Functional Level Strategies

Functional Level Strategies

Are 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 include
1) BPR and TQM(Total Quality
management)

Functional level Strategies

BPR is all about
Minimizing bureaucracies /signatures in the
organizational context
Offering many services in a single window
Reducing time/cost of offering services
Supporting business activities with a
networked technology
Bringing radical changes in the operational
processes
-

Functional level Strategies

Advantages of BPR

Disadvantages of BPR

Reduces time/cost

Much concern to a work

Increment in customers
satisfaction

Little concern to workers

Increases
efficiencies(organizational)

Much burden/responsibilities on
an employees

Better competitive positions

Mismatch between salary being

and nature(multiple jobs) being
done

Equipping 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 processes
Is expected to reduce defects
Is believed to reduce customers rate
of complaints
Bring competitive advantages

Functional level Strategies

Possible strategies of bringing much
more efficiencies to an organization
include(KAIZEN and JIT)
1) Kaizen
Is 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 dollar
Bring good image/competitive position
for a company
Have easy access to raw materials locally
Is belived to reduce cost of production
Ensures 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 materials
Is Expected to reduce
insurance/inspection/store/guard/deteri
aoration and other expenses

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

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

Key issues in Strategy

Implementation
o Communicating formulated strategy to
concerned parties
o Injecting and exercising new/old mgt concepts
o Drafting and formulating organizational
structure/sections as well
o Employing the right man power to the right job
o Proper allocation of budgets
o Nominating and establishing a stand by
committee

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

Factors that determine

Success of the Implemented
Strategy
o
Knowledge possessed at hand
o Commitment/ willingness of
officials/employees
o Technology in use
o Availability of budget
o Degree of competition
o Adequacy of man power required
o Competitors reaction

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

Comparison of Strategy
Formulation and
Implementation
Criteria To compare Strategy
Strategy
with

Formulation

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
budget

Requires too much

budget

Easiness of
performing

Very easy to carry out Very difficult to carry

out

Participation of
Employees

Too Few

Too much

Resources

Involves specification
of resources

Involves utilization of
resources

Degree of
secret/confidentiality
Required

Too much

Not too much

Comparison of Strategy
Formulation and
Implementation
New/old mgt
Specifies what
Implements
concepts to be
applied

new/old mgt
concepts to apply

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
Control
Individual Assignment (10%)
-Write in detail on
A)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!(WendwesenSiyum(Assi.
Professor
of
Management)