Both Strategy Formulation And Strategy Implementation Are Aspects Of Significant Problems Encountered in Implementing a New Strategy in a Business

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Significant Problems Encountered in Implementing a New Strategy in a Business

”Strategy is defined as the determination of the basic long-term goals and objectives of the business, and the adoption of courses of action and the allocation of resources necessary to achieve those goals” Chandler(1962)

Creativity is a process and can be considered in less than three stages. These are: strategic analysis; this is the stage where through analysis the expert identifies opportunities for threats, strengths and weaknesses in the environment; The strategy formulation stage, where choices are made and the strategy implementation stage is the stage where the plan is translated into action.

Strategy implementation or strategy implementation is defined as “the translation of strategy into organizational action through organizational planning and design, resource planning and strategic change management”.

Analyzing the statement, it is clear that the implementation of the plan is difficult. Therefore, the successful implementation of the strategy will depend on how the various components of its implementation are successfully integrated and work together.

To identify the important problems encountered in the implementation of a new strategy in the business, a critical look at the components that will be used in the implementation of the strategy will be a good indicator. These are considered below: Department structure and design; and implementation of the plan; Translating strategy into organizational action through organizational structure will depend on the type of structure used in the organization. This is because the needs of a multinational corporation are different from those of a small business. It is possible that the extent of service provision or centralization may influence the implementation of the plan.

For example using a matrix structure that often takes the form of production and geographic division or functional division and functional division respectively; the time it takes to make decisions can be much longer than conventional structures. The organizational structure and design aspect of strategy implementation deals with how employees are recruited and organized to deliver the business strategy. One of the most important problems encountered with the use of organizational issues in the implementation of the plan is that many employees may leave the firm if they feel that they are being ‘used’ if they are not motivated. This is especially true where the CEO or senior management imposes the plan on employees.

Another problem encountered here is the method and method of information transfer or promotion of ranks. If there is a barrier that prevents the flow of information systems it means that decisions will be made based on outdated or outdated information. This can be solved by providing a central command for the easy flow of information between all positions and files especially in implementing a new strategy in the business. Organizational structure and design must be taken into account where operational and strategic decisions are made, there must be balance if implementing a new strategy is to be successful in any business.

The next aspect in the implementation of the plan – resource planning lays out the resources and capabilities that need to be designed. It deals with the identification of needed resources and how those resources will be used and managed to create the skills needed to successfully implement plans. This resource allocation depends on: the protection of exclusive resources ie where the strategy depends on the exclusivity of a certain resource such as a patent; and must be protected; by legal means; integrating resources, (combining resources to create efficiency) business process innovation (creating dynamic improvements in performance) and using learning experiences and continuous improvement to improve efficiency.

One of the major problems of strategic implementation as a result of resource planning is the failure to translate strategic goal statements, such as gaining market share into important factors that will enable the goal to be achieved and finally achieved. This analysis of key achievements can be followed as a starting point for resource planning. For example a firm timetable may be needed for an organization trying to introduce, say a new product for Christmas. A clear study of the period must be made if the product and its marketing are to be successful; as well as the allocation of funds for this action. The problem here is that because of the different times required for different tasks, it is difficult to know where to start.

Scholes et Johnson (1999) write that the cycle of problems is common in the development of an operational plan, and it raises the question of where to start – with the market forecast, the current level of money, the constraint of the level of production, or What? The answer is that it may not matter much where it is started, since the plan will have to be reworked and adjusted many times. A helpful guide is to approach the problem in a way that appears to be the greatest point of change. An organization planning new growth strategies can begin by assessing market opportunities. A person starting a new business can start with a real test of how much capital they have.

Critical path analysis is recommended for plans with a clear implementation plan. Another proposed problem is the conflict that has arisen between departments regarding the allocation of funds, especially where funds are involved in the implementation of the new plan.

The next part of the strategy implementation phase is strategic change management. It is generally accepted that strategic change builds on four basic areas:

1. There is a clear vision within the organization of the plan to be followed.

2. Change will not happen unless there is a commitment to change

3. How to manage systematic change is likely to depend on the situation.

4. The change must face the powerful influence of the paradigm and the web of culture, the plan followed by the organization.

There are two types of change – incremental change – which builds on the skills, routines and beliefs of those in the organization, so that the change can be effective and achieve their commitment, and transformational – which requires the organization to change its perspective. over time. It may be a change in routine (“the way things are done here”). that they have not changed.

To achieve successful strategy implementation, managers must adopt appropriate methods for managing change processes. For example, there is a problem in managing change based on wrong information, or a lack of knowledge, education and communication style will be used. This includes an explanation of the reasons and methods for planned change. Collaboration or participation involving those who will be affected by the strategic change in identifying strategic issues; intervention methods, direction and enforcement styles.

Associated with strategic change management is the problem of change management. It becomes very difficult to manage the changes that come as a result of implementation. For example, some managers will lose their positions due to changes (delays), others may be made redundant due to promotions and others may lose their employment positions or positions that they loved very much due to the business restructuring process. . This will demotivate the workforce and the organization may lose qualified employees. Others may need to be retrained to take on new positions or demoted if they are to remain in the organization. This type of problem can be avoided if managers adopt a participative leadership style and involve employees from the formulation to the implementation stages of the plan.

In conclusion, it may be useful to explain that as there are many definitions of the plan, the style of its implementation may vary and therefore there may be problems and solutions. However, since the implementation involves the management of the behavior of others and sometimes the views and culture, many problems will be related to people and perhaps the possible solutions will depend on the style of management and the behavior of the leaders regarding the structure and the availability and allocation of resources.

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