STRATEGIC
IMPLEMENTATIO
N
MODELS OF STRATEGY
MAKING
Henry Mintzberg – Entrepreneurial model, Adaptive Model, Planning Model
Logical Incrementalism - James B Quinn
ENTREPRENEURIAL MODEL -
PRACTO
In this model the strategy is devised by independent and thoughtful
decision maker.
Focus being relevantly on new opportunities and less on problems faced.
Long term strategies (growth) implemented to achieve the vision and
mission
ADAPTIVE MODEL – MAMA
EARTH
Strategy implemented to stabalise the company ahead in an incremental
manner focusing on existing problems and less focus on new
opportunities.
Strategic decisions are more reactive than proactive
The time frame of strategies for this model are short term rather than long
term.
Changes made to adapt in the changes in the market
PLANNING MODEL - VEEBHA
Decisions to be converted into plans to solve the existing problem and
enter into new opportunities.
Proactive search for new opportunities and reactive search to solve existing
problems.
LOGICAL
INCREMENTALISATION –
TANISHQ
Approach where companies make decisions through small, manageable
steps rather than comprehensive plans.
This helps the businesses to respond and adapt to changes more swiftly
and efficiently by integrating learning and strategy development process.
Fast paced and uncertain environment
STRATEGIC ANALYSIS
Strategic analysis is the process of examining an organization’s internal
and external environments to inform strategic decision-making and
improve its overall performance. It involves assessing various factors that
can impact the organization’s ability to achieve its goals and sustain
competitive advantage. The aim of strategic analysis is to identify
strengths, weaknesses, opportunities, and threats (often through tools like
SWOT analysis) and to develop strategies that leverage strengths and
opportunities while addressing weaknesses and threats.
TOOLS AND TECHNIQUES –
STRATEGIC ANALYSIS
SWOT Analysis
An effective organizational strategy is said to be one that capatalises on the
opportunities through use of strengths and neutralizes the threats by
minimizing the impact of weaknesses to achieve pre- determined objectives.
CORPORATE PORTFOLIO ANALYSIS
Set of techniques that help strategists in taking strategic decisions with
regard to individual products or businesses in a firms portfolio
Primarily used for multi-product and multi-business firm.
Advantage – eg. A diversified company may divert its resources from its cash
rich business to more prospective ones.
TYPES OF CPA
BCG Matrix – Boston Consulting Group provides a graphic representation for an organization to
examine the different businesses in its portfolio on the basis of their relative market shares and
industry growth rates.
Founded by Bruce Henderson
Also known as Growth – share matrix
GE Nine –cell matrix
Industry attractiveness indicating market size and growth rate, industry profit margin, economies
of scale, human impact
Business strength/competitive position – relative market share, profit margins, ability to compete
on competitive advantage, knowledge of customer and market, technological capability.
The nine cells are grouped into low to high industry attractiveness and weak to strong business
strength.’
GE Matrix is also known as stoplight strategy matrix.
Three zones of three cells each are made denoting combinations of green,
yellow and red colours.
Based on the green zone – go ahead – to grow and build – indicating
expansion strategy – businesses in green zone attract major investment
Yellow zone – Wait and see- Hold and maintain strategies- stability and
consolidation
Red Zone – stop – Retrenchment strategies
TOOLS AND TECHNIQUES –
STRATEGIC ANALYSIS
Experience curve analysis
The experience curve is akin to a learning curve which explains the
efficiency increases gained by workers through repetitive productive work.
Experience curve is based on the commonly observed phenomenon that
unit cost declines as a firm accumulates experience in terms of cumulative
volume of production
It indicates that larger firms in the industry tend to have a lower unit cost
as compared to smaller startups – having a cost advantage.
With lower costs, pricing can be done competitively – indicating a
competitive advantage and increasing profits
Product redesigning and tech advancements – to improve quality of
products
Life Cycle Analysis
Products, markets, businesses and industries evolve through sequential
stages of introduction, growth, maturity and decline
Important to know which stage each product exists in the product portfolio
Depending on the analysis appropriate decisions can be taken.
Expansion will be feasible alternative for products in introductory and
growth stage
Maturity – stability or innovations in product to continue the growth
Decline – Retrenchment
Competitor Analysis
Focus on identifying SWOT within the competitive industry
Flipkart and Infibeam
7S Framework
Mckinsey and company – Robert Waterman and Tom Peters
Strategy – Plans and actions to be implemented
Structure – Structural relations among different components of an organization
Systems – Procedures followerd
Skills – Core competencies of the employees required to work within the
organization
Staff – Number of employees and competent to create a competitive
advantage
Style – Management styles or behavioural patterns of an organization
Shared Values – Policies and ethical practices, culture followed
Porter’s Five forces model
THREAT OF NEW ENTRANTS
THREAT OF COMPETITORS
BARGAINING POWER OF SUPPLIERS
BARGAINING POWER OF CUSTOMERS
THREAT OF SUBSTITUTES
STRATEGY AND PROJECT
IMPLEMENTATION
Activities and choices to required to execute the action plan.
Steps – Initiation and communication of strategy
Formulation of plans to implement the strategy
Analysing the skill set and staff required to implement
Training and development
Resources to be arranged for implementation
Procedures to be followed – Licensing, Working under the Acts set by the
government
Review
PROCEDURAL
IMPLEMENTATION
In India, companies are required to follow a range of procedural rules to ensure compliance with
legal, regulatory, and operational standards.
1. Incorporation and Registration
• Companies Act, 2013: Companies must be incorporated under the Companies Act, 2013, which
provides the legal framework for their formation, management, and dissolution.
• Name Reservation: Obtain approval for the company name from the Ministry of Corporate
Affairs (MCA).
• Certificate of Incorporation: File the necessary documents (e.g., Memorandum of Association,
Articles of Association) with the Registrar of Companies (RoC) and receive the Certificate of
Incorporation.
2. Financial Reporting
• Accounting Records: Maintain accurate books of accounts and financial statements as per the
accounting standards and practices.
• Audits: Appoint an external auditor and conduct annual audits. The auditor’s report must be
submitted along with the financial statements to the RoC.
Taxation
• Income Tax Returns: File income tax returns annually with the Income
Tax Department.
• Goods and Services Tax (GST): If applicable, comply with GST
registration, filing of GST returns, and payment of GST.
Employee Compliance
Labour Laws: Follow provisions related to working conditions, wages, and
worker safety as per labor laws.
Data Protection and Privacy
• Personal Data Protection: Adhere to data protection laws and
regulations, including those related to the handling and processing of
personal data.
Corporate Social Responsibility (CSR)
Foreign collaborations
Pollution Control Requirements
BEHAVIOURAL
IMPLEMENTATION
Leadership is a multifaceted concept that involves guiding, inspiring, and influencing others to achieve common
goals. Effective leadership can significantly impact an organization's success, team dynamics, and overall culture.
. Vision and Strategy
• Vision: Effective leaders articulate a clear vision for the future, providing direction and purpose. This vision helps
to align the team’s efforts and motivates them toward common goals.
• Strategic Planning: Leaders develop and implement strategies to achieve their vision. This involves setting
goals, identifying resources, and creating actionable plans.
Communication
• Clarity: Good leaders communicate their ideas and expectations clearly. They ensure that their message is
understood by all team members.
• Listening: Effective communication also involves listening to others’ ideas, concerns, and feedback. This helps in
building trust and making informed decisions.
Decision-Making
• Critical Thinking: Leaders need to make informed and timely decisions. This involves analyzing information,
weighing pros and cons, and considering potential outcomes.
• Accountability: Good leaders take responsibility for their decisions and their outcomes, whether positive or
negative.
Emotional Intelligence
• Self-Awareness: Leaders are aware of their own emotions and how they affect their behavior and
decision-making.
• Empathy: Understanding and addressing the emotions and needs of others is crucial for building
strong relationships and a supportive team environment.
Team Building and Development
• Motivation: Leaders inspire and motivate their team members, recognizing their strengths and
providing support and encouragement.
• Delegation: Effective leaders delegate tasks appropriately, empowering team members and
fostering their growth and development.
Adaptability and Innovation
• Flexibility: Leaders need to adapt to changing circumstances and challenges. This might involve
revising strategies, adopting new approaches, or managing crises.
• Encouraging Innovation: Fostering a culture of innovation and creativity helps in staying
competitive and finding new solutions to problems.
Integrity and Ethics
• Honesty: Leaders should model ethical behavior and honesty, setting a standard for others to
follow.
• Fairness: Treating everyone with fairness and respect helps in building a positive and trust-
based work environment.
Conflict Resolution
• Mediation: Leaders address and resolve conflicts constructively, ensuring that all parties are
heard and that solutions are fair.
• Problem-Solving: Effective conflict resolution involves identifying the root causes of conflicts
and finding solutions that satisfy all parties involved..
Performance Management
• Setting Expectations: Leaders set clear performance expectations and goals for their team.
• Feedback and Improvement: Providing constructive feedback and supporting continuous
improvement are essential for team development and success.
LEADERSHIP STYLES
Leadership styles refer to the different approaches leaders use to manage, guide, and inspire
their teams. Each style has its own strengths and weaknesses, and the effectiveness of a
particular style can vary depending on the context, team dynamics, and organizational goals.
1. Autocratic Leadership
• Characteristics: Leaders make decisions unilaterally and expect subordinates to comply
without input.
• Pros: Can lead to quick decision-making and clear direction.
• Cons: Can stifle creativity and reduce employee motivation and morale.
2. Democratic Leadership
• Characteristics: Leaders involve team members in the decision-making process, encouraging
participation and input.
• Pros: Enhances team collaboration, increases job satisfaction, and can lead to more innovative
solutions.
• Cons: Decision-making can be slower and may lead to conflicts if not managed well.
Laissez-Faire Leadership
• Characteristics: Leaders take a hands-off approach, allowing team members to
make decisions and manage their own work.
• Pros: Promotes autonomy and can be effective with highly skilled and motivated
teams.
• Cons: May lead to lack of direction and accountability if not managed properly.
Bureaucratic Leadership
• Characteristics: Leaders strictly adhere to rules, policies, and procedures,
emphasizing structure and compliance.
• Pros: Ensures consistency and adherence to regulations, useful in highly
regulated environments.
• Cons: Can be inflexible and may inhibit creativity and adaptability.
Situational Leadership
• Characteristics: Leaders adapt their style based on the situation and the
needs of their team members, varying their approach as required.
• Pros: Flexibility to handle diverse situations and team needs, enhances
effectiveness in different contexts.
• Cons: Requires leaders to be highly adaptable and perceptive, which can
be challenging.
STRUCTURAL
IMPLEMENTATION
Organizational Structure
• Hierarchical Structure: Establishing a clear chain of command and
reporting relationships. This could be a traditional pyramid structure with
clear levels of authority and specialized roles.
• Flat Structure: Reducing the levels of management to create a more
egalitarian environment that can encourage faster decision-making and
more employee involvement.
• Matrix Structure: Combining functional and divisional structures to
facilitate better coordination across different functions and projects.
Roles and Responsibilities
• Job Descriptions: Clearly defining the roles, responsibilities, and expectations for each position
within the organization.
• Role Clarity: Ensuring that employees understand their own roles as well as how they fit into the
larger organizational framework.
• Performance Metrics: Establishing criteria and metrics to evaluate employee performance and
align it with business objectives.
Processes and Procedures
• Standard Operating Procedures (SOPs): Documenting the standard methods for carrying out
various tasks and processes to ensure consistency and efficiency.
• Workflow Design: Mapping out the workflows and interactions between different departments
or teams to optimize processes and eliminate bottlenecks.
• Communication Protocols: Setting up systems and procedures for internal and external
communication to ensure timely and accurate information flow.
Technology and Systems
• Information Systems: customer relationship management (CRM) systems, or other
technology solutions that support business operations and decision-making.
• Infrastructure: Establishing the physical and digital infrastructure necessary to
support business operations, such as office spaces, IT networks, and support
systems.
5. Governance and Compliance
• Policies and Procedures: Developing policies to govern various aspects of
business operations, including compliance with legal and regulatory requirements.
• Risk Management: Implementing frameworks for identifying, assessing, and
mitigating risks to the business.
• Audit and Control: Setting up internal controls and auditing processes to ensure
adherence to policies and regulatory requirements.
Change Management
• Transition Planning: Managing the transition to new structures or processes to minimize
disruption and ensure smooth implementation.
• Training and Development: Providing necessary training for employees to adapt to new
systems or roles and ensuring that they are equipped with the skills needed to succeed in
their positions.
• Feedback and Adjustment: Gathering feedback from stakeholders and making
adjustments to the structure or processes as needed to improve effectiveness and address
any issues.
7. Strategic Alignment
• Business Strategy Integration: Aligning the organizational structure with the company’s
strategic goals to ensure that every part of the business is working towards the same
objectives.
• Resource Allocation: Ensuring that resources (financial, human, and material) are
allocated in a way that supports the company’s strategic priorities.
STRATEGIC CHOICE
PROCESS
The strategic choice process is a framework used by organizations to make
decisions that will shape their long-term direction and competitive advantage.
It involves several key steps:
1.Analyse the Environment
2.Set objectives
3.Generate Strategic Alternatives:
4.Evaluate Alternatives:
5.Make the Strategic Choice:
6.Implement the Strategy:
7.Monitor and Review:
8.Adapt and Revise:
https://youtu.be/Nq1W32e-bmo
Zepto