involves analyzing the organization's external/internal environments to identify any opportunities and/or threats; and continuous monitoring of environments conditions for changes in environments' factors that may affect your organizations performance.
- Strategic Options Development- This involves analyzing strategic issues and crafting strategies to respond to identified problems in areas such as corporate strategy, business/competitive strategies, and functional strategies. Corporate strategy includes decisions about the markets in which the firm will compete, against whom, and how. Corporate strategy is about domain selection, business/competitive strategy is about how the company will compete against rival firms in order to create value for customers. Companies can increase the value of what they offer customers by decreasing the costs of their goods and services (cost leadership strategy), or by increasing the benefits their products/services provide (Differentiation Strategy), or some combination of the two.
- Strategic Choice - Selection of strategic options that look at (1) offering quality products and services that customers will need in the future, (2) taking advantage of new technology, (3) being prepared for future environmental factors or calamities, (4) responding to possible new substitutes or the predatory actions of rivals, (5) anticipating future needs before competitors do.
The process brings into play the critical managerial issue of how to achieve the targeted results in light of the organization's situation and prospects. There is always enough uncertainty about the future that managers cannot plan every strategic action in advance and pursue their intended strategy without alteration. Successful strategy formulation produces a clear set of recommendations, with supporting justifications, that revise as necessary the mission, its supply of resources and objectives (in meeting the expectations of the stakeholders). Objectives are the "ends," and strategy is the "means" of achieving them.
Strategy Formulation Modeling Methods
Strategy can be considered to exist at three levels in an organization, i.e., corporate level, business level, and functional level. Strategy modeling involves the crafting of strategies in terms of "means"-"ends" model, integrating corporate, business and competitive into strategic options, and translating selected options into functional strategies. A company's strategy can be viewed as decisions in key decision areas of strategic management. A company's strategies concern how:
- How to grow the business.
- How to respond to changing market conditions.
- How to manage each functional piece of the business.
- How to achieve strategic and financial objectives.
The strategy goals model defines a network of actionable decisions (options) about markets market positioning, products, growth and competitive strategic options resulting from the formulation process. A strategic option is a set of of related options that form a potentially strategy.
Modeling Formulation of Corporate Level Strategy
Corporate level strategy focuses on determining which businesses the company should be in. It sets the long-term direction and scope of the whole organization. The corporate strategy is expressed in terms of answers that management seek to key questions such as:
- What business should the organization be in?
- What business should we acquire or divest?
- What should be the organization’s comparative advantage in adding value to its individual businesses? How do we allocate resources between businesses?
- What should be the capabilities that distinguish the organization? What is the relationshiop between businesses?
Modeling Formulation of Business/competitive Level Strategy
Business level strategy is primarily concerned with how a particular business unit should compete within its industry, and what its strategic aims and objectives should be. A business strategy is constrained by strategic limitations placed on it by the corporate strategy, and the operations strategy. The business strategy is expressed in terms of answers that management seek to questions such as:
- Who should be the customers that define the target market?
- What should be the value proposition that differentiates the products and services offered to those customers? What is the mission of this business? What are the strategic objectives of this business?
- What should be the capabilities that make our business better than any other in delivering that value proposition? How do we compete in this business?
Competitive strategy may be interpreted as, the set of decisions on what action to take to achieve a specified objective at some future time, in some desired but uncertain future situation. This interpretation of the word/concept is consistent with all usage of the term in areas such as game theory, game plays (i.e., in chess, football, soccer, etc.), military strategy, business competitive strategy, personal growth/development strategy, organization growth/development strategy, etc.
Integrated Model of Corporate and Business Strategy
The corporate strategy/options (decision choices) frame and guide the decisions and choices that a company’s corporate executives, functions, and staff make every day including how they run operations, what they buy, what markets they enter, how they measure success, etc. The business strategy options drive marketing function level decisions and goals which in turn influences the other functional strategies - i.e., the decisions that business unit management teams, functions, and staff make every day including pricing, R&D, who should be the customer, what should be the value proposition, where to manufacture, etc.
In modeling strategy at the formulation stage, we are trying to modify the current objectives and strategies (options) in ways to make the organization more successful. The options network defines a view of the intended target states (goals) and their contribution relations (influence relations) links to the expected outcomes (objectives) of the business organization. The strategy model is expressed as an intentional goal model using the strategic goal dependency relations modeling methods. The options network may include possibly decisions about product and services and market segments, market mix, product positioning, etc.
Strategic Choice - Chosen Strategy for Implementation
Strategic choice refers to the decision-making process of selecting strategic option for implementation. Selecting a given approach from "approaches" (or means) among all options and choices that can be made at a given point in time; that "approach" becomes the "strategy". Every decision, every action taken from then on, will be based on (or aligned with) the "strategy". The selected strategic options are analyzed to determine the following: (1) offering quality products and services that customers will need in the future, (2) taking advantage of new technology, (3) being prepared for future environmental factors or calamities, (4) responding to possible new substitutes or the predatory actions of rivals, (5) anticipating future needs before competitors do.
The strategic options are evaluated and compared based on the following criteria:
- Suitable - Does it fit with the vision and mission?
- Acceptable - Does it fit with the values of the company and the employees?
- Understandable - Is it stated simply and easy to understand?
- Flexible - Can it be adapted and changed as needed?
Strategic decision-making is an ongoing cognitive process whose outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision’s outcomes. These recursive relationships between decisions, decision outcomes, and effects of other actors' behavior make strategic decisions messier and complex.
Strategy Analysis and Evaluation
The strategy model can be analyzed to assess the soundness the strategic alternatives (options) with respect to the following criteria:
- Consistency - The strategy must not represent mutually inconsistent goals and policies.
- Consonance - The strategy must represent adaptive response to the external environment and to the critical changes occurring within it as defined by the SWOT Analysis information..
- Advantage - The strategy must provide for the creation and/or maintenance of a competitive advantage in the selected areas of activity.
- Feasibility . The strategy must neither overtax available resources not create unsolvable sub-problems.
The whole point about strategy is that the critical factors determining its quality are often not directly observable or simply measured; and by the time strategic opportunities/threats do directly affect operating results, it may well be too late for an effective response.
Strategy Implementation
Strategy implementation consists of all the decisions and activities under taken at all levels in the organization required to produce strategic assets (as outputs) that close the implementation gap (difference between the development capacity the strategy calls for, and the current endowment of resources, policies, and governance mechanisms), and can be deployed into operations to successfully turn the formulated corporate and business strategies into reality.
Strategy Implementation Process
Strategy implementation involves the process of translating selected strategic choices - the set of two strtegic choices for corporate and business strategy respectively - resulting from strategy formulation into organizational actions/methods that if followed would realize those strategic choices. It is a continuous process of closing the gap between where the company is, and what the selected corporate and business strategic choices call for. The implementation process involves the following steps:
The implementation process provides the connecting loop between strategy formulation and strategy execution and control. Successful implementation may result in changes to one or more of the elements of the operating model such as organization structure, culture and values (ways of working), accountability, and governance mechanisms and organizational behavior, as well as the operating system - joint configuration of people, processes, technology that result a set of competencies required to deliver the mission. Strategy implementation output includes, in addition to the changes to the organization operating model and operating system, action plans that realize the organization's goals and objectives. The action plan is a schedule of actions to be taken, and policies and procedures that guide resource allocation and prioritization decisions. Implementation to be successful requires clear and constant communication as well as motivated organization to get the whole organization to support and carry out the implementation process. Once the strategy is implemented the organization must execute the strategy i.e., do things (decisions and activities taking place) in the context of implemented strategy
The corporate, business, and functional strategies are then passed down (cascaded through) the organization structure in steps, with each level/layer of management adding details that define their won operations and set the context for lower decisions.
Strategy Implementation Analytic System Model
Strategy implementation is the responsibility of top, middle and lower level managers focused on the creation of new strategic assets and/or enhancement and strengthening an existing strategic assets needed by the entity in order to maintain its ability to achieve future outcomes. From an organization's viewpoint, if it has the capabilities, enterprise advantage, and business portfolio it wants as defined by the chosen corporate strategic options then its corporate strategy is fully implemented. If the business unit has the customers, value position, and skills it has chosen to have, its business strategy is also implemented. Technically, a strategy can never actually be fully implemented because every thing that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategies call for. Closing this gap is implementation. Successful strategy implementation is key for any organization's survival; and involves the development of policies, procedures and practices that aim at moving the organization towards its strategic objectives and goals.
The implementation model is a goals network of major milestones to be achieved by accomplishing the connected network of actions that define major efforts required to make progress towards the strategic goals. Initiatives are defined by activities, outputs, resource requirements, performance metrics, timeline, milestones, etc. A simulation of the implementation plan can help inform managers' understanding of factors that can influence the success/failure of strategy at implementation and provide guidance to management decision making. It is usually very difficult due to the fact that it is not readily obvious to middle and lower level managers what behavior is expected of them by top management to successfully implement the strategy.
Strategy Implementation Evaluation and Control
Strategy implementation evaluation ensures that all key supporting elements of the business systems including Measures and Rewards, Structures and Processes, Culture and People are aligned behind the chosen strategies and hinged on the mission, vision, values and critical success factors (CSF) of the organization. The evaluation and control process is concerned with defining, attaining, and presenting constructive information for reviewing alternatives to the analyzed action plan. The evaluation method assists managers in deciding whether or not the chosen strategies are steering the organization in the right direction towards achieving the strategic objectives and mission, The evaluation method is comprised of the activities defined by the process steps below.
Evaluation Process Steps
The implementation evaluation method provides an intuitive and model-driven approach to assess the execution feasibility of the chosen strategy implementation. It is improtant to note that for a given organization and business environment not all strategies are executable. The evaluation method allows an organization to take into consideration a lot of the points that can influence successful implementation before an ideal strategy can be implemented.
Strategy implementation consists of all the decisions and activities under taken at all levels in the organization required to produce strategic assets (as outputs) that close the implementation gap (difference between the development capacity the strategy calls for, and the current endowment of resources, policies, and governance mechanisms), and can be deployed into operations to successfully turn the formulated corporate and business strategies into reality.
Strategy Implementation Process
Strategy implementation involves the process of translating selected strategic choices - the set of two strtegic choices for corporate and business strategy respectively - resulting from strategy formulation into organizational actions/methods that if followed would realize those strategic choices. It is a continuous process of closing the gap between where the company is, and what the selected corporate and business strategic choices call for. The implementation process involves the following steps:
- Clarifying the strategic choice (selected strategies) strategic goals and objectives - These are brief statements of what top management wants to achieve in terms through the selected options about products and services to offer and in which markets; what resources, capabilities, and competencies are needed to support these products and services; how to acquire or build these resources.
- Translate the strategic goals of the selected strategic choices into functional/division goals and strategies of the functional areas identified and defined by the operations infrastructure established as a result of the operations strategy design. The functional objectives define specific milestones for achieving the strategic objectives. The functional area goals are statements of what needs to be done to implement strategy. Functional areas established by the infrastructure design may vary from company to company, but typically may include marketing, personnel, finance, production, plant/facility, etc.
- Progressively translate the top level functional goals into tactical goals - statements of what actions need to taken - to implement the goals of each of the functional areas. define the actions - what needs to be done to achieve the top level goals. Tactical planning takes a company's strategic plan and sets forth specific short-term action and plans, usually by company department or function. The tactical plans are short-term in nature and specify what the company needs to do, the order of the steps needed to accomplish those tasks, and the personnel and tools needed to meet the organization's strategic goals. Top and Middle Management assigns ownership and accountability for each action to one or more positions in the organization. These positions and the organization units are defined by the Operating Model's organization structure. The tactical planing horizon is shorter than the strategic plan horizon.
- Operational planning is the process of linking strategic goals and objectives to tactical goals and objectives. It involves decisions on how to improve organization's performance and efficiency in creating and delivering value to customers. It focuses on the firm's products and services, and develops plans to maximize e.g., market share, revenue, profits, etc. The Operations Plan describes milestones, conditions for success and explains how or what portions of a strategic plan will be put into operation during a given operations period. The operations plan is a basic tool that directs the day-to-day activities of organizational staff. An operational plan addresses four basic questions: Where are we now? Where do we want to be? GHow do we get there? How do we measure our progress? The operations plan transforms visionary ideas into reality. In an operations plan, objectives and tactics are assigned to specific individuals with deadlines for accomplishment. Enacting the operations plan involves allocation of resources to carry out the actions in achieving the goals. The Operational Plan is organized around Key Results Areas which are areas of business operations where it is profoundly important to achieve results. The operational plan is only as good as the diligence of the staff in putting it into action. Management within the organization must thoroughly communicate operational plan to staff. The implementation of the Operational Plan requires management to regularly monitor achievement and exert control to reduce any variance from the plan..
- Strategic Gap Analysis - This analytical process involves assessment of the current state and desired target future state to determine any gaps - the difference between the existing current operating model and the target operating model that the strategy call for; if there are no gaps the strategy is implemented, otherwise any identified implementation gaps are closed through strategic initiatives, programs and projects aimed at enhancing existing capacity and/or building new capacity.Develop performance measurement system, selecting the right metrics to provide quantitative means of reviewing, evaluating and updating actions, improvement objectives, strategic goals, and process performance.
- Aligning performance appraisal and reward systems.
- Monitoring the progress of strategy implementation.
The implementation process provides the connecting loop between strategy formulation and strategy execution and control. Successful implementation may result in changes to one or more of the elements of the operating model such as organization structure, culture and values (ways of working), accountability, and governance mechanisms and organizational behavior, as well as the operating system - joint configuration of people, processes, technology that result a set of competencies required to deliver the mission. Strategy implementation output includes, in addition to the changes to the organization operating model and operating system, action plans that realize the organization's goals and objectives. The action plan is a schedule of actions to be taken, and policies and procedures that guide resource allocation and prioritization decisions. Implementation to be successful requires clear and constant communication as well as motivated organization to get the whole organization to support and carry out the implementation process. Once the strategy is implemented the organization must execute the strategy i.e., do things (decisions and activities taking place) in the context of implemented strategy
The corporate, business, and functional strategies are then passed down (cascaded through) the organization structure in steps, with each level/layer of management adding details that define their won operations and set the context for lower decisions.
Strategy Implementation Analytic System Model
Strategy implementation is the responsibility of top, middle and lower level managers focused on the creation of new strategic assets and/or enhancement and strengthening an existing strategic assets needed by the entity in order to maintain its ability to achieve future outcomes. From an organization's viewpoint, if it has the capabilities, enterprise advantage, and business portfolio it wants as defined by the chosen corporate strategic options then its corporate strategy is fully implemented. If the business unit has the customers, value position, and skills it has chosen to have, its business strategy is also implemented. Technically, a strategy can never actually be fully implemented because every thing that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategies call for. Closing this gap is implementation. Successful strategy implementation is key for any organization's survival; and involves the development of policies, procedures and practices that aim at moving the organization towards its strategic objectives and goals.
The implementation model is a goals network of major milestones to be achieved by accomplishing the connected network of actions that define major efforts required to make progress towards the strategic goals. Initiatives are defined by activities, outputs, resource requirements, performance metrics, timeline, milestones, etc. A simulation of the implementation plan can help inform managers' understanding of factors that can influence the success/failure of strategy at implementation and provide guidance to management decision making. It is usually very difficult due to the fact that it is not readily obvious to middle and lower level managers what behavior is expected of them by top management to successfully implement the strategy.
Strategy Implementation Evaluation and Control
Strategy implementation evaluation ensures that all key supporting elements of the business systems including Measures and Rewards, Structures and Processes, Culture and People are aligned behind the chosen strategies and hinged on the mission, vision, values and critical success factors (CSF) of the organization. The evaluation and control process is concerned with defining, attaining, and presenting constructive information for reviewing alternatives to the analyzed action plan. The evaluation method assists managers in deciding whether or not the chosen strategies are steering the organization in the right direction towards achieving the strategic objectives and mission, The evaluation method is comprised of the activities defined by the process steps below.
Evaluation Process Steps
- Define the strategy to evaluate - Managers need to specify the implemented strategy and the progress results that need to be evaluated. Such results have to be objectively measureable and consistent; and can be defined using goals modeling.
- Outline Predetermined Standards - Managers need to outline standards according to the chosen implemented strategy. These standards often consist of a tolerance of range which define adequate variations.
- Obtain data to Map Out Onto Set Standards - Data to obtain consists of results from the actions taken on the chosen strategies.
- Measure Performance - Assess the performance of the mapped out data.
- Performance Match Standards -if the performance of the identified strategy achieves the standards within the tolerance range then the process stops here; otherwise, Take Corrective Action.
- Take Corrective Action - The performance measured does not achieve the standards; managers must take necessary actions to resolve and amend the implementation Process.
The implementation evaluation method provides an intuitive and model-driven approach to assess the execution feasibility of the chosen strategy implementation. It is improtant to note that for a given organization and business environment not all strategies are executable. The evaluation method allows an organization to take into consideration a lot of the points that can influence successful implementation before an ideal strategy can be implemented.
Effective Strategy Execution
Strategy execution is one of the three (3) co-incident determinants of the strategic management process including strategy formulation and implementation. Strategy execution is the result of the decisions and activities undertaken at all levels in the organization and involves top management through middle management, and front-line managers and workers to turn implemented strategy into commercial/social success - i.e., the best possible results a strategy and its implementation will allow.
Strategy Execution Process
Strategy execution is a decision-making process involving the thousands of decisions made every day by line managers, and employees acting according to information they may have, and their own self-interest as influenced by organizational culture, and constrained by policies and procedures that implement top management and middle management decisions. The actual strategy of an organization emerges from execution. Successful strategy execution requires an implemented and sound strategy that has been approved, and consists of decisive decisions and activities and other such things as leaders do to get results from the employees of their companies such as:
Strategy Execution Modeling
The execution decisions and actions are all activities needed to produce results within the context of an implemented strategy. Essentially, strategy execution is about decision-making - timeliness and speed of management decisions - on the prioritization, and continuous allocation of resources to perform selected organization initiatives/actions that change the organization from a current-state to a new future state with enhanced strategic assets which in turn contribute to improvements in the creation and delivery of value to customers and stakeholders. A brilliant strategy, blockbuster product, or breakthrough technology can put you on the competitive map, but only effective execution can keep you there. An organization has to be able to deliver on its intent. Since each organization is different and faces unique set of internal and external variables/challenges, there is no universal solution to the strategy execution problems and challenges.This requires an execution system with the appropriate building blocks that support executive and help them influence the actions of employees that that lead to effective execution.
Modeling Strategic Decision-Making & Decisions
Strategic decisions are the product (outputs) of strategic decision-making processes. Strategic decision-making is an ongoing cognitive process whose outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision’s outcomes. Strategic decisions deal with the future and always represent risk. They typically involve high degree of uncertainty, high stakes, major resource implications, and long-term consequences. These recursive relationships between decisions, decision outcomes, and effects of other actors' behavior make strategic decisions messier and complex. Strategic decisions are long-term in their impact; they affect and change the direction of the whole business/organization. They are difficult or expensive to reverse because they substantially alter (and irrevocably so in the short run) the relationships between the decision makers' organization and customers, competitors, etc.
Examples of Strategic Decisions and Decision-Making
Strategic decisions are among the main means through which management choices are actually realized. A decisive strategic decision is one that is “important in terms of the actions taken, the resources committed, or the precedents set”. Strategic decision-making processes can be identified by the strategic 'issues', events or factors that trigger them. These triggers may include observed issues such as decrease in sales or sales growth, a new product entry by competitor(s); and events such as request for action from executive management, or simply a regular planning cycle. Examples of strategic decisions include:
Strategic decisions always represent risk because they deal with the future and changes in behavior of organizations and institutions which cannot be predicted with any degree of certainty. The outcomes of strategic decisions are usually contingent on the behavior of other actors affected by the decisions and the decisions’ outcomes. These recursive relationships between decisions, decision outcomes and effects of other actors’ behavior make strategic decisions and decision-making messier and more complex than operational decisions, and highly prone to failure. In addition, the changes resulting from strategic decisions are difficult and expensive to reverse because they substantially alter (and irrevocably so in the short run) the relationships between the decision maker’s organization and environmental actors such customers, competitors, etc.
Execution Systems
Strategy/Strategic Plan execution require the cooperation and collaboration of the human actors that comprise the organizational social network and employ technical systems and tools such as software systems in performing their respective responsibilities and obligations.
The strategy execution system is a social system comprising a network of human systems comprising the people at all levels in the organization; accountable for making timely, critical, and decisive decisions on what goals to pursue, priorities of tasks and activities to perform in their daily endeavors.
The execution system is comprised of fundamental building blocks that enable executive management to influence the actions of employees in all areas of the organization that result in effective execution and successful emergent strategy. The building blocks include:
These capabilities are inextricably linked. Unclear decision rights not only paralyzes decision making but also information flow, divorce performance from rewards, and prompt work arounds that subvert formal reporting lines. Blocking information results in poor decisions, limited career (or capacity) development, and a reinforcement of structural silos.
Evaluating Strategy Performance and Company's Health
Execution control requires constant monitoring of the progress of the strategy, its implementation and execution to assess whether the planned results are being achieved. The control system is comprised of the following dimensions:
Performance indicators such as customer satisfaction is influenced greatly by day-to-day decisions of front-line employees (i.e., a barber) responding to a customer requests, and in so doing making a choice about how to represent the company - a choice directly related to the fundamental value proposition the company is offering.
Strategy execution is one of the three (3) co-incident determinants of the strategic management process including strategy formulation and implementation. Strategy execution is the result of the decisions and activities undertaken at all levels in the organization and involves top management through middle management, and front-line managers and workers to turn implemented strategy into commercial/social success - i.e., the best possible results a strategy and its implementation will allow.
Strategy Execution Process
Strategy execution is a decision-making process involving the thousands of decisions made every day by line managers, and employees acting according to information they may have, and their own self-interest as influenced by organizational culture, and constrained by policies and procedures that implement top management and middle management decisions. The actual strategy of an organization emerges from execution. Successful strategy execution requires an implemented and sound strategy that has been approved, and consists of decisive decisions and activities and other such things as leaders do to get results from the employees of their companies such as:
- Setting goals and objectives for the corporation and business such as increase market share, strengthening financial resources, etc., to set direction and guide day-to-day decisions.
- Cascading strategies - This involves breaking down the strategic objectives into smaller chunks for the next organization level, and then down organization units within that level onto the positions within these units; these positions define the responsibility and capability required by human resources that fill those position and perform the tasks/activities that achieve the assigned objectives. At the functional level the objectives should be aligned horizontally and vertically.
- Communicating Strategy - This involves communicating vision, mission, and strategic objectives throughout all levels in the organization as soon as a new strategy (or update to exisiting strategyg) is finalized and approved by all stakeholders.
- Managing Initiatives - This involves selecting, prioritizing, and executing the right initiatives; those that would lead to the realization of the strategic objectives..
- Establish right incentive and reward system, and aligning them with employee performance.
- Monitoring - Monitor the key performance indicators defined for the organization's strategic measures, and track progress towards achieving the mission. This includes monitoring employee performance and providing feedback on performance in such a manner to reinforce positive behavior and outcomes; acknowledge and celebrating success.
- Execution and Control - Controlling strategy execution is done through regular strategy execution review meetings using periodic (often monthly or weekly) progress reports or dashboards for executives and managers.
Strategy Execution Modeling
The execution decisions and actions are all activities needed to produce results within the context of an implemented strategy. Essentially, strategy execution is about decision-making - timeliness and speed of management decisions - on the prioritization, and continuous allocation of resources to perform selected organization initiatives/actions that change the organization from a current-state to a new future state with enhanced strategic assets which in turn contribute to improvements in the creation and delivery of value to customers and stakeholders. A brilliant strategy, blockbuster product, or breakthrough technology can put you on the competitive map, but only effective execution can keep you there. An organization has to be able to deliver on its intent. Since each organization is different and faces unique set of internal and external variables/challenges, there is no universal solution to the strategy execution problems and challenges.This requires an execution system with the appropriate building blocks that support executive and help them influence the actions of employees that that lead to effective execution.
Modeling Strategic Decision-Making & Decisions
Strategic decisions are the product (outputs) of strategic decision-making processes. Strategic decision-making is an ongoing cognitive process whose outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision’s outcomes. Strategic decisions deal with the future and always represent risk. They typically involve high degree of uncertainty, high stakes, major resource implications, and long-term consequences. These recursive relationships between decisions, decision outcomes, and effects of other actors' behavior make strategic decisions messier and complex. Strategic decisions are long-term in their impact; they affect and change the direction of the whole business/organization. They are difficult or expensive to reverse because they substantially alter (and irrevocably so in the short run) the relationships between the decision makers' organization and customers, competitors, etc.
Examples of Strategic Decisions and Decision-Making
Strategic decisions are among the main means through which management choices are actually realized. A decisive strategic decision is one that is “important in terms of the actions taken, the resources committed, or the precedents set”. Strategic decision-making processes can be identified by the strategic 'issues', events or factors that trigger them. These triggers may include observed issues such as decrease in sales or sales growth, a new product entry by competitor(s); and events such as request for action from executive management, or simply a regular planning cycle. Examples of strategic decisions include:
- New Business Investment Decision - (e.g., acquisitions, mergers, Joint Ventures, New Company Establishment).
- Investment in capital equipment or new capability.
- Investment in the marketing domain - (e.g., New Products Introduction, New Marketing Channels, etc.).
- Internal Organization Investments - (e.g., internal reorganization, investments in new information Systems, etc.)
Strategic decisions always represent risk because they deal with the future and changes in behavior of organizations and institutions which cannot be predicted with any degree of certainty. The outcomes of strategic decisions are usually contingent on the behavior of other actors affected by the decisions and the decisions’ outcomes. These recursive relationships between decisions, decision outcomes and effects of other actors’ behavior make strategic decisions and decision-making messier and more complex than operational decisions, and highly prone to failure. In addition, the changes resulting from strategic decisions are difficult and expensive to reverse because they substantially alter (and irrevocably so in the short run) the relationships between the decision maker’s organization and environmental actors such customers, competitors, etc.
Execution Systems
Strategy/Strategic Plan execution require the cooperation and collaboration of the human actors that comprise the organizational social network and employ technical systems and tools such as software systems in performing their respective responsibilities and obligations.
The strategy execution system is a social system comprising a network of human systems comprising the people at all levels in the organization; accountable for making timely, critical, and decisive decisions on what goals to pursue, priorities of tasks and activities to perform in their daily endeavors.
The execution system is comprised of fundamental building blocks that enable executive management to influence the actions of employees in all areas of the organization that result in effective execution and successful emergent strategy. The building blocks include:
- Clarifying decision rights and norms - How decisions are made; How people instinctively act or take action.
- Information flows and Mindsets - How data and knowledge are processed; How people make sense of their work and environment.
- Motivators and Commitments - How people are encouraged to perform; How people are inspired to contribute.
- Organizational Structure and Network - How work and responsibilities are allocated; How connections are made beyond the organizational chart.
These capabilities are inextricably linked. Unclear decision rights not only paralyzes decision making but also information flow, divorce performance from rewards, and prompt work arounds that subvert formal reporting lines. Blocking information results in poor decisions, limited career (or capacity) development, and a reinforcement of structural silos.
Evaluating Strategy Performance and Company's Health
Execution control requires constant monitoring of the progress of the strategy, its implementation and execution to assess whether the planned results are being achieved. The control system is comprised of the following dimensions:
- Planning Control - These are indicators that allow organizations to monitor and measure planning premises such as environmental factors and industry factors.
- Implementation Control - These are indicators that provide feed-forward information to inform decisions on whether the strategy should be changed in light of unfolding events and results from incremental steps. The basic types of implementation control are: strategic thrusts (new or key strategic programs/initiatives performance, and Milestones Reviews).
- Strategic Surveillance - These are indicators that provide information designed to safeguard the established strategy in a continuous way. They allow the organization to monitor a broad range of events and conditions inside and outside the company that are likely threaten the successful achievement of the firm's strategic objectives. This provides the opportunity to uncover important, yet unanticipated information.
Performance indicators such as customer satisfaction is influenced greatly by day-to-day decisions of front-line employees (i.e., a barber) responding to a customer requests, and in so doing making a choice about how to represent the company - a choice directly related to the fundamental value proposition the company is offering.
Operations Strategy
Strategy in a business organization is about how the organization seeks to survive and prosper within its environment over the long-term. The decisions and actions taken within operations have a direct impact on the basis on which an organizattion is able to do this (survive and prosper).
Operations strategy defines how an entire business will allocate its resources to support operations and its strategic goals. Operations strategy binds the various operations decisions and actions (in various functional areas and departments) into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive/strategic priorities chosen and communicated by the corporate or business strategy.
Strategy in a business organization is about how the organization seeks to survive and prosper within its environment over the long-term. The decisions and actions taken within operations have a direct impact on the basis on which an organizattion is able to do this (survive and prosper).
Operations strategy defines how an entire business will allocate its resources to support operations and its strategic goals. Operations strategy binds the various operations decisions and actions (in various functional areas and departments) into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive/strategic priorities chosen and communicated by the corporate or business strategy.
Operations Strategy Design
Operations strategy is designed by managers either formally following the general principles of strategy design, or it emerges as a result of management decisions. A top-down design approach however, involves senior management formally defining the mission, then progressively expanding this to give the corporate, business, and functional strategies. Once organizational purpose/mission, corporate strategy, business and competitive strategy, and values are clear, the organization can be structured in such a way that roles and functions are clearly defined and differentiated, lines of communications and accountability untangled, and decision-making procedures transparent and functional. Operations strategy design starts with qualitative arguments to characterize the appropriate types of resources, processes, and competencies. An example of key qualitative argument is provided by the principle alignment or strategic fit. By design, operations strategy relates to competitive strategy; but what precisely should this relationship be?
Operations strategy design involves design decisions that relate to key decision areas of operations management. These areas can be divided into ten (10) categories under the two broad neadings: structure (the physical attributes operations), and infrastructure (the people and systems of operations).
The actual operations strategy eventually emerges over time (from a bottom-up perspective) as a result of the sum of the practical decisions made, and actions taken by managers in continually responding to actual conditions and problems as they arise in the organization. Operations strategies focus on maximizing the efficiency and effectiveness of production while minimizing operating costs. Operations strategy is the collective concrete actions chosen, mandated, or stimulated by corporate strategy.
The task of operations strategy is to design the "Operating System" (operations system) of an organization. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over organizational members’ behaviors.
Operations strategy is concerned with setting policies and developing plans for using organization resources to best support the firm's long-term competitive strategy. Infrastructure decisions involve the logic associated with the planning and control systems, quality assurance and control approaches, work payment structures, and organization of the operations functions such as marketing, human resources, production, etc.
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Operations strategy inextricably connects the interplay between strategic management activities (i.e., making decisions, allocating resources, and directing activities of the workforce) with focus on how to best enable and implement the organization's strategy, and operations management activities (i.e., making decisions, allocating resources, and directing activities of the workforce) with focus on providing the best match of supply with demand in creating and delivering value to customers while meeting stakeholders' expectation. Operations strategy binds the various operations decisions and actions into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive/strategic priorities chosen and communicated by the corporate or business strategy.
The long-term concerns of operations strategy is for how to best determine and develop the firm's major operations resources so that there is a high degree of compatibility between these resources and the business strategy. Some very broad questions are addressed regarding how major resources should be configured in order to achieve the firm's corporate objectives. Some of the issues of relevance include: long-term decisions regarding capacity, location, processes, technology, and timing.
Modeling Operations Strategy
Operations strategy defines how an entire business will allocate its resources to support operations and its strategic goals. Operations strategy binds the various operations decisions and actions (in various functional areas and departments) into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive/strategic priorities chosen and communicated by the corporate or business strategy.
Modeling Operations Strategy Infrastructure
There may also be options on what resources and capacities are needed and how to build these implementation options.
Operations strategy is designed by managers either formally following the general principles of strategy design, or it emerges as a result of management decisions. A top-down design approach however, involves senior management formally defining the mission, then progressively expanding this to give the corporate, business, and functional strategies. Once organizational purpose/mission, corporate strategy, business and competitive strategy, and values are clear, the organization can be structured in such a way that roles and functions are clearly defined and differentiated, lines of communications and accountability untangled, and decision-making procedures transparent and functional. Operations strategy design starts with qualitative arguments to characterize the appropriate types of resources, processes, and competencies. An example of key qualitative argument is provided by the principle alignment or strategic fit. By design, operations strategy relates to competitive strategy; but what precisely should this relationship be?
Operations strategy design involves design decisions that relate to key decision areas of operations management. These areas can be divided into ten (10) categories under the two broad neadings: structure (the physical attributes operations), and infrastructure (the people and systems of operations).
The actual operations strategy eventually emerges over time (from a bottom-up perspective) as a result of the sum of the practical decisions made, and actions taken by managers in continually responding to actual conditions and problems as they arise in the organization. Operations strategies focus on maximizing the efficiency and effectiveness of production while minimizing operating costs. Operations strategy is the collective concrete actions chosen, mandated, or stimulated by corporate strategy.
The task of operations strategy is to design the "Operating System" (operations system) of an organization. Within the structure, rules, policies, and procedures are uniformly and impersonally applied to exert control over organizational members’ behaviors.
Operations strategy is concerned with setting policies and developing plans for using organization resources to best support the firm's long-term competitive strategy. Infrastructure decisions involve the logic associated with the planning and control systems, quality assurance and control approaches, work payment structures, and organization of the operations functions such as marketing, human resources, production, etc.
<<>>
Operations strategy inextricably connects the interplay between strategic management activities (i.e., making decisions, allocating resources, and directing activities of the workforce) with focus on how to best enable and implement the organization's strategy, and operations management activities (i.e., making decisions, allocating resources, and directing activities of the workforce) with focus on providing the best match of supply with demand in creating and delivering value to customers while meeting stakeholders' expectation. Operations strategy binds the various operations decisions and actions into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive/strategic priorities chosen and communicated by the corporate or business strategy.
The long-term concerns of operations strategy is for how to best determine and develop the firm's major operations resources so that there is a high degree of compatibility between these resources and the business strategy. Some very broad questions are addressed regarding how major resources should be configured in order to achieve the firm's corporate objectives. Some of the issues of relevance include: long-term decisions regarding capacity, location, processes, technology, and timing.
Modeling Operations Strategy
Operations strategy defines how an entire business will allocate its resources to support operations and its strategic goals. Operations strategy binds the various operations decisions and actions (in various functional areas and departments) into a cohesive consistent response to competitive forces by linking firm policies, programs, systems, and actions into a systematic response to the competitive/strategic priorities chosen and communicated by the corporate or business strategy.
Modeling Operations Strategy Infrastructure
There may also be options on what resources and capacities are needed and how to build these implementation options.
Function Level Strategy
Functional strategies reflect that strategic and tactical objectives typically require the involvement of multiple functional areas (i.e., departments, divisions, branches, etc.). The tactical plan divides the strategic plan into the tasks and objectives of each functional area defined to support achievement of strategic objectives. Function level strategy is concerned with how each individual function (i.e., marketing, operations, human resources, finance, etc.) contributes to the business strategy, what their strategic objectives should be, and how they should manage their resources in pursuit of those objectives. Functional level strategy advocates for the business to see its management decisions as specific to a functional area of the organization such as marketing, human resources, public relations, etc.
The function level strategy is expressed in terms of answers management seek to questions such as:
Function level strategies are modeled by the specified intended objectives and goals. The objectives state through outcomes "where" the company intends to be at some specific time in the future. Function level strategic goals state "what" is to be achieved in a functional area and "when" results are to be accomplished. A Functional Strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual departments and their employees.
Functional strategies define policies and procedures as well as plans for function areas such as HR, Marketing, Product Development, Production, IT, etc., necessary and essential for creating and managing the development of policies, regulations, strategies and programs for implementation of strategies. Some examples of functional organization units may include:
Non-Marketing Function Level Strategies are derived from Operations Strategy and/or Marketing Strategy; and they must support the marketing strategy that in turn, is a component of the overall business strategy. Each functional area or department is assigned the specific goals and objectives it must achieve to support the higher-level strategies. Functional areas of a business that are commonly assigned function-specific goals are human resources, production, research and development, marketing, and information technology. The functional areas that have strategies formulated, depend on the strategic plan itself and varies by industry, organization, or size.
Modeling Marketing Strategy
Marketing strategy is focused on determining customer needs in an area where the company has a competitive advantage as defined by the business strategy. Such advantages might be in location, facilities, reputation, or staffing. The marketing strategy is the foundation for creating awareness, generating interest, closing new sales, and continuing customer engagement. The marketing strategy guides your company culture, your products and services mix, and pricing.
The marketing function level strategy is based on answers to the following key foundational questions:
Marketing level strategies are modeled by the specified intended outcomes in terms of objectives and marketing goals. The objectives state through outcomes "where" the company intends to be at some specific time in the future. Marketing level strategic goals state "what" is to be achieved in a marketing functional area and "when" results are to be accomplished. A Marketing Strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual marketing departments and their employees.
The marketing strategy at the functional level influences the other functions and their strategies. Once marketing strategy has identified the kind of product/service customers want, it passes the information to operations to design and produce such a product at the required cost. The advertising department must develop a promotional strategy; sales must sell the product, and customer service must support it. The marketing strategy forms the basis for the strategies of these other departments and functions. Non-Marketing Function Level Strategies are derived from Operations Strategy and/or Marketing Strategy; and they must support the marketing strategy that in turn, is a component of the overall business strategy.
Functional strategies reflect that strategic and tactical objectives typically require the involvement of multiple functional areas (i.e., departments, divisions, branches, etc.). The tactical plan divides the strategic plan into the tasks and objectives of each functional area defined to support achievement of strategic objectives. Function level strategy is concerned with how each individual function (i.e., marketing, operations, human resources, finance, etc.) contributes to the business strategy, what their strategic objectives should be, and how they should manage their resources in pursuit of those objectives. Functional level strategy advocates for the business to see its management decisions as specific to a functional area of the organization such as marketing, human resources, public relations, etc.
The function level strategy is expressed in terms of answers management seek to questions such as:
- How does the function contribute to the business strategy?
- What are the strategic objectives of the function?
- How are resources managed in the function?
- What technology do we use in the function?
- What skills are required by workers in the function?
Function level strategies are modeled by the specified intended objectives and goals. The objectives state through outcomes "where" the company intends to be at some specific time in the future. Function level strategic goals state "what" is to be achieved in a functional area and "when" results are to be accomplished. A Functional Strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual departments and their employees.
Functional strategies define policies and procedures as well as plans for function areas such as HR, Marketing, Product Development, Production, IT, etc., necessary and essential for creating and managing the development of policies, regulations, strategies and programs for implementation of strategies. Some examples of functional organization units may include:
- Marketing - Marketing strategy deals with product/service choices and features, pricing strategy, markets positioning strategy, distribution, and promotion considerations.
- Financial - Financial strategies include decisions about capital acquisition, capital allocation, dividend policy, and investment and working capital (cash flow) management.
- Production - Production or operations function strategies address choices about how and where the products or services will be manufactured or delivered, technology to be used, management of resources, plus purchasing and relationships with suppliers. For firms in high-tech industries,
- R&D - R&D strategy may be so central that many of the decisions will be made at the business or even corporate level, for example the role of technology in the company's competitive strategy, including choices between being a technology leader or follower. However, there will remain more specific decisions that are part of R&D functional strategy, such as the relative emphasis between product and process R&D, how new technology will be obtained (internal development vs. external through purchasing, acquisition, licensing, alliances, etc.), and degree of centralization for R&D activities.
- Human resources - Human Resources function strategy includes many topics, typically recommended by the human resources department, but requiring top management approval. Examples are job categories and descriptions; pay and benefits; recruiting, selection, and orientation; career development and training; evaluation and incentive systems; policies and discipline; and management/executive selection processes.
Non-Marketing Function Level Strategies are derived from Operations Strategy and/or Marketing Strategy; and they must support the marketing strategy that in turn, is a component of the overall business strategy. Each functional area or department is assigned the specific goals and objectives it must achieve to support the higher-level strategies. Functional areas of a business that are commonly assigned function-specific goals are human resources, production, research and development, marketing, and information technology. The functional areas that have strategies formulated, depend on the strategic plan itself and varies by industry, organization, or size.
Modeling Marketing Strategy
Marketing strategy is focused on determining customer needs in an area where the company has a competitive advantage as defined by the business strategy. Such advantages might be in location, facilities, reputation, or staffing. The marketing strategy is the foundation for creating awareness, generating interest, closing new sales, and continuing customer engagement. The marketing strategy guides your company culture, your products and services mix, and pricing.
The marketing function level strategy is based on answers to the following key foundational questions:
- What is your narrowly defined target customer?
- In which category does your business exist?
- What's your unique benefit?
- Who is your real competition?
- How are you clearly different from your competition?
Marketing level strategies are modeled by the specified intended outcomes in terms of objectives and marketing goals. The objectives state through outcomes "where" the company intends to be at some specific time in the future. Marketing level strategic goals state "what" is to be achieved in a marketing functional area and "when" results are to be accomplished. A Marketing Strategy, for any business, large or small, focuses the achievement of a goal on the skills and abilities of individual marketing departments and their employees.
The marketing strategy at the functional level influences the other functions and their strategies. Once marketing strategy has identified the kind of product/service customers want, it passes the information to operations to design and produce such a product at the required cost. The advertising department must develop a promotional strategy; sales must sell the product, and customer service must support it. The marketing strategy forms the basis for the strategies of these other departments and functions. Non-Marketing Function Level Strategies are derived from Operations Strategy and/or Marketing Strategy; and they must support the marketing strategy that in turn, is a component of the overall business strategy.
