strategic management group 8

8/2/2019 Strategic Management Group 8

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A

Presentation on

SWOT ANLYSIS, STRATEGY

IMPLEMENTATION AND

OPERATIONALIZING THE STRATEGY

PRESENTED BY: PRESENTED TO:

Darshan Goswami Dr. Rajesh Bhatt

Rajesh ChauhanAmit Vaja

Harshil Dodiya

Rahul Dhurka


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SWOT Analysis

A scan of the internal and external environment is an

important part of the strategic planning process.

Environmental factors internal to the firm usually can

be classified as strengths (S) or weaknesses (W), andthose external to the firm can be classified as

opportunities (O) or threats (T). Such an analysis of

the strategic environment is referred to as a SWOT

analysis.


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Strengths:

It includes following factors

-Skill or important expertise

-Valuable physical assets

-Valuable human assets

-Valuable intangible assets

-Competitive capabilities-Achievement


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Weaknesses:

It includes following factors

-Lack of physical,human,organisational or

intangible assets that are critical to firms

survival and success in that particular industry.

-Lack of appropriate skill or expertise in

leveraging resources in competing with other

firms.

-Lack of strategic direction.


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Opportunity:

It includes following factors-Emergence of new customer segments in the

market.

-Changes in customer habits and preferences.-Changes in the

technological,regulatory,social,or economic

environment of the industry.


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Threats:

It includes following factors-Entry of new competitor.

-Slow market growth.

-Major technological change.-Appearance of new substitute product.


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STRATEGY IMPLEMENTATION

Definition

The implementation of polices and strategies is

concerned with the design and management of system

to achieve the best integration of people, structures,

processes and resources in reaching organizational

purpose.

- According to Steiner


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Process of Strategy Implementation

1) Determine Key Managerial Task :

2) Resource Analysis :

3) Resource Allocation :

4) Managing Implementation :

5) Evaluation and Review of Strategy :


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Key Consideration in Strategy

Implementation

- There are six key factors for effective strategy implementation

1) Action Planning :

2) Organizational Structure :3) Human Resource Factors :

4) Annual Business :

5) Monitoring and Control :

6) Linkage :


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Operationalizing the Strategy

Operational Effectiveness:

Performing similar activities better than

rivals. This includes efficiency ofprocesses.

Success requires both the right strategy and

operational effectiveness.


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According to Porter

O.E. refers to any number of practices that

allow a company to better utilize its inputs by,

Reducing defects in products OR

Developing better products faster.


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Organizational Success


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For Example,


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Areas of Operational Effectiveness

Productivity

Processes

People


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Productivity

Just in Time Manufacturing

Cycle Time Reduction

Group Technology

Mass Customization

Concurrent Engineering & Processing

Optimized Production Technology


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Productivity

Productivity is the measure of the relative

amount of input needed to secure a given

amount of output.

It is expressed in mathamatic as

Ratio of quantity of output to the quantity of

input


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Just in time Manufacturing

It is a Japanese productivity technique

It designed to tackle cost reduction from a system-

wide perspective

It include simple product design, fewer partrequirements, streamlining of process flow,

change or reduction of production set-up time

It is result into no inventory


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Cycle Time Reduction This technique aims at minimizing the time taken

for the allocated work to be done at each

workstation on an assembly line.

Group Technology

It is a way of organizing and using data for

components that make-up a number of products

which have similar properties and manufactueingrequirements.


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Mass Customization It attempts to blend the desirable attributes of

mass production and customized production.

Concurrent Engineering and processing

It involves integrated, simultaneous design of

products or services and their related processes,

including manufacturing and support.


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Optimized production technology It is a computer based system for planning

production, materials requirements and resource

utilization through focusing on the bottleneck

work centres and careful management of

materials and resources related to those centers,

so that the output is maximized and inventories

are reduced.


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Processes

Enterprise-wide Resource Planning

Benchmarking

Supply-Chain Management

Outsourcing


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Processes

Processes are courses of action used for

operational implementation.

They are often implemented through methods


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Enterprise-wide Resource Planning

o They are software packages that link the isolatedinformation centers into an integrated enterprise widestructure of functional and activity databases.

Benchmarkingo It is the process aimed at finding the best practices

within and outside the industry to which anorganization belongs.

o Its Purpose is to find the best performance In an areaso that one could match ones own performance withthem and even surpass them.


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Supply-Chain Management It traverses the whole value chain to manage the

procurement of a whole range of inputs that arerequired to produce a product or services so that theprocess can be performed in an integrated an

optimum manner Outsourcing

It is a variation of the traditional make-or-buy conceptwhere portions of value chain activities arecommissioned to external suppliers on the basis ofeconomic analysis, so that the firms own focusremains on its core competence


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People

Strategic Recruitment and Selection

Performance Management


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People

People are the stakeholders in the organization.

Strategic Recruitment and Selection

It encompasses manpower planning aligned withstrategies, scientific selection processes designed on the

basis of psychometry to have the right match betweenemployee and job requirements, campus recruitmentthrough job and career websites

Performance Management

It includes aspects, such as, psychographic testing for

placement, carefully designed orientation programs,flexibility in working hours, application of behavioralsciences in designing motivational systems, building-upself-directed teams


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Elements foe successful implementation of

overall strategy:

There are three elements:

1) Annual objectives.

2) Functional strategies.

3) Functional policies.


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Annual objectives

Purpose of annual objectives:

1) Guideline.

2) Sources of legitimacy.3) Standards of performance.

4) Source of motivation.


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Functional strategies

The objectives of the functional strategy are:1) Profitability.

2) Human talent.

3) Financial health.4) Cost efficiency.

5) Product quality.

6) Market share.7) Innovation.


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Functional policies.

Need for functional policies:

1) Strategic decisions are implemented by all

parts of an organisation.

2) Basis available for controlling activities.

3) Time spent on decision making may be

reduced.

4) Coordination across the different functions

takes place.


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Bibliography

Business Policy & Strategic Management,

Mcgrow Hill

www.managementstudy.com


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