Topic: Strategy Implementation and Strategic Controls

Order Description Module 4 - SLP Strategy Implementation and Strategic Controls Simulation In Module 4, you will contin" rel="nofollow">inue with the CVP analysis you completed in" rel="nofollow">in the Module 3 SLP. Scenario Contin" rel="nofollow">inuation: It is still January 2, 2012. You have just completed your revised SLP3 strategy usin" rel="nofollow">ing CVP analysis, and you are eager to implement your decisions for 2012 through 2014. Usin" rel="nofollow">ing the CVP analysis from SLP3, run the simulation for a fin" rel="nofollow">inal time. Again" rel="nofollow">in, be sure to take notes about your analysis and the document the reasonin" rel="nofollow">ing behin" rel="nofollow">ind your decisions. Fin" rel="nofollow">inalize your report showin" rel="nofollow">ing the strategy you have used. Assignment Overview Usin" rel="nofollow">ing the strategy that you developed in" rel="nofollow">in SLP3, run the simulation. Document your results as you did previously. Review and analyze these results, and develop a fin" rel="nofollow">inal strategy. Please turn in" rel="nofollow">in a 6- to 8-page paper, not in" rel="nofollow">includin" rel="nofollow">ing cover and reference pages. Keys to the Assignment The key aspects of this assignment that should be covered and taken in" rel="nofollow">into account in" rel="nofollow">in preparin" rel="nofollow">ing your paper in" rel="nofollow">include: The revised strategy consists of the Prices, R&D Allocation %, and any product discontin" rel="nofollow">inuations for the X5, X6, and X7 tablets for each of the four years: 2012, 2013, 2014, and 2015. You must present a rational justification for this strategy. In other words, you must provide support for your proposed strategy usin" rel="nofollow">ing fin" rel="nofollow">inancial analysis and relevant theories. Use the CVP Calculator and review the PowerPoin" rel="nofollow">int that explain" rel="nofollow">ins CVP and provides some examples. You will need to crunch some numbers (CVP Analysis) to help you determin" rel="nofollow">ine your prices and R&D allocations. Make sure your proposed changes in" rel="nofollow">in strategy are firmly based in" rel="nofollow">in this analysis of fin" rel="nofollow">inancial and market data and sound busin" rel="nofollow">iness prin" rel="nofollow">inciples. Your goal is to practice usin" rel="nofollow">ing CVP and get better at it. Present your analysis professionally, makin" rel="nofollow">ing strategic use of tables, charts, and graphs. Time Lin" rel="nofollow">ine Summary: SLP1 2015: Hired on December 15. Turned in" rel="nofollow">in first report to CEO Smothers. SLP2 You are returned – via Time Warp – to January 1, 2012. You make decisions for 2012 – 2015. December 31, 2015 – You have revised all four years, and you write up your summary report. SLP3 Apparently, your SLP2 decisions were not “good enough,” as you’ve again" rel="nofollow">in been returned to January 1, 2012. It is once again" rel="nofollow">in January 1, 2012: You decide to use CVP analysis to develop a revised four-year plan for your strategy. You analyze the results of your first decisions from SLP2, takin" rel="nofollow">ing notes, and documentin" rel="nofollow">ing your decision-makin" rel="nofollow">ing process. You use the CVP Calculator to help you develop your strategy. Your notes explain" rel="nofollow">inin" rel="nofollow">ing the logic behin" rel="nofollow">ind your decisions. SLP4 It is still January 2, 2012. Usin" rel="nofollow">ing your CVP analysis from SLP3, you run the simulation, implementin" rel="nofollow">ing your revised four-year plan. You keep track of your fin" rel="nofollow">inancial and marketin" rel="nofollow">ing results year over year. You submit your fin" rel="nofollow">inal 6-8 page report, which in" rel="nofollow">includes your Fin" rel="nofollow">inal Total Score. You compare – and report – your results with previous results. SLP Assignment Expectations Your paper will be evaluated usin" rel="nofollow">ing the gradin" rel="nofollow">ing rubric. Tips and Suggestions Note the followin" rel="nofollow">ing tips and suggestions: You might fin" rel="nofollow">ind these downloads useful: Decision Matrix Table - Download this Word doc with a blank table you can use to show your proposed strategy decisions. PowerPoin" rel="nofollow">int discussin" rel="nofollow">ing CVP - Provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showin" rel="nofollow">ing how to use the CVP Calculator. CVP Calculator - This an Excel-based calculator that you can use to determin" rel="nofollow">ine prices, volumes, and profits. Keep in" rel="nofollow">in min" rel="nofollow">ind that it will tell you what need, but the market determin" rel="nofollow">ines what you actually get. Include a cover page and a reference page, in" rel="nofollow">in addition to the 6-8 pages of analysis described above. Include appropriate section headin" rel="nofollow">ings. Use charts and graphics strategically, but do not use these as "space fillers." Include lengthy tables, etc. in" rel="nofollow">in an Appendix in" rel="nofollow">instead. Cite and reference all sources that you use in" rel="nofollow">in your work, in" rel="nofollow">includin" rel="nofollow">ing those that you paraphrase. This means in" rel="nofollow">include citations and quotation marks for direct quotes, and citations for that in" rel="nofollow">information which you have "borrowed" or paraphrased from other sources. Follow TUI Guidelin" rel="nofollow">ines for well-written papers. Module 4 - Background Strategy Implementation and Strategic Controls Strategy is implemented usin" rel="nofollow">ing organizational design (structure), people, culture, and control systems. Strategy must successfully work through these elements in" rel="nofollow">in order to produce performance. No matter how well a strategy is conceived, if an organization's people cannot implement it, if the culture cannot support it, if the structure cannot coordin" rel="nofollow">inate it, and if the systems cannot measure and control it—the strategy will fail. We will start by considerin" rel="nofollow">ing how of each of these components in" rel="nofollow">individually lin" rel="nofollow">ink to strategy. By way of the Case analysis, we will examin" rel="nofollow">ine the in" rel="nofollow">integration or "fit" between the various components and strategy. Structure Organizational structure refers to the manner in" rel="nofollow">in which the lin" rel="nofollow">ines of communication of authority are established, the manner in" rel="nofollow">in which work is divided up among organizational members, and the way that communication and work are coordin" rel="nofollow">inated. Different types of structures support different types of strategies. The key elements of structure that have the greatest effect on the success or failure of strategy implementation are centralization, boundaries, networks, and virtual organization. Centralization Centralization refers to the level of concentration of decision makin" rel="nofollow">ing. In a highly centralized organization, decisions are made by a relatively small number of people, usually concentrated at the highest levels of the organization. Standardization is common in" rel="nofollow">in centralized organizations, thus favorin" rel="nofollow">ing economies of scale and efficient value chain" rel="nofollow">ins. Decentralized organizations are characterized by flexible and autonomous decision-makin" rel="nofollow">ing groups at operational levels in" rel="nofollow">in the organization. Such groups have the ability to rapidly adjust to changes in" rel="nofollow">in the marketplace and are well-suited to strategies that require in" rel="nofollow">innovation. However, because of duplication, economies of scale are difficult to achieve. Emergin" rel="nofollow">ing Structures Borderless Organizations: Takin" rel="nofollow">ing cross-functional teams to a new level, the borderless organization does not just assemble teams with members from different organizational levels and functions. Instead, the borderless organization removes barriers both vertically (between levels) and horizontally (between functions or departments). The implications for strategy implementation in" rel="nofollow">include in" rel="nofollow">increased in" rel="nofollow">information, transparency, and flexibility. Alliance Networks: These are collections of suppliers, distributors, customers, and even competitors who have the ability to brin" rel="nofollow">ing needed assets to bear on an urgent problem where there is in" rel="nofollow">insufficient time to develop the needed resources and capacities in" rel="nofollow">in-house. Organized and coordin" rel="nofollow">inated onlin" rel="nofollow">ine, these networks can be mobilized and put to work in" rel="nofollow">instantaneously. Virtual Corporations: An extension of Alliance Networks, the virtual corporation is an extra-organizational coalition of people and organizations brought together expressly to work on a specific problem or project. They can be assembled rapidly and dispersed as soon as the project is over, representin" rel="nofollow">ing the ultimate in" rel="nofollow">in flexibility and speed in" rel="nofollow">in strategy implementation. The followin" rel="nofollow">ing readin" rel="nofollow">ing is an exposition on how various types of teams can be useful in" rel="nofollow">in strategy implementation: Pryor, M.G., Sin" rel="nofollow">ingleton, L.P., Taneja, S., and Toobs, L.A. (2009). Teamin" rel="nofollow">ing as a strategic and tactical tool: An analysis with recommendations. International Journal of Management, 26 (2), 320-334. Retrieved on November 6, 2012, from ProQuest. Review this presentation on Organizational Design by Professor Anastasia M. Luca, Ph.D. MBA. Strategic Controls (Systems) Three organizational systems are essential to controllin" rel="nofollow">ing strategy implementation: Accountin" rel="nofollow">ing and budgetin" rel="nofollow">ing systems: These systems can be complex and not easily adapted. If a new strategy requires data that is not easily accessible through existin" rel="nofollow">ing accountin" rel="nofollow">ing systems, implementation can be slowed, and a potentially successful implementation can be jeopardized. If a new proposed strategy does not fit a familiar pattern, decision makin" rel="nofollow">ing can be become risky and unpredictable. Information Systems: Information technology is playin" rel="nofollow">ing an ever greater role in" rel="nofollow">in strategy implementation. IT provides poin" rel="nofollow">int-of-sale in" rel="nofollow">information between retailers and manufacturers, streamlin" rel="nofollow">ines logistics and distribution, and controls in" rel="nofollow">inventories. IT systems must be capable of providin" rel="nofollow">ing the right in" rel="nofollow">information in" rel="nofollow">in the right format to the right people at the right time. Measurement and Reward Systems: Rewards can be used to shape behavior in" rel="nofollow">in the direction of meetin" rel="nofollow">ing strategic objectives. Rewards must be connected to measures of goal attain" rel="nofollow">inment (e.g., specific in" rel="nofollow">increases in" rel="nofollow">in market share), and proper time horizons (future rewards for future goals). Review this presentation on Strategic Controls by Professor Anastasia M. Luca, PhD MBA. People Strategies that are based on distin" rel="nofollow">inctive competencies or unique capabilities are often dependent on people and their skills to carry them out. Thus, for successful implementation, sufficient numbers of people with the right skill sets are essential. In-house or Import? Hirin" rel="nofollow">ing raw talent and growin" rel="nofollow">ing employees with the needed qualifications maximizes fit, but it can take years. Retrain" rel="nofollow">inin" rel="nofollow">ing existin" rel="nofollow">ing workers with new skills can be problematic when old employees resist "learnin" rel="nofollow">ing new tricks." Hirin" rel="nofollow">ing employees with needed skills external to the organization is faster, but there is no guarantee that even they will fit well within" rel="nofollow">in the organization’s culture. Motivation: It is not enough to have the right number of people with the right skills; people must also be motivated to work toward successful strategy implementation. Much is known about motivation, and many tools are available; these in" rel="nofollow">include tangible rewards (e.g., bonuses) and in" rel="nofollow">intangible rewards such as self-fulfillment. Perhaps the motivator with the most potential for elicitin" rel="nofollow">ing long-term commitment to fulfillin" rel="nofollow">ing the firm's strategic goals is that of empowerment, which gives employees the discretion and autonomy to use their in" rel="nofollow">initiative. The followin" rel="nofollow">ing article highlights the importance of havin" rel="nofollow">ing the right people in" rel="nofollow">in place to achieve strategic goals: Garrow, V. and Hirsh, W. (2008). Talent management: Issues of focus and fit. Public Personnel Management, 37(4), 389-403. Retrieved on August 29, 2014 from ProQuest. Culture The fit between an organization’s culture and its strategy is critical. If a firm is dependin" rel="nofollow">ing on in" rel="nofollow">innovation to achieve differentiation, but the culture is risk averse or has a tendency to punish mistakes, the strategy will in" rel="nofollow">in all likelihood fail. Culture can support the strategy when three elements are in" rel="nofollow">in alignment: Shared values that are aligned with the corporate vision and strategic focus along with a management style that fosters behavior that will support the competencies that confer competitive advantage. Norms can act as strong controls for strategic implementation. They encourage behavior that is in" rel="nofollow">in alignment with shared values. People can circumvent rules, and they cannot be watched all of the time, but norms can promote the desired behavior even when nobody is watchin" rel="nofollow">ing. Symbols model for employees what values and norms are important. Some important symbols in" rel="nofollow">include the vision and style of the founder of the company and folklore or stories that embody company values, rituals, and routin" rel="nofollow">ines, and which rein" rel="nofollow">inforce the types of events and behaviors that are most desired and celebrated. The followin" rel="nofollow">ing readin" rel="nofollow">ing ties together the importance of systems, strategy, structure, and culture. It is highly readable and will help you see how all of these elements are in" rel="nofollow">interdependent and must align to achieve successful implementation: Heneman, R. L., Fisher, M. M., and Dixon, K. E. (2001). Reward and organizational systems alignment: An expert system. Compensation & Benefits Review, 33(6), 18-29. Retrieved on November 6, 2012, from ProQuest. Optional Readin" rel="nofollow">ing Alignin" rel="nofollow">ing organizational culture with busin" rel="nofollow">iness strategy. (2013, November). Towers Watson. Retrieved on August 29, 2014 from https://www.towerswatson.com/en-US/Insights/Newsletters/Global/strategy-at-work/2013/viewpoin" rel="nofollow">ints-qa-alignin" rel="nofollow">ing-organizational-culture-with-busin" rel="nofollow">iness-strategy Durden, C. (2012). The lin" rel="nofollow">inkages between management control systems and strategy: An organic approach. Proceedin" rel="nofollow">ings from The International Conference on Accountin" rel="nofollow">ing and Fin" rel="nofollow">inance. Sin" rel="nofollow">ingapore: Global Science and Technology Forum. Retrieved on August 29, 2014 from ProQuest. Klosowski, S. (2012). The application of organizational restructurin" rel="nofollow">ing in" rel="nofollow">in enterprise strategic management process. Management, 16(2), 54-62. Retrieved on August 29, 2014 from ProQuest.