UNIT 6. Chapter 37. Strategic implementation Flashcards Preview

Business Studies A2 Levels > UNIT 6. Chapter 37. Strategic implementation > Flashcards

Flashcards in UNIT 6. Chapter 37. Strategic implementation Deck (18)
Loading flashcards...
1

Def. Strategic implementation

The process of allocating and controlling resources to support the chosen strategies.

2

What factors does strategic implementation ensures are in place for implementing major change? (5)

• Appropriate organisational structure
• Adequate resources
• Well motivated staff
• Suitable leadership style
• Control and review systems to monitor the firm's progress

3

Def. Business plan

A written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts.

4

Importance of a business plan (3)

• To obtain finance for start up by persuading potential investors
• For planning and a sense of direction
• For setting targets

5

Def. Corporate plan

This is a methodical plan containing details of the organisation's central objectives and the strategies to be followed to achieve them.

6

Potential benefits and limitations of corporate plans (4 1)

Benefits:
• Clear focus and sense of purpose for senior managers
• Focus is passed down to staff below and become motivational
• To control and review progress against
• The planning process helps the senior managers better understand the business's weakness and strengths
Limitations:
• May become obsolete due to rapid external changes --> plans should be flexible and adaptable

7

Def. Corporate culture

The values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external stakeholder groups.

8

Name and define the 5 main types of corporate culture

• Power culture: Concentrating power just among a few people - associated with autocratic leadership
• Role culture: Each member of staff has a clearly defined job title and role - associated with bureaucratic organisations where people operate with rules and little creativity
• Task culture: Based on co-operation and team work - can have lines of communication similar to matrix organisation
• Person culture: When individuals are given the freedom to express themselves fully and make decisions for themselves
• Entrepreneurial culture: This encourages management and workers to take risks, to come up with new ideas and test out new business ventures.

9

Links between corporate culture and strategic implementation

• Organisation with power culture may implement change by imposing it onto staff, which may cause resentment and resistance. Organisation with task or people culture are more likely to encourage participation in the implementation, which can help to a successful change process.
• Strong culture promotes successful strategy implementation while weak culture doesn't. Strong culture is widespread sharing of common beliefs and practices. In weak cultures, there is not common beliefs or pride in ownership of work.

10

Techniques for implementing, managing and controlling change (I)

• Understand what change means and take control and manage to ensure it is a positive process

11

Def. Change management

Planning, implementing, controlling and reviewing the movement of an organisation from its current state to a new one.

12

Def. Business process re-engineering

Fundamentally rethinking and re-designing the processes of a business to achieve a dramatic improvement in performance.

13

Techniques for implementing, managing and controlling change (II)

• Recognise the major causes of change
e.g.Competitor's actions - new products => Ensure new ideas from staff and ensure resources are available (more examples on pg. 654)

14

What does leading change mean (3)

• Dynamic leaders who can help avoid resistance to change
• Motivating staff at all levels of the organisation so change can be looked at positively
• Visible support at all levels of management

15

Def. Project champion

A person assigned to support and drive a project forward who explains the benefits of change and assists and supports the team putting change into practice

16

Reasons for resistance to strategic change (3)

• Fear of the unknown
• Fear of failure
• Lack of trust between workers and managers

17

Def. Contingency plan
+ key steps (3)

Preparing an organisation's resources for unlikely events
• Identifying the potential disasters that could affect the business
• Assess the likelihood of these occurring
• Minimise the potential impact of crises

18

Benefits and limitations of contingency planning?

Benefits:
• Reassures stakeholders for safety and priority
• Minimises negative impacts
Limitations:
• Costly and time consuming
• Needs to be constantly updated
• Staff training needs to increase