Functional Level Strategies

Functional Level StrategiesAre possible ways of bringing the desired satisfaction to organizational customers(BPR and TQM) or much more efficiencies to the organization it self(Kaizen and JIT)Possible strategies of bringing customers satisfaction include1) BPR and TQM(Total Quality management)

Functional level Strategies BPR is all aboutMinimizing bureaucracies /signatures in the organizational contextOffering many services in a single windowReducing time/cost of offering servicesSupporting business activities with a networked technology Bringing radical changes in the operational processes-

Functional level Strategies

Advantages of BPRDisadvantages of BPRReduces time/costMuch concern to a work Increment in customers satisfactionLittle concern to workersIncreases efficiencies(organizational)Much burden/responsibilities on an employeesBetter competitive positionsMismatch between salary being and nature(multiple jobs) being doneEquipping employees with multiple skills Much benefits to customers and organizations than to employees

Functional level Strategies 2) TQM (Total Quality Management)Is a recent mgt concept which is aimed at ensuring quality in all aspects of operational processesIs expected to reduce defectsIs believed to reduce customers rate of complaintsBring competitive advantages

Functional level Strategies Possible strategies of bringing much more efficiencies to an organization include(KAIZEN and JIT)1) KaizenIs a Japanese word which means change for better or it means muda(waste management)Means reutilization of discarded/idle resources

Functional level Strategies Kaizen Saves dollarBring good image/competitive position for a companyHave easy access to raw materials locallyIs belived to reduce cost of productionEnsures consistency in operational activities

Functional level Strategies 2) JIT(Just in time System)Is aimed at delivering the desired quantities of raw materials to a company when ever needed.State that No Store is needed to handle raw materialsIs Expected to reduce insurance/inspection/store/guard/deteriaoration and other expenses

Chapter Four Strategy ImplementationStrategy implementation - Follows strategy formulation activities-Involves putting in to practice the selected strategy-Is the most difficult part of strategic management activities-Is a mass/media/energy/budget issue-Is not to be made overnight.-May face accidental challenges

Strategy Implementation Is all about deploying and making use of allotted budgets Is all about applying new management concepts at the work placesIs all about converting say a project idea/paper work in to actual work.Requires participation of many employees Requires applying much/intensive supervision at the work places

Key issues in Strategy ImplementationCommunicating formulated strategy to concerned partiesInjecting and exercising new/old mgt conceptsDrafting and formulating organizational structure/sections as wellEmploying the right man power to the right jobProper allocation of budgetsNominating and establishing a stand by committee

Strategy Implementation Strictly putting in to practice the formulated strategy and on time as wellProper allocation of skills/technology /organizational resources required

Factors that determine Success of the Implemented Strategy Knowledge possessed at handCommitment/ willingness of officials/employeesTechnology in useAvailability of budgetDegree of competitionAdequacy of man power requiredCompetitors reaction

Strategy ImplementationManagerial supervision being exercised Incentive levels , and amounts to be paid Changes in the governments policy Degree of belongingness, transparency

Comparison of Strategy Formulation and Implementation

Criteria To compare with Strategy FormulationStrategy Implementation Focus Focuses on identifying, screening and selecting the best strategy Focuses on putting in to practice the selected i.e the best strategy Budget Requires lower budgetRequires too much budgetEasiness of performing Very easy to carry outVery difficult to carry outParticipation of Employees Too FewToo much ResourcesInvolves specification of resources Involves utilization of resources Degree of secret/confidentiality Required Too much Not too muchNature of workCommittee/paper workActual workSkill required Mental work Physical workDegree of communication required Not too much communication to employees Too much communication to employees

Comparison of Strategy Formulation and Implementation

New/old mgt concepts to be applied Specifies what new/old mgt concepts to apply Implements new/old management concepts To be made by Mostly by strategist Mostly by managers Takes input From environmental scanning From strategy formulation Prerequisite Environmental scanning Strategy formulation Affects Strategy implementation Strategy review, evaluation and control Affected by Both by a number of internal and external factors Both by a number of internal and external factors

Chapter Five Strategy Review, Evaluation and ControlIndividual Assignment (10%)-Write in detail onA)Strategy Review : Basic concepts, why for, how, when , methods, objectives and expected challenges.B)Strategy evaluation: Basic concepts, why for, how, when , methods, objectives and expected challenges.C) Strategy Control: Basic concepts, why for, how, when , methods, objectives and expected challenges.

Course Evaluation

Course Evaluation Group Assignment One(Environmental Analysis):20%Group Assignment Two(Article Review): 20%Individual Assignment Three: Explain/write on strategy review, evaluation and Control :10%Final Exam: 50 %(Coverage chapter 1,3 and 4 only) and exam type discussion questions(25%) and case (25%)

END OF THE COURSE !!!

THANK YOU!!!WHAT DETERMINES YOUR SUCCESS IS THE STRATEGY THAT YOU FOLLOW AND IMPLEMENT!(Wendwesen-Siyum(Assi. Professor of Management)