What cases do that a simulation cannot is give class members broad exposure to a variety of companies and industry situations and insight into the kinds of strategy-related problems real-world managers face. But what a competition-based strategy simulation does far better than case analysis is thrust class members squarely into an active, hands-on managerial role where they are totally responsible for assessing market conditions, determining how to respond to the actions of competitors, forging a long-term direction and strategy for their company, and making all kinds of operating decisions.
Such diligent and purposeful actions on the part of company co- managers translate into a productive learning experience with strong retention of the lessons learned and higher achievement of course learning objectives.
The competitive nature of a strategy simulation arouses positive energy and steps up the whole tempo of the course by a notch or two. It is hard to duplicate the excitement and hallway chatter that occurs when the results of the latest decision round become available and co-managers renew their quest for strategic moves and actions that will strengthen company performance.
At the same time, class members become more receptive to reading the text chapters, listening to your lectures, and wrestling with assigned cases—partly in the hope they will come across ideas and approaches that will help their company outperform rivals and partly because they begin to see the practical relevance of the subject matter and the value of taking the course.
This translates into a livelier, richer learning experience from a student perspective and better instructor-course evaluations. Incorporating a fully automated online simulation reduces the time instructors spend on course preparation, course administration, and grading. The cases-for-simulation tradeoff is a sound one because class members will learn as much or more from their experience managing their simulation company and retain it longer, as compared to the learning gleaned from covering 4 to 6 more cases.
Such lab or in-class sessions provide a splendid opportunity for you to visit with teams, observe the interplay among co-managers, and view the caliber of the learning experience that is going on. Grading one less written case or essay exam or other written assignment saves enormous time. Once you enter percentage grading weights for each simulation activity in your online grade book, an overall numerical grade is automatically calculated for each class member.
Plus, every task can be performed from an ofice or home PC that has an Internet connection and an Internet browser. Special Note: Both simulations work especially well for online classes or in distance-learning situations.
This is because team members running the same company who are logged-in simultaneously on different computers at different locations have two tremendously valuable functional capabilities: 1.
They can click a button to work collaboratively in viewing reports and making decision entries. If one team member chooses to view a particular decision screen, that same screen appears on the monitors for all team members engaged in collaboration.
Each team member controls their own color-coded mouse pointer with their irst-name appearing in a color-coded box linked to their mouse pointer and can make a decision entry or move the mouse to point to particular on-screen items. They can click a second button to talk to one another using the built-in real time VOIP audio chat feature. Chat capability among team members working in Collaboration Mode enables team members to debate and discuss the merits of alternative decision entries and strategies.
In effect, they can have an online meeting to conveniently and effectively collaborate in running their simula- tion company as opposed to meeting face-to-face and gathering around a single computer. They can not only talk to the managers of a company but also enter Collaboration highly recommended because all attendees are then viewing the same screen but they also control their own red-colored mouse pointer linked to a red box labeled Instructor.
This instructor-friendly feature curtails having to schedule meetings with team members in your ofice should something arise that requires your participation. Even if you are not teaching an online course, you will that a big majority of class members will opt to take advantage of the built-in collaboration and voice chat features because the members of many company teams will like the convenience of having an online meeting to prepare their decision entries as opposed to having face-to-face meetings and gathering around a single computer either in the computer lab or at some other location of their choosing.
Moreover, the word about the effectiveness of using a top-notch strategy simulation seems to be spreading. These are both accessible directly from the simulation administration menu on the left-side of your Instructor Center screen.
Recommendations for handling each of the options are provided in the Quick Guide to Getting Started and on-screen guidance is also provided during the Course Setup procedure.
It will take you minutes or so to complete the Course Setup procedure the irst time you do it and about 15 minutes each time thereafter. The Help sections provide a detailed explanations of the information on each decision entry screen and all relevant cause-effect relationships, b detailed explanations of the information on each page of the Industry Reports, c detailed explanations of the numbers presented in the Company Reports, and d analytical guidance and decision-making tips.
Note: You have one-click access to all these same Help pages and all the video tutorials directly from the menu on the left side of your Instructor Center screen.
Because there is tight connection between the issues that co-managers face in running their companies and the chapter content in this text and most every other mainstream strategy text , there is ample opportunity—if you are so inclined—to use the happenings and managerial challenges class members encounter in the simulation as examples for your lectures.
You can also opt to issue special news lashes altering certain costs or import tariffs, and you may wish to offer to coach the co-managers of troubled companies on how to achieve better company performance. Once you enter weights for each of the assignments, inal scores for each class member are automatically calculated.
You will have to decide whether to scale the scores or not. Using a strategy simulation with a global industry setting is especially desirable because globalization of the marketplace is an ever-widening reality and global strategy issues are a standard part of the strategic management course.
Plus, of course, accreditation standards for business school programs routinely require that the core curriculum include international business topics and the managerial challenges of operating in a globally competitive marketplace.
Company Operations Companies begin the simulation producing branded and private-label footwear in two plants, one in North America and one in Asia. Management has the option to establish production facilities in Latin America and Europe-Africa as the simulation proceeds, either by constructing new plants or buying previously-constructed plants that have been sold by competing companies.
Private-label footwear must be produced to the speciications of chain footwear retailers with private label brands. If a company has more production capacity than is needed to meet the demand for its branded footwear, it can enter into competitive bidding for contracts to produce footwear sold under the private-label brands of large chain retailers.
Company co-managers exercise control over production costs based on the styling and quality they opt to manufacture, plant location wages and incentive compensation vary from region to region , the use of best practices and six sigma programs to reduce the production of defective footwear and to boost worker productivity, and compensation practices.
All newly-produced footwear is shipped in bulk containers to one of four regional distribution centers North America, Latin America, Asia-Paciic, and Europe-Africa.
All incoming orders from internet customers and retailers in a geographic region are illed from footwear inventories in that same regional distribution center. Since internet and retailer orders cannot be illed from inventories in a distribution center in another region because of prohibitively high shipping and distribution costs , company co-managers have to be careful to match shipments from plants to the expected internet and retailer demand in each geographic region.
Costs at the four regional distribution centers are a function of inventory storage costs, packing and shipping fees, import tariffs paid on incoming pairs shipped from foreign plants, and exchange rate impacts. The countries of North America, which strongly support free trade policies worldwide, currently have no import tariffs on footwear made in either Europe-Africa or Asia-Paciic.
Instructors have the option to alter tariffs as the game progresses. In running their footwear companies, the challenge for each management team is to craft and execute a competitive strategy that results in a respected brand image, keeps their company in contention for global market leadership, and produces good inancial performance as measured by earnings per share, return on equity investment, stock price appreciation, and credit rating.
All companies begin the exercise with equal sales volume, global market share, revenues, proits, costs, product quality and performance, brand recognition, and so on. However, market growth rates vary by geographic region, and growth rates are also affected by the aggressiveness with which companies go after additional sales by making their product offerings more appealing. On-Screen Support Calculations Each time co-managers make a decision entry, an assortment of on-screen calculations instantly shows the projected effects on unit sales, revenues, market shares, total proit, earnings per share, ROE, unit costs, and other operating outcomes.
All of these on-screen calculations help co-managers evaluate the relative merits of one decision entry versus another. Company managers can try out as many different decision combinations as they wish in stitching the separate decisions into a cohesive whole that is projected to produce good company performance.
The Quest for a Winning Strategy All companies begin the exercise with equal sales volume, global market share, revenues, proits, costs, product quality and performance, brand recognition, and so on. Each company typically seeks to enhance its performance and build competitive advantage based on some combination of selling its footwear at more attractive prices, offering a bigger selection of footwear styles and models, having more appealing footwear styling and quality, outspending rivals on advertising, offering bigger mail-in rebates, outbidding rivals in signing celebrities to endorse its brand, and so on for each of the various determinants of competitiveness.
Any and all competitive strategy options—low-cost leadership, differentiation, best-cost provider, focused low-cost, and focused differentiation—are viable choices for pursuing better company performance and competitive advantage in the branded footwear segment. It can focus sales efforts on one or two geographic regions or strive to build strong market positions in all four geographic regions. It can pursue essentially the same branded strategy worldwide or craft slightly or very different strategies for each of the four geographic regions.
Most any well-conceived, well-executed competitive approach in branded footwear is capable of succeeding, provided it is not overpowered by the opposing strategies of competitors or defeated by the presence of too many copycat strategies that dilute its effectiveness.
However, vigorous price competition prevails in the private-label segment. For obvious reasons, chain retailers prefer to source their requirements for private-label footwear from companies offering the best lowest prices. Then they must be successful in bidding against rival companies for contracts. Companies offering to supply speciied quantities of private-label footwear with lower price bids are awarded contracts over companies that bid higher prices.
A low-cost, low-price strategy is thus mandatory in the private- label segment if a company expects to be proitable but this does not require pursuing the same strategy in the branded segment. How the Outcomes Are Determined Instructors specify a deadline date and time for company co-managers to complete for each decision round and other related assignments. Instructors have the lexibility to change the deadlines at any time for any reason.
Decision rounds can be scheduled once per week, twice per week, daily, or even twice daily, depending on how you want to conduct the exercise. You will be able to peruse sample decision schedules when you are settling on the times and dates for the deadlines.
When the instructor-speciied deadline for a decision round arrives, the BSG algorithms allocate sales and market shares to the competing companies, region by region. The greater the differences in the overall competitiveness of the branded product offerings of rival companies, the bigger the differences in their resulting sales volumes and market shares.
Conversely, the smaller the overall competitive differences in the offerings of rival companies, the smaller the differences in sales volumes and market shares. The results of the decision round are available to class members and the instructor about minutes after the deadline passes. Special Note: The cause-effect relationships and underlying algorithms in The Business Strategy Game are based on sound business and economic principles and are closely matched to the real-world athletic footwear market.
The Business Strategy Game is predicated on the principle that the more BSG mirrors real-world market conditions and real-world managerial decision-making, the more pedagogical value it has. Time Requirements for Company Co-Managers Data from our servers indicates that each company team spends an average of about 2. The irst couple of decision rounds take longer not only because co-managers have to explore the menus, familiarize themselves with the information on the screens, and absorb the relevance of the calculations shown whenever new decisions are entered but also because it takes time for them to establish a working relationship with one another and debate what sort of long-term direction and strategy to pursue.
As discussed earlier, you can offset the hours students spend on the simulation by trimming the number of case assignments, eliminating a written case assignment which can take students hours to prepare , and perhaps allocating one or more regularly-scheduled class periods to having class members meet in a computer lab to work on their decisions or a 3-Year Strategic Plan assignment. All activity for The Business Strategy Game takes place at www.
Retail sales of digital cameras are seasonal, with about 20 percent of consumer demand coming in each of the irst three quarters of each calendar year and 40 percent coming during the big fourth-quarter retailing season. Company Operations Companies produce entry-level and multi-featured cameras in a Taiwan assembly facility and ship inished goods directly to camera retailers in North America, Asia-Paciic, Europe-Africa, and Latin America.
All cameras are assembled as retail orders come in and shipped immediately upon completion of the assembly process— companies maintain no inished goods inventories and all parts and components are delivered on a just-in-time basis which eliminates the need to track inventories and simpliies the accounting for plant operations and costs. Company co-managers determine the quality and performance features designed into the entry-level and multi- featured cameras that are produced.
They have the option to assemble all cameras in-house or to outsource a portion of the needed production to outside contractors. Because retailers place orders for cameras roughly 90 days in advance of expected sales, camera makers assemble and ship enough cameras in Quarter 1 to match expected retail sales in Quarter 2; they assemble and ship enough cameras in Quarter 2 to match expected retail sales in Quarter 3; and so on through Quarter 4—a condition that forces company managers to schedule camera assembly in a seasonal pattern that matches the seasonal demand of retailers and digital camera buyers.
Where appropriate, there are separate supporting calculations for the entry-level and multi-featured camera lines. The Quest for a Winning Strategy All companies begin the GLO-BUS exercise on the same footing from a global perspective—with equal sales volume, global market share, revenues, proits, costs, product quality and performance, brand recognition, and so on. But there is a fundamental difference in the competitive positions of rival companies that adds a realistic competitive dynamic—the percentages of cameras sold in the four geographic regions vary from company to company.
Starting the contest for global market leadership at a point where rival companies have different market shares in different geographic regions introduces an element of competitive reality. As with BSG, all the various generic competitive strategy options—low-cost leadership, differentiation, best-cost provider, focused low-cost, and focused differentiation—are viable choices for pursuing competitive advantage and good company performance.
A company can have a strategy aimed at being the clear market leader in either entry-level cameras or multi-featured cameras or both. It can focus on one or two geographic regions or strive to build strong market positions in all four geographic regions. It can pursue essentially the same strategy worldwide or craft customized strategies for the Europe-Africa, Asia-Paciic, Latin America, and North America markets.
Just as with The Business Strategy Game, most any well-conceived, well- executed competitive approach is capable of succeeding, provided it is not overpowered by the strategies of competitors or defeated by the presence of too many copycat strategies that dilute its effectiveness. How the Outcomes Are Determined When the instructor-speciied deadline for a decision round arrives, the GLO-BUS algorithms allocate sales and market shares in the entry-level and multi-featured segments to the competing companies, region by region.
The greater the differences in the overall competitiveness of the camera offerings of rival companies, the bigger the differences in their resulting sales volumes and market shares. Conversely, the smaller the overall competitive differences in the camera offerings of rival companies, the smaller the differences in sales volumes and market shares.
Once sales and market shares are awarded, the company and industry reports are then generated and all the results become available minutes after the decision deadline passes. Company performance is judged on ive criteria: earnings per share, return on equity investment ROE , stock price, credit rating and brand image.
Guidance about which simulation might be best for your course is provided later in this section. If you have not yet used either of the two simulations, you may ind the following of particular interest: n Each simulation has a minute video overview that introduces class members to the simulation, takes them of a tour of the website menus and accompanying screens, and helps get them off to a successful start.
There is also a minute orientation video for instructors. The Help pages for each decision entry screen also contain tips and suggestions for making wise decision entries. Setting up the simulation for your course is done online and takes about minutes. There is a 4-page Getting Started Guide for irst- time adopters that guides you through the steps to set up the simulation for your course, describes the administrative tasks, explains the scoring, and provides suggestions for using the simulation effectively.
Once the straight-forward Course Setup Procedure is completed, no other administrative actions on your part are required beyond that of moving participants to a different team should the need arise , keeping tabs on the outcomes of the decision rounds and how well the companies are doing to whatever extent desired , setting the grading weights for various simulation-related assignments, and using the automatically calculated numerical averages to determine the overall grades to assign class members on the entire simulation exercise.
The Instructor Center is the screen you are sent to when you enter your user name and password to log-in. Every function and feature that you need for using the simulation in your course is on the Instructor Center page or accessible from it. Once you enter percentage weights to put on each performance measure, overall scores are automatically calculated which you can scale or not as you see it.
Both participants and instructors conduct all activities online at www. All materials are delivered digitally to class members and instructors. Users of PCs without the needed version of Flash already installed will be automatically directed to the Flash site where the latest version can be downloaded and installed free of charge in a couple of minutes. The speed for participants using dial-up modems is quite satisfactory.
A headset is recommended for best results, but most laptops now are equipped with a built-in microphone and speakers that will support use of the voice-chat capability. Instructors who wish not only to talk but also enter Collaboration highly recommended because all attendees are then viewing the same screen have a red-colored mouse pointer linked to a red box labeled Instructor. There are sample outlines for semester-long courses, week or quarter-long courses and 5-week courses; each course outline consists of suggested activities and assignments for each and every class meeting.
If you have a large class and need more than 12 companies, the Course Setup procedure makes it simple to create two or more industries for your class. In a small class, there can be no fewer than 4 company teams—two-person teams will work just ine.
For classes with fewer than 8 students, please call us at or e-mail us at athompso cba. Complete results are available to company co-managers and the instructor minutes after the decision deadline.
Quiz 2 checks understanding of key aspects of company operations. The self-scoring quizzes are taken online, with scores reported instantaneously to participants and recorded in your online grade book.
The scores are recorded in your online grade book. Assigning completion of 3-year strategic plans is entirely optional—you can have company managers complete no plan, 1 plan, or 2 plans.
Peer evaluations are automatically scored on a scale of 1 to , and the scores are recorded in your online grade book. The combined information from the peer evaluations and the Activity Log provide good evidence about whether a co-manager was a strong or weak contributor. The LAR is useful in two very important respects. One, it provides you with a clear overview of how well your students rank relative to students at other schools worldwide who have gone through this same competition-based simulation exercise over the past 12 months.
Professors, department chairs, and deans at many business schools worldwide are engaged in developing ongoing evidence of whether their academic programs meet the Assurance of Learning Standards now being applied by the Association to Advance Collegiate Schools of Business AACSB ; a prime goal of this Learning Assurance Report is to contribute signiicantly to this effort. You can browse through the latest rankings by clicking on the Global Top Performers icon left- center of the homepage.
In order to understand strategic management, three theoretical bases must be mentioned. The approach includes the analysis of the operator and its environment SWOT , the formulation, implementation and control of the strategy. This approach is based on seizing and managing resources that will help the business develop a sustainable competitive advantage.
The stakeholder perspective centers the business on the network of contracts formed by mutual benefit relationships. The effective management of these relationships and the stakeholder network itself can improve competitive performance.
As can be seen, these approaches point to different aspects of gaining competitive advantage, which is the goal of strategic management. Most successful organizations have the resources and talents that provide a competitive advantage. Moreover, they are able to manage and satisfy large segments of the environment known as stakeholders. Because they lead the development of the strategies and the control of the executive. This unit is referred to when it comes to concepts related to strategic management.
You will learn some other concepts in our other units. Here, two concepts must be mentioned in order that strategic management can be understood better. These are basic skills and concepts of strategic intent. The development of strategic management has begun with the long-term planning of the majority of the business sectors. Most of the long-term planning enterprises appeared in the s.
It was very difficult to prepare the activity budgets without any data on future sales and cash flow. After World War II, economies grew and demand many products and services increased. Long-cycle demand forecasts have facilitated detailed marketing and distribution, production, human resources and financial planning developments for managers of growing organizations. The goal of long-term planning is to estimate the size of the claim to the business's products and services for a specific future timeframe and determine where that claim will emerge.
Many businesses use long-term planning to make decisions such as expanding their investments, hiring forecasts, capital needs, and so on. The underlying assumption of long-term planning is that it will continue to produce the operator's existing products and services, and for that reason, the key critical issue of the enterprise is ensuring consistency between demand and production capacity.
But the underlying assumption of strategic planning is that there are large-scale economic, social, political, technological and competitive changes in the environment. Although the strategies are usually based on a specific time frame, the primary focus of strategic planning is not on time. Competitive changes can sometimes occur in a few years. In this case, the useful life of existing strains can be shorter.
For this reason, "long-term" or "short-term" is preferable to explain the time required to achieve the strategy far from a type of planning. The strategic planning process provided a more systematic approach to managing these business units. Moving the planning and budgeting horizon beyond the traditional twelve- month operating period.
In addition, business managers learned only that financial planning was not a suitable framework. In the s, the concept of strategic planning expanded as strategic management. This development has revealed that environmental dynamics are not only important but that businesses can rediscover themselves as a whole. Continuous management and evaluation of the strategy is the key to success. Thus, we can say that strategic management will continue its long-term existence as a philosophy or approach to managing complex organizations Swayne et al.
Strategic planning Strategies and strategic decisions are the searches for the future of an enterprise in the long run. Strategic planning takes place at the center. Strategic planning is a disciplined struggle that involves a specific period and produces the main decisions and actions that shape and guide who is who, what they do, why they do it, and what they do. The organization is a management tool that helps you do your job better.
The organization provides the focus of energy; ensure that the members of the organization work for the same purpose; evaluate the organization's direction and, if necessary, reshape it in order to be able to give accurate answers to changing environmental conditions.
This process is strategic. Because the future conditions are already known and unknown, the organization includes the best preparation for meeting these environmental conditions.
Being strategic means, for that reason, to be clear about the goals of the organization, to be aware of the organization's resources, and to consciously respond to a dynamic environment. Planning is a process. This includes developing the desired objectives to be achieved and an approach to achieve those goals. This process requires discipline because a specific template or a specific sequence is followed in order to be focused and productive.
A number of questions are used in the process flow. These questions help the planners to take advantage of their experience, to test their assumptions, to gather and consolidate the information necessary for both the present and the foreseeable future. In this whole tactical plan lies at the lower end. An industrial organization may have a strategic plan to expand its current market within two years opening stores in other cities of the country.
In accordance with the operational plan to accompany him, he may want to win new clients next year. As a tactical step toward achieving this goal, the marketing department of the business may organize direct mail and television advertising campaigns for a month. It means that the planning and implementation processes are carried out skillfully; strategic, operational and tactical efforts to integrate seamlessly into all of the forward-looking activities of the organization.
The professional management of all organizations, whether for profit or not, requires a strategic mindset, a strategic plan and the implementation of this plan. Most organizations have a systematic competition form. Similarly, non-governmental organizations struggle to seize potential donations from individuals or corporations by addressing constant, mind, and volunteers.
Strategic action is more than just an answer. The organization must constantly adapt to changes in the external environment. The world of the organization is filled with the stories of closing or changing the organizations that can not see the need for this change or who can not have the mental and material resources to make this change.
Changes within the organization may also require strategic action. For example, the separation of a person in a critical position in a service operation or the separation of the retirement may affect the institution's reputation. In this case, an urgent strategic move may be needed.
It may be necessary to take a creative strategic action to find someone instead of this person or to maintain the current position of the business. From an optimistic point of view, employees are expected to integrate "what" and "what". Since strategic management is the way of organizing or philosophy, benefits can not always be expressed in numbers.
Below are the main benefits that strategic management can provide to organizations Dawid, However, it should not be forgotten that strategic management processes can fail for many reasons. Some of these reasons include the following. Figure 2. The strategic management model is not a series that ends after a certain period of time, but rather a cycle. Having these models alone does not guarantee the success of the business, but it provides a clear and practical approach to the creation, execution, and evaluation of the strategies.
The presentation of an enterprise's current vision, mission, objectives, and strategies should be the logical starting point for strategic planning because the current state and conditions of an operator may require the implementation of certain strategies or a certain course of action. Even if not prepared consciously, written and shared, each business has its vision, mission, goals, and strategy.
Depending on our long-term goals, studies are being conducted on which strategic options may be the subject. Based on certain criteria, it is determined which strategies will give the best results for the business, and that strategy will be put into practice. During the implementation of the strategies, the employees in the enterprise carry out their own activities. For example, the marketing department determines which products, which fiash to sell, and which qualities it should have.
The production department begins to produce the products with their features. The projected results must be assessed as a result of the implementation of the selected strategy. This is actually a feedback. According to the results obtained, some changes will be made on the process and the cycle will continue. Especially with globalization, it is observed that social sensitivities are increasing on the world in some issues. States, customers, non-governmental organizations, etc.
Environmental issues global warming, air, water and soil pollution, traffic, etc. Apart from these, it is necessary to take into account the current conditions and factors in international trade economic conjuncture, inter-country trade, political relations, etc. Strategic management process is dynamic and continuous. Changes in any element of the model may require changes to the rest of the model.
For example; the change in the economic conjuncture can lead to a significant opportunity, which can lead to long-term goals and a change in the strategy pursued. Similarly, the failure to meet annual commitments may require a change in the policies applied.
Some businesses start a new strategic management process cycle each year. This does not mean that managers will choose and implement a new strategy each year. In many cases, the implementation of the existing strategies will be resumed, or some changes will be made on them.
Strategic management process implementations are more formalized, especially in large, professionally managed businesses. The formalism here is to clearly define the responsibilities, authorities, duties, and approaches of the people involved in strategic planning.
Smaller enterprises engage less strategically in the strategic management process. Businesses with many business units, product lines, markets, and technology also have a more formal process. Formal strategic planning is most useful when environmental conditions are stable and stable. Strategic success where external environmental conditions are highly variable and less predictable; the flexibility in planning, the ability to learn about new opportunities, and the continuous realization of changes to suit new opportunities.
In such environments, planning systems can still provide very important contributions to the success of the operator, but not in a rigid structure Thompson-Martin, Let's take a closer look at the phases of strategy formulation, strategy implementation and strategy evaluation of the strategic management process that we have briefly discussed.
Stratigraphy involves the creation of vision and mission, the identification of opportunities and threats arising from outside the enterprise, the identification of strengths and weaknesses stemming from within the enterprise, the determination of long-term objectives, the establishment of alternative strategies and the selection of strategies to be followed.
Topics such as which tasks to enter, which jobs to leave, how to distribute resources, how to expand the scope of business, whether to enter international markets, whether to join with another business or not will be discussed. If businesses have limited resources such as raw materials and capital, these resources should be directed to the alternate that benefits the most for the enterprise.
Strategy-building decisions mean that businesses will be tied to specific products, markets, resources and technologies for a long period of time. Strategies also define long-term competitive advantages. Supervisors also have the authority to channel resources to specific areas for the implementation of strategies. In the long run, the intention is longer than a year. Determination of Strategies What is critical after determining the goals we want to achieve in the long term is how to reach these goals.
There can be more than one option to reach a goal. Each of these options has a different superfluous against each other. The important thing is to choose the one that will make the most of the business and to make the most contribution to reach its final goals.
Strategies come into play at this point. Among the most frequently used business strategies are a geographical expansion, product development, market penetration, market development, removal of some of the business assets, exiting certain businesses, creating joint ventures, and so on.
Strategies should be seen as potential actions that are determined by the top management of the business and that make significant contributions from the resources of the business human resources, capital, raw materials, etc. In addition, the strategies will have an impact on the business's future average performance for five years. For this reason, the future is regarded as focussed. Activities such as the development of organizational culture, the formation of an effective organizational structure, the orientation of marketing efforts, the preparation of budgets, the development and use of information systems, and the linkage of employee pricing to the performance of the business are among the steps of strategy implementation.
Strategy implementation is called the action phase of strategic management. Implementing the strategy implies that employees and managers are mobilized to transform the previously selected strategies. Successful implementation of the strategies depends on the ability of the managers to motivate the employees, which is a much more artistic than scientific.
Strategies that are created successfully but can not be put into practice will provide a benefit to the business. Inter-personal relationships are also of particularly critical importance for the success of strategy implementation. The strategy affects all managers and employees in operating implementation activities.
0コメント