Comparison between Strategy Formulation and Strategy Implementation - Essay Example

Strategic Management Name Institution Date Comparison between Strategy formulation and strategy implementation Both strategy formulation and strategy implementation had been classified as either an art or science due to the nature they are being carried upon. The main comparison is that strategic formulation precedes strategic implementation. All processes to be carried out begin from strategic formulation and after it developments it goes to the other phase which is the strategy implementation. In short, strategy formulation entails coming up with the forces before the action as to strategy implementation it is all about managing the forces during the action. Also strategy formulation focus mainly on doing right things that will lead to effectiveness while in strategic implementation the process focuses mainly in doing things in the right way to bring efficiency. In order to meet the objectives of strategic formulation, the process requires few individuals to co-ordinate together as opposed to the process of strategic implementation where to be successful it needs co-ordination among large number of individuals. Therefore all these differences reveal how strategic formulation and strategic implementation are varying in either science or an art. Relationship between annual objectives and policies Annual objectives are participated activities that high ranked organizational members are engaged in while policies refers to specific procedures or guidelines, rules and any other management consideration that were established to encourage and support activities in the organization aiming at achieving goals. The relationship between annual objectives and policies is that they are both as a mechanism to ensure work is carried out properly and with accordance to the guidelines and regulations stipulated to meet the organizational goals. Another relationship that exists between annually objectives and policies is that they are part and parcel of strategy implementation product. Annual objectives are short term while long term objectives will be as a result of strategic formulation. Therefore the implementation of both annual objectives and policies in an organization had already put in place the compatibility of managers and employees to work out with both policies and annual objectives established to realize the goal of the business hence there exists a relationship between the two components. Identifying a long-term objective and two supporting annual objectives for a familiar organization In a stock exchange company, there long term objective of their business practice is to improve returns to shareholders by an increment of 10% over the years. This will be made available through a reduction method facilitated through the cost of production. In this objective the organization intends to intensify its services so that it can gain a lot of returns in the level of investment which in turn will be used to pay its shareholders an increased percentage on dividends. In the other hand the company has also employed the use of annual objectives to supplement in realizing the major goal of the company. These annual objectives include organizational recognition and visibility and increase partnership and alliances. Organizational recognition and visibility is one of the annual objectives the company has employed and will be achieved by engaging individuals who will take action in encouraging and support of a position or an issue. Increase in partnership and alliance objective will ensure there is increment in investment for hence the company will work towards it. Identifying and discussing three policies that applies to my business policy class Some of the policies that can be applied to my business plan class include a policy that states, “All employees should deal with customers without any discrimination. No matter what is your position in the organization, every employee should impact the customer in a polite and positive way”. This is a policy that reminds each employee in the organization to follow the guideline policy and create a good relationship with the customers seeking services. Another policy is that, “Honesty: we will not be saying anything that is false which will deliberately misleading other persons”. Employees are supposed to practice candid, be open and freely in sharing out information that is true. Any false information will render the business process at a stake. There it is a guideline that ensures employees are straightened to follow the right path in revealing out un-falsified information to customers. Lastly, the other policy is that, “New hires are shall be subjected to a three month probation period during which employment will be at will”. This policy gives a statutory order for the new employ to follow the organizational regulations or else there contract will be terminated. All these three policies apply to the implementation of a business policy class. Reasons why conflict may occur during objective-setting activities It is too evident that the setting of objective activities may bring up conflicts. The main reason as to why objective setting activities results in conflicts is due to disagreement among members. The members cannot agree on a specific objective that will be applicable to the organization in conducting out activities. These conflicts will hugely contribute to exhausting and destructive. They create tension and an unhappy working environment since members who have disagreed on implementing or setting out objective activities cannot work together thus rendering organizational goals at stake. Another reason that brings out conflict while setting out objectives is the different perception of ideas and self enmity among the members. Different perception of ideas may be encountered while setting these objectives hence both members will not agree on thus a conflict will erupt also enmity between the members can result to conflict while in objective setting objectives. Segmenting a battery operating lawn mower market In this type of market, there need to be three types of market segmentation basing that the firm operates a production of battery lawn mower. The market segmentation will be as follows:- demographic segmentation and psycho-demographic segmentation. In part of the demographic segmentation, there is need to understand the consumers for the battery operated lawn mowers through identifying and understanding their needs which it will better for a creation of a fully market venture. This entails creation of a database with adequate information about age, social class, gender, race and income which is part of market segmentation. In psycho-demographic segmentation, it describes who will be buying the battery operated lawn mowers. Through this market segmentation the market for selling lawn mowers will be classified based on lifestyle and personality option. Therefore in searching for a market I will definitely employ the two market segmentation for the battery operated lawn mowers: demographic and psycho-demographic segmentation. Product-positioning map In McDonald’s product positioning, there exists a corporate strategy that goes in line with the expected returns in the business. The soft drinks have been ranged according to their value they fetch in the market. The drinks have been classified into four categories under which there exist sub-categories according to the McDonalds product-positioning map below. In Wendy’s product positioning, she has established campaign with a slogan that says, “You know when it is real”. This is a slogan that shows how the Wendy’s humbuggers are real up to the level of being made. This slogan is part of the Wendy’s plan in touting freshness of a hamburger brand. Burger King is another food restaurant chain that uses product poisoning map to offer services and products. This restaurant has positioned itself in a traditional way to compete effectively by offering cheap services and products such as sausages. Despite facing challenges in branding the commercials and the use of product positioning in the restaurant contributes a lot in the success of the fast food restaurant. A diagram of a products positioning Taco bell product positioning has completely changed the services and product offering in the fast food restaurant. The use of social media facilitated the growth of Taco bell sale through hitting on trends and innovating products. Product positioning ensured the restaurant prices its products on a scale. Hardees and KFC launched a marketing campaign in provision of a distinctive product that whose price level were set through the use of product positioning map structure. It defined how high and low priced products are rated on a scale using the product positioning map in the fast food restaurants. How marketing, finance and accounting, R&D, and MIS managers’ involvement in strategy formulation can enhance strategy implementation Strategy implementation has been said to have an influence on the livelihood each and every member n the organization. Merging all members in the organization including the marketing, research and development, finance and accounting department personnel’s and MIS managers for strategy formulation will provide an effective way out in the implementation of the strategies. In strategy formulation, there are number of issues that arise hence it requires specific professional in that area to offer advice on contrasting issues. Finance and accountants assist in answering and analyzing the financial statements the organization can use when implementing strategies while research and development ascertain the decisions in the formulation of strategy. Marketing department is given the role to implement strategies that are concerning sales increase as to MIS is to evaluate information to effective gain a competitive advantage. Therefore it is important for all departments to be involved in the strategy formulation so as to enhance strategy implementation. Describing some marketing, finance and accounting, R&D, and MIS activities that a small restaurant chain undertake to expand into a neighboring state Small restaurant chains have to adopt some of the activities being practiced in the different professional departments so as to expand and grow. Engaging on research is one of the activity it should be employed. In research, one can study the community and gain knowledge on what types of services and products the neighbors’ will be willing to accept. Calculation of the risks to venture in neighboring state will be another activity to be learnt from finance and accounting practices. MIS practices should allow training and leadership qualities to be engaged while venturing restaurant chain businesses in the neighboring state. All these activities can be learned from the practices of marketing, finance and accounting, management information systems and research and development in order to venture business into neighboring state. Steps in developing projected financial statements In order to prepare projected financial statements, the first step is to start forecasting on the sales. In this category you start by enumerating all units with relevance prices. You should never be caught forecasting on a market by only assuming the total market size to project market share. The next step is forecasting on running expenses which are part of the financial profiles that is gained by taking sales then subtracted with direct costs which u will end up with a gross margin. These two steps are essential in the calculation and development of projected financial statements in organization. The first one is to forecast on sale and the second step is to forecast on running expenses. After calculation there will be fully projected financial statements. Read More