There are several sub-steps to be undertaken in this step. However, the McKinsey approach takes a wider approach, assessing if they are well-aligned with the other factors or not. Implementation of Strategies Implementation is the execution of the necessary strategies to meet the objectives that have been set. Because many are visible to outside observers, most of a company's strategy can be deduced from its actions and public pronouncements. The search for ever better strategy execution is also continuous. Implementation has to be thought of as a process, not an event.
It helps in analyzing the internal and external factors influencing an organization. The issues facing the company should be prioritized by their importance to your success. Success in this stage depends upon employees being given the tools needed to implement the plan and being motivated to make it work. You may even have to repeat the strategic management process from the beginning, including the information and knowledge gained from this first attempt. Long-term objectives prompt managers to now to position the company to perform well over the longer term.
But this is not about taking sides or weighing and making comparisons, especially considering how these two are important stages in Strategic Management. In order to aid the organization on the road towards its goals, the employees must have the skills, competencies and capabilities required in the implementation of strategies. One is a stale strategy. The challenge of trying to close the gap between actual and desired performance pushes an organization to be more inventive, to exhibit some urgency in improving both its financial performance and its business position, and to be more intentional and focused on its actions. First to market can be a key competitive advantage, in part because of the short life span of many fads. As a rule, when alternative have to be made between achieving long-run objectives and achieving short-run objectives, long-run objectives should take the priority. If you determine that the strategy is not moving the company toward its goal, take corrective actions.
Staff Organizations will always have to deal with matters regarding staffing. But all of the approaches include the same basic actions in the same order. Figure 1-3 shows the kinds of actions and approaches that reflect a company's overall strategy. Usually, organizations may take a look at each of these key success factors for individual analysis. Reinforcing these strategies is also a part of strategy implementation. All too often, the owners, managers and supervisors become too caught up in the day-to-day operations of the business, they rarely refer to the strategic plan. How boldly managers embrace new strategic opportunities, how much they emphasize out-innovating the competition, and how often they lead actions to improve organizational performance are good standard of their entrepreneurial spirit.
In some cases, it may also require additional training for current staff members, or even hiring new employees with the required skills and competencies. The key is to keep it small and be successful, then build on that success for the next initiative. Strategy Evaluation for future modification due to change in internal and external factors. Define the indicators for measuring the performance of every employee, of every unit or section, of every division, and of every department. What could have gone wrong? The stronger the fits, the better the execution of strategy. Each stage based upon set of activities performed by the individual working in the organization.
Performance measurements determined by the nature of the goal will help determine if key milestones are being met. A manufacturing manager exercises strategic entrepreneurship in deciding, as part of a companywide emphasis on greater cost competitiveness, to source an important component from a lower-priced South Korean supplier instead of making it in-house. Strategies determine long-term competitive advantages. In addition, the commitment of the people is also something that must be secured by management. E-commerce strategies rely on the power of the Internet, both in the growing popularity of online purchasing and in shaping marketing strategies.
Amazon clearly dominates e-commerce with a whopping 33 percent of all online purchases. In fact the strategic thought is translated into action in strategic management. Managers desperately need to know when particular strategies are not working well; strategy evaluation is the primary means for obtaining this information. No matter how overwhelming the strategic plan may be, it can still be understood and accepted by the workforce if communicated properly. Rarely does a company prosper from repeated management actions that sacrifice better long-run performance for better short-term performance. It is the duty of the managers to have sufficient know-how about the problems and improper working of strategies. However, if done right, it will ensure the achievement of objectives, and the success of the organization.
It must indicate a direction that leads to the attainment of objectives. E-commerce is a more limited term than e-business. Prioritize the tactics most important to achieving the objectives. Many companies have mission statements that explain why they are in business, what their products are and the consumer market they target. The strategy is to produce or purchase comparable value goods or services at a lower cost than its competitors. Rather, outside considerations end up being compromised to harmonize internal considerations.