Nikita Verma_32_Strategic_management_asst1.pptx

Operationalizing the strategy

1. Operationalizing strategy Operationalizing strategy refers to the process of allocating resources to support the chosen strategy . This process include the various management activities that are necessary to put strategy into motion, institute strategic controls that monitor progress and ultimately achieve organizational goals.

2. Following steps are involved operationalizing the strategy ⦁ Setting annual objectives ⦁ Formulation of functional strategies ⦁ Formulation of business policies ⦁ Resources allocation and action plans.

3. Setting annual objectives Setting the annual objectives guide implementation by translating long-term objectives into current targets. Setting the annual objectives play following important role in operationalizing the strategy ⦁ Define the organization's relationship with its environment. ⦁ Help the organization to pursue its vision and mission. ⦁ Provide the basis for strategic decision making. ⦁ Provide the standards for performance appraisal and control. ⦁ Help the organization to determine functional priority.

4. Formulation of functional strategies Functional strategy refers to the set of strategic initiatives taken in particular department of a business. A functional strategy is the short-term game plan for a major functional area within a company. Functional strategies must be developed in the following areas: ⦁ Finance ⦁ Marketing ⦁ Production/operations ⦁ Research &Development ⦁ Human Resource.

5. Formulation of business policies Policy refers "to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work towards stated goals. Business policies help for operationalizing the strategies in following ways: ⦁ Policy institutionalizes strategy-supportive practices and operating procedures throughout the organization. ⦁ Policy reduces uncertainty in repetitive and day-to-day activities in the direction of efficient strategy execution. ⦁ Policy limits independent action and discretionary decision and behavior. Procedures establish steps how things are to be handled.

6. Resources allocation and action plans Resource allocation and action plans are the crucial factors for strategy execution. Accomplishment of an organization's objectives depends on real value of resource allocation and the action plans. following factors may prohibit effective resource allocation ⦁ an over-protection of resources ⦁ too great emphasis on short-run financial criteria ⦁ organizational politics ⦁ vague strategy targets ⦁ a reluctance to take risks ⦁ a lack of sufficient knowledge.

7. Thank You