STRATMA 1.5

• Is a process by which strategies and policies are put into action through the development of programs, budgets, and procedures

  Strategy implementation
• This process might involve changes within the overall culture, structure, and/or management system of the entire organization.

  Strategy implementation
• the implementation of strategy is typically conducted by __________, with review by top management

  middle- and lower-level managers
• Sometimes referred to as ______, strategy implementation often involves day-to-day decisions in resource allocation.

  operational planning
• Is a statement of the activities or steps needed to accomplish a single- use plan.

  Programs
• It makes a strategy action oriented.

  program
• It may involve restructuring the corporation, changing the company’s internal culture, or beginning a new research effort.

  program
• is a statement of a corporation’s programs in terms of dollars

  Budgets
• Used in planning and control, a budget lists the detailed cost of each program.

  Budgets
• Many corporations demand a certain percentage return on investment, often called a _____ before management will approve a new program.

  “hurdle rate,”
• This ensures that the new program will significantly add to the corporation’s profit performance and thus build shareholder value

  hurdle rate
• not only serves as a detailed plan of the new strategy in action, it also specifies through pro forma financial statements the expected impact on the firm’s financial future.

  budget
• Procedures is sometimes termed as?

  Standard Operating Procedures (SOP)
• are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done.

  Procedures
• typically detail the various activities that must be carried out in order to complete the corporation’s program.

  Procedures
• is a process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance

  Evaluation and control
• Managers at all levels use the resulting information from this to take corrective action and resolve problems.

  Evaluation and control
• is the final major element of strategic management

  Evaluation and control
• it can also pinpoint weaknesses in previously implemented strategic plans and thus stimulate the entire process to begin again.

  Evaluation and control
• is the end result of activities.

  Performance
• It includes the actual outcomes of the strategic management process.

  Performance
• As a firm or business unit develops strategies, programs, and the like, it often must go back to revise or correct decisions made earlier in the process.

  FEEDBACK/LEARNING PROCESS
• usually indicates that something has gone wrong with either strategy formulation or implementation.

  poor performance
• It could also mean that a key variable, such as a new competitor, was ignored during environmental scanning and assessment.

  poor performance
• The distinguishing characteristic of strategic management is its emphasis on?

  strategic decision making.
• deal with the long-run future of an entire organization

  strategic decisions
• Strategic decisions are unusual and typically have no precedent to follow.

  Rare
• strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels.

  Consequential
• Strategic decisions set precedents for lesser decisions and future actions throughout an organization.

  Directive
• three characteristics of strategic decisions

  Rare, Consequential, and Directive
• Strategy Implementation Include?

  Programs, Budgets, and procedures