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Essential of Strategy

ImplementationBy: Emilee Ann Tingala

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Production/Operations

Concernswhen Implementing Strategies

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Type ofOrganizations

Strategy BeingImplemented

Production SystemAdjustments

Hospital Adding a cancer center

(Product Development)

Purchase specialized

equipment and addspecialized people

Bank Adding 10 newbranches (MarketDev’t) 

Perform site locationanalysis

Beer brewery Purchasing a barleyfarm operation(Backward Integration)

Revise inventory controlsystem

Computer

company

Purchasing a retail

distibution chain(forward integration)

Alter shipping,

packaging andtransportation systems

SteelManufacturer

Acquiring a fast-foodchain (unrelated

diversification)

Improve the qualitycontrol system

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Production/OperationsConcernswhen Implementing Strategies

Just-in-Time (JIT)

Parts and materials are deliveredto a production site just as they areneeded

Reduces the costs of implementingstrategies

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Factors to be studied beforelocating production facilities:

Availability of major resources

Prevailing wage rates in thearea

Transportation costs

Location of major markets

Political risks in the area Availability of trainable

employees

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Cross-training of employees

Employees gain a betterunderstanding of the wholebusiness

They can contribute better ideasin planning sessions

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Problems with cross-trainingemployees:

1. It can thrust managers intoroles that emphasizecounseling and coaching over

directing and enforcing

2. It can necessitate substantialinvestments in training andincentives

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3. It can be very time-consuming

4. Skilled workers may resentunskilled workers who learntheir jobs

5. Older employees may not wantto learn new skills

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Human ResourceConcernswhen Implementing Strategies

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Strategic responsibilities of aHuman Resource Manager:

Assessing the staffing needsand costs for alternativestrategies

Developing a staffing plan foreffectively implementingstrategies

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Developing performanceincentives that clearly linkperformance and pay tostrategies

Linking company and personal

benefits

Establishing and administeringan employee stock ownership

plan (ESOP)

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Instituting an effective child-care

policy Providing leadership for

managers and employees in away that allows them to balancework and family

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Causes of problems that arisewhen implementing strategies:

1. Disruption of social andpolitical structures

2. Failure to match individuals’aptitudes with implementationtasks

3. Inadequate top managementsupport for implementationactivities

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Employee StockOwnership Plans

(ESOPs)

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Employee Stock OwnershipPlans (ESOPs)

A tax-qualified, defined-contribution,employee-benefit plan

Whereby employees purchase stock

of the company through borrowedmoney or cash contributions

Empower employees to work asowners

Used as a tactic for preventing ahostile takeover 

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Balancing Work Life andHome Life

HR managers need to foster amore effective balancing ofprofessional and private lives

A good home life contributes to agood work life

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Actions in response towork/family issues:

Providing spouse relocationassistance as an employee benefit

Providing company resources for

family recreational andeducational use

Establishing employee country

clubs Creating family/work interaction

opportunities

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Actions in response towork/family issues:

Developing family days

Family is invited in the workplace

Inexpensive

Increase employees’ pride in

working

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Other issues in work life andhome life

Glass ceiling

the invisible barrier that barswomen and minorities from the top

level management positions

Extramarital affairs

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Diverse Workforce

Diversification A basic growth strategy that implements

the expansion of product lines or

expanding into another industry.

An organization can be most effective when

a workforce mirrors the diversity of itscustomers.

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Benefits of a DiverseWorkforce

1. Improves corporate culture

2. Improves employee morale

3. Leads to a higher retention ofemployees

4. Leads to an easier recruitment

of new employees5. Decreases complaints and

litigation

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6. Increases creativity

7. Decreases interpersonal

conflict between employees8. Enables the organization to

move into emerging markets

9. Improves client relations10. Increases productivity

11. Improves the bottom line

12. Maximizes brand identity13. Reduces training costs