A Strategy Implementation

8/2/2019 A Strategy Implementation

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Prepared By:-

MittaliAmit

Pranav

Abhishek


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Strategic management is far from complete after strategies

have been formulated and a concrete strategies plan has to

been prepared.

Strategists have to put plan into action.

Different aspects of Implementation are defined below

I. Project Implementation which deals with a number of steps starting from

conception to clean up.(plans, programmes, projects)

II. Procedural Implementation which deals with the different aspects of the

regulatory framework that Indian companies have to consider.(legislation,

government policies, administrative orders, procedure for corporate

sectors)

III. The issues involved in Resource Allocation which deals with the

procurement, approaches, means, factors and the difficulties in resource

allocation.


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Interrelationship between Formulation and Implementation

In real life, the formulation and implementation processes are

intertwined.

Two linkages exit between formulation and implementation.

I. Forward linkages deal with the impact of the formulation onimplementation.

II. Backward linkages are concerned with the impact of the

implementation on formulation.


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Forward Linkages

The different elements in strategy formulation determine the

course that an organisation adopts for itself.

With the formulation of new strategies, many changes have to

be effected within the organisation.

The organisational structure has to undergo a change in

requirement of a modified or new strategy.

The style of leadership has to be adapted to the formulation of

strategies.

The strategy formulated provide the direction to

implementation.


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Backward Linkages

Organisations tends to adopt those strategies which can be

implemented with the help of present structure of resources

combined with some additional efforts.

Formulation is a managerial task requiring analysis and

thinking, implementation primarily rests on action and doing.


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Aspects of Strategy Implementation

A Strategist has to bring his or her task a wide range ofknowledge, skills, attitudes and abilities.

The implementation tasks put to test the strategists abilities to

allocate resource, design structure and systems, formulatefunctional policies, take into account the leadership style

required and plan for operational effectiveness.

Strategies do not directly lead to action.

They are activated through implementation.


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Pyramid of strategy Implementation

Strategies

Plans

Programmes

Projects

Budgets

Policies, procedures, rules and regulations


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Strategies lead to plans.

Stability strategies formulation of various plans.

Expansion Strategies various expansion plans.

Diversification strategies new project development plans.

Plans result in programmes which includes

goals,

policies,

procedures,

rules and

steps to be taken for action.


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Programmes leads to formulation of projects. Projects in

specific programmes for which time schedule and cost arepredetermined. It requires allocation of funds based on capital

budgeting by organisation.

Projects create the infrastructure for the day-to-day operationsin the organisation.

Implementation of strategies is not limited to formulation of

plans, programmes and projects.


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There are various activities which are performed only once.

I. Project implementation

II. Procedural implementationIII. Resource allocation

IV. Structural implementation

V. Behavioural implementation

VI. Functional and operational implementation

While dealing with above aspects, we have to cover concepts, methods,

techniques approaches.

The assumption is that a strategy creates its own requirements of the

various aspects of implementation.

If the strategy is modified or replaced, each of the aspects of

implementation have to undergo a change.


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Project : A temporary endeavor undertaken to achieve aparticular aim and to which project management can be applied,

regardless of the size, budget or timeline for the project. (E.g.

factory expansion, machines installation, product development,

business process outsourcing, software development, etc.)

Project by management institute of US- a one-shot, time-

limited, goal-directed, major undertaking, requiring the

commitment of varied skill and resources.


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Project Management: Application of knowledge,

skills, tools and techniques to a broad range ofactivities in order to meet requirements of a particular

project.

The goals and objectives are derived from the plans

and programmes which are based on the strategies

adopted.


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1. Conception phase:- It is an extension of the strategy

formulation phase. Ideas generated during the process ofstrategic alternative and choice consideration from the coreof the future projects that may be undertaken by theorganisation.

2. Definition phase:- Identified and arranged projects havebeen analysed which examines the marketing, technical,financial, economic and ecological aspects to find outfinancial situation, banks and investment. After this, the

feasibility studies conducted which are done for in-depth,detailed project analysis and result in an adequatelyformulated project.


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After the definition phase, the project is cleared for

implementation. But before being implemented, the projecthas been further planned.

3. Planning and organising phase:- Detailed planning related to

infrastructure, engineering designs, schedules and budgets,finance has been determined. A project structure which would

deal with the organisation and manpower, systems and

procedures has also to be created for implement the project.


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4. Implementation phase:- The detailed engineering, order

placement for equipments and material for contract, civil andother construction have to be undertaken during this phase

leading to the testing, trial and commissioning of the plant.

5. Clean-up phase:- This phase deals with disbanding the projectinfrastructure and handing over the plan to the operating

personnel.


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Organization must be aware of procedural framework within which plans,programmes, and projects have to be approved by the Government at

Central, state and local levels.

Apex level committee like Cabinet Committee on Economic Affairs.

Regulatory agencies such as Central Electricity Regulatory Commission

(CERC ), Telecom Regulatory Authority of India ( TRAI ), Insurance

Regulatory Development Authority ( IRDA ).

State level- Director of Industries

Government policies, laws, rules, regulations, procedures constantly keep

changing hence recourse of special advice from chartered accountants,

company secretaries, industry experts & consultants will be needed


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REGULATORY ELEMENTS:

1) Formation of a company

2) Licensing procedures

3) Securities and Exchange Board of India (SEBI) requirements

4) Monopolies and restrictive Trade Practices (MRTP ) requirements

5) Foreign collaboration procedures

6) Foreign Exchange Management Act (FEMA) requirements

7) Imports and Exports requirements

8) Patenting and Trademarks requirements

9) Labour legislation requirements

10) Environmental protection and pollution control requirements

11) Consumer protection requirements

12) Incentives and facilities benefits


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1. Formation of a Company:

According to the Companies Act 1956, it consists of :

Promotion : preliminary steps for the purpose of Registration

and Floatation

Registration : MOA , AOA and agreements with Registrar of

Companies who issues certificate of incorporation

Floatation : raising of capital to commence business .


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2. Licensing Procedures:

The system of planning depends on 3 policy documents:

Industrial policy resolution:

a) Industries directly under Government

b) Industries promoted by Government where private

sector supplements the efforts.c) Private sector


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Industries ( Development and Regulation ) Act ( IDRA)

Licensing system for the development & regulation of

scheduled industries ( Foreign collaboration, Certain capital

goods import )

Sec (30) of IDRA deals with the Registration & Licensing of

industrial undertaking rules.

Industrial license abolished except for few like Security,

defense, environmental concern and certain items of

conspicuous consumption.

Authority- Secretariat of industrial assistance ( SIA )

Statements of 1978, 1980, 1982 and 1991- Industries left

to private sector


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The SEBI Act 1992, replaced with the Capital Issues Control Act,1956

Since 1992, SEBI is a statutory body , a quasi judicial body, underSecurities Law Ordinance 1995.

3 main Objectives of SEBI :-

1. Protect the interests of investors in securities2. Promote development of securities market

3. Regulate securities market


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Deals with- Issue of capital, transfer of shares and other significantaspects of Indian Capital Market.

Jurisdiction of SEBI :-

Primary market

Secondary market

Mutual Fund, FII

Foreign brokers

For purpose of strategy implementation :

- provision of financial resources

- mergers and amalgamations as they regulate capital reorganization plansfor mergers.


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Purpose : To prevent MRTP and concentration of Economic Power.

Now : Mainly- Prevention of monopolistic, restrictive and unfair trade

practices

MRTP Act is implemented by MRTP Commission.


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Restrictive trade practices-

Collusion or cartel formation by companies

Price discrimination among different group of customers

Predatory pricing of selling below cost to beat competition

Tie-up of slow moving with fast moving products

Purchase of whole range of products

Exclusive Selling of a particular product of brand

Area restrictions

Fixation of resale prices


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Comprehensive Competition law ( CCI ) to replace

MRTP Act

Purpose of fostering fair competition among Indian Industry.

It will look after any practices curbing competition, as per WTO

norms

Under it a Competition Commission is to be setup to investigate in

mergers and acquisitions where total assets of the acquiring &

acquired companies and turnover is in excess of prescribed limits.

The commission shall be empowered to direct enterprises todiscontinue certain practices, levy a fine & recommend on such

related aspects.


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Many strategic alternatives like expansion / diversification in

high technology industries call for foreign collaboration and

investment and require prior Govt. approval.

Regulatory framework deals with need for foreign technology,

Royalty payments, Terms and conditions of collaboration

agreement and foreign investment


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Two types of Foreign Investments:

FDI (Foreign Direct Investment)invest through

wholly owned subsidiary,

Joint Venture

or acquisition

FII or Portfolio investment:

Investment by FII and investments in instruments such as Globaldepository receipts ( GDRs ), Foreign Currency convertible bonds (FCCB )

JV an important route for channelizing foreign investment into and outsideIndia

Major Regulatory authorities are :-

The RBI

Foreign investment promotion board ( FIPB ) and

Project approval board


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FEMA replaces FERA in June 2000.

Substantially liberalized rules regarding :

Dollar accounts by exporters,

Remittance of foreign exchange for visits abroad,

Agency commission,

Export claims,

Reduction in export value,

Reimbursement expenses incurred on dishonored export bills,

Consular fee, etc

The opening, holding, and maintaining of foreign currency accounts

is governed by the Foreign Exchange Management Regulations,

2000.


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7. Import and Export Requirements

Strategy implementation in areas, such as diversification andinternationalization, requires the consideration of import and export

requirements

The central government has the powers to prohibit, restrict,

regulate, exempt or promote international trade that constitutesimports and exports

The EXIM policy enunciates the foreign trade policy of the country

The policy implementation and the legal framework for imports andexports in India are largely based on the Foreign Trade

Development and Regulation Act


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8. Patenting and Trademarks Requirements

Patents, Trademarks, copyrights, designs etc are

assuming greater significance in the Indian industry

owning to international environmental changes

The increasing competition in the business

environment has meant that it has become necessary

to know the rights and privileges in relation to and

the legal procedures for protecting products and ideas


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9. Labour Legislation Requirements

An essential part of procedural implementation in any

project as well as in a going concern is that of labour

legislation

Labour legislation consists of over 150 laws related

to different aspects


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According to Indian constitution, labour is a commonsubject among the central and the state governments

While the central government enacts, amends andrepeals most of the legislation, the major

administrative authority to adopt and implement the

laws rests with the state governments


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The current scenario is characterized by severalsignificant developments

The matter of procedural implementation regarding

labour legislation has significant bearing on theimplementation of strategies in the areas of objective

setting, strategic choice, social responsibility,

formulation and implementation of HR policies and

various operational strategies


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10. Environmental Protection and

Pollution Control Requirements

The issue of physical environment has attained global

and national importance owning to a variety of

reasons

There are a host of Central and State laws dealing

with the prevention and control of pollution and

environmental control


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Several issues of importance in strategic management

are concerned with environmental protection andpollution control

Some of the major ones are the designing of vision

and mission statements, objective setting and

constraints of objective achievement, environmental

appraisal


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11.Consumer Protection

Requirements

In the course of strategy implementation, companies are

increasingly required to conform to legislative measures to

protect the consumers

Consumers or customers constitute a significant aspect in

various issues in strategic management

They are the subject of the organizations vision and mission,objectives are set to satisfy customers and the business

definition is in terms customer needs and customer groups


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12. Procedures for availing benefits from incentives andfacilities

Project implementation to put strategy into actionrequires a consideration of

Incentives

Subsidies and

Facilities

While providing incentives, the government does not playa regulatory but a promotional role

The fiscal, monetary and budgetary policies if thegovernment are aimed at the stimulation of activity in thepriority industrial sectors


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Government also plays a promotional role of in terms of

PurchasingPricing

Distribution

Availability of raw materials

Provision of infrastructural facilities


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Overview of Project and Procedural Implementation

An important question that arises is how the strategists should

react to regulation

Strategists may adopt a submissive, confrontational or

collaborative stance

Project and Procedural implementation results in the necessary

infrastructure and required permission for an organization to

proceed with other aspects of strategy implementation.


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Thank You

Documents

A Strategy Implementation