MNG3702-EXAM PACK.

MNG3702-EXAM PACK. Topic 1: 1. Explain what strategic implementation entails (5)  Strategic implementation is the process that turns strategic plans into a series of actions tasks and ensures that these tasks are executed in such a way that the objectives of the strategic plan are achieved.  It entails the communication, interpretation, adoption and enactment of strategic plans.  It is the phase in which management aligns strategic leadership, organisational culture, organisational structures, reward systems, policies and resource allocation with the chosen strategy.  It involves taking management form thinking to actually doing.  It involves management developing short term objective and policies.  It is the most important phase in the strategic management process. 2. Differentiate between strategic planning and strategy implementation (8) Strategic Planning Strategy implementation 1 Is the intellectual or thinking phase The thinking phase in which these thoughts are operationalised and turned into action. 2 Is mostly a market driven activity with an external focus Is an internal, operational driven activity. 3 Requires good intuitive and analytical skills Requires strong motivation and leadership skills. 4 Well structured, rational and controlled Not so well structured, rational and controlled. 5 Takes place at top management and senior management The responsibility of all levels of management and the entire work force is involved. 6 Focus on effectiveness Focus on efficiency 7 Positioning forces before the action Managing forces during the action 8 Requires co-ordination among a few individuals Requires co-ordination among many individuals Page 1 of 41 Created by Rashida Olivier 3. Discuss the strategy implementation challenges and problems (barriers) that organizations face in the contemporary business environment (15)  The challenges are as follows: (7)  Lack of resources  Poor leadership  The strategy is poorly communicated  As the strategy is cascaded down the organisation, critical issues become lost in translation  Actions required for implementation are not clearly defined  Organisational culture is not aligned to the strategy  Reward and incentive systems are not aligned to strategic goals.  Too much emphasis is place on strategic planning and too little time is allocated for strategic implementation.  The problems (barriers) of successful strategic implementation are: (8)  Vision Barrier  Failure to communicate the vision and strategy may confuse the work force.  If lower levels of management and the work force do not know or understand the organisations vision and strategy, they won’t understand their role in the implementation process.  Management Barrier  Too often executives are focused on solving short term problems and not enough time is spent on strategic management.  Some executives that were promoted from the functional areas and tent to remain involved in functional issues.  Resource Barrier  Resource allocation plans or budgets are not linked to the chosen strategies.  Resources are not allocated in support of the strategy.  People Barrier  About 75% of managers do not have rewards and incentives inked to strategies.  Key responsibilities of employees are not clearly defined. 4. Explain the different types of strategic change and the issues involved (10)