Failing To Implement Strategies: Exploring Possible Disconnects Between The Theory And

Practice Of Strategy Implementation

Introduction

Strategic preparation and implementation in an entity is the very core of any business

body and operation. A business’s strategy is the plot of organization that is used to venture in a

market location, carry out its operations, draw attention to potential clients, compete effectively,

and accomplish organizational objectives (Abdullah 2008, p. 21). Hence, strategy is the plan of

the company in competition, attracting customers and attaining the goals. It is the central spot of

the industry practices and competitive tactics in the operational administration. Exceptional

implementation, in contrast, is the utmost assessment of management quality that results in the

most dependable formula for making businesses into outstanding players in the industry.

To allow a business to continue to exist, stay competitive and have continuous

development, a business must not only maintain a fine and practical strategy and, but most

effectively adept implementation shapes an inner part of the general business development and

triumph (Abdullah 2008, p. 25). Thus, strategy is the key for the company’s continuous

existence. In numerous cases at the present time, strategic preparation and implementation are

utilized to improve a competitive intellect background in the internal business (Viviers, Saayman

and Muller, 2005: 577-579). Therefore, implementing and completing strategy are the basic

management objectives. Additionally, proficient strategy and exceptional implementation are the

most reliable symbols of quality and excellent management.

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 Research Questions

1. Do strategy implementation practices by general and middle management reflect existing

implementation theory?

2. Which hard issues have most effect on strategy implementation?

3. Which soft issues have most effect on strategy implementation?

4. Which other (non hard& non soft) issues affect strategy implementation?

5. Which key factors relate to success and which key factors relate to implementation failure?

Significance of the study

The study intends to help the reader of this dissertation from different fields to understand

and evaluate the issues (hard and soft) that influences the company’s process of strategy

implementation. The elemental point of this study is present to the readers with a comprehensive

and objective dissertation and to impart the knowledge on the key factors contributing to the

success and failure of strategy implementation. Therefore, the results of this study will benefit

the readers, management students, the professors and instructors not only in business subjects but

also in other related subjects, and the interested readers. This study is significant for the reason

that it will supply the essential information about theoretical points in strategy implementation,

including the analysis on the survey conducted by the researcher. This study also aims to offer

ways in effectively communicating strategies that will result to its successful implementation.

The subsequent information to be provided is essential not just for business managers or

executives but also for business/ management educators and undergraduates. In addition, this

study will serve as an academic model for upcoming studies of the identical subject matter in the

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future. Potential researchers will gain from this study, and it will offer them the facts necessary

to evaluate their study throughout their relevant time and usability.

Overview on Chapters

First is the introduction section which gives an overview of the general idea on the topic

which is strategy implementation and related issues. Next is the research questions which are the

inquiries to be answered by the use of literary reviews and implication on survey. Then, the

significance of the study section includes the individuals, groups, researchers and other entities

that may benefit or make use of this paper. On this chapter, the summary of the chapter titles and

content are to be enumerated. The next section includes the concrete literature review involving

theories on the strategy implementation and also the discussion of main aspects that influence

strategy implementation. Under the literature review section, also explains the review of hard

and soft issues affecting strategy implementation. Methods or models that may have effect on

overall strategy management will be tackled. Common and best practices on implementing

strategies are also included. The next section after the literature review will be the discussion of

methodology on the survey conducted by the researcher. The survey conducted by the researcher

will give rise to the findings and analysis section explaining the results on the study. The

research made is compared to another survey which uses relevant information gathered by few

authors. The paper will also talk about the limitations of the study, challenges experienced. The

final section will discuss the conclusion on the overall results of the dissertation and provide a

summary on the research questions answered regarding strategy implementation that have arisen

at diverse points in our literature review and survey conducted by the researcher. The general

findings and analysis will be the basis for recommendations.

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 Methodology in Research for Related Literature

In order to come up with theories and information about strategy implementation, the researcher

has analyzed pertinent academic journals such as Making Strategy Work: A Literature Review

on the Factors influencing Strategy Implementation by Yang Li, Sun Guohui and Martin J.

Eppler, peer reviewed journals (such as the Strategic Management Journal (ten articles), the

Academy of Management Journal (five articles), the Journal of Management Studies (four

articles), Long Range Planning, Journal of Management, Academy of Management Executive,

Human Relations, Sloan Management Review, Journal of Marketing, etc.) using the literature

databases of EBSCOhost, ProQuest ABI, Sciencedirect, JSTOR and Wiley Interscience (Li. et.al.

2008).

Literature Review

In this section, the researcher has reviewed several recognized studies and examine

their research perspective, their key results, theoretical origins, the research methods used with

the systematic techniques employed. As the center of paper’s literature review, the factors

that manipulate strategy implementation are talked about, in addition to numerous frameworks

or models that add or relate relevant factors to each other. Then, briefly discussed are the

theoretical origins of the reviewed studies. Different authors’ works have contributed some

interesting views on strategy and the chapter will attempt to discuss them here. It also examines

the factors that affect its successful implementation in organizations.

Concept of Strategy Implementation

Strategy is a blueprint or a map which incorporates objectives, rules and functions in an

organization as one (Zaribaf &Hamid 200, p. 2). According to Henry Mintzberg's viewpoint as

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cited by Ansoff, Edward &Mc Donnell (1990), strategy has an unusual meaning. He asserts a

characterization of the word primarily and articulates as people search for basically a sole

connotation for its idea; they in fact relate it in diverse meanings. Mintzberg asserts his 5 P’s in

the definition of strategy namely plan, perspective, ploy, position, and pattern. These terms are

considered by Mintzberg as substitute for the word 'strategy' (Mintzberg 1992, p. 14).

Plan - various type of deliberately planned course of action, an instruction (or collection of

procedure) to react with circumstances. By this meaning, strategies contain two fundamental

characteristics: they are set of actions planned as early as possible for attaining a target, and they

are developed intentionally and decisively.

Ploy - As plan, a strategy can be a scheme too, in actuality just a particular maneuver planned to

outsmart an adversary or competitor.

Pattern - If strategies can be planned, they can also be comprehended. In other terms, describing

strategy as plan is not adequate; it also require for clarity that covers the consequential behavior:

Strategy is a pattern, particularly, a guide in a flow of actions. Strategy is constancy in

performance, whether or not planned. The characterizations of strategy as plan and pattern can be

relatively self-sufficient of one another: plans can possibly be unrealized, whereas patterns may

emerge devoid of presumption. Plans are anticipated strategy, while patterns are recognized

strategy; from this it can be distinguished as intentional strategies, where intentions that lived

earlier were realized, and growing strategies where patterns developed in the nonexistence of

intentions, or despite them.

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Position – it is distinctively a means of situating an organization in a setting. By this

characterization, strategy turns out to be the intervening force, or "equal", between organization

and its setting, to be precise, among the internal and the external circumstances.

Perspective - its content is comprised not just of a preferred position, but of an embedded means

of outlook on world. The personality of an individual affects the strategy as a whole. What is of

key significance is that strategy is a perspective common on members of a business, by their

purpose and / or by their perceptions. As a consequence, when strategy is discussed in this

context, the thinking of a group of people is being accessed- individuals unified by common

accepted idea and / or actions.

Within the general strategy of a business, executives classify an open strategy, which is the map

of action that portrays resource distribution and activities for dealing with the surroundings and

achieving the company’s goals. The core of understanding and creating strategy is choosing how

the business will be special. Managers formulate decisions on the subject of whether the

corporation will execute different activities or will carry out similar activities in a different way

than competitors do. Strategy unavoidably transforms over time to be in shape with

environmental surroundings, but to continue to be competitive, companies widen strategies that

focus on central competencies, expand synergy, and craft importance for consumers.

Levels of Strategy

Another attribute of strategic management features the organizational level to which strategic

issues pertain. Strategic managers usually assume based on the three levels of strategy—

corporate, business, and functional

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Corporate Level Strategy

Corporate level strategy takes up the utmost level of strategic decision-making and includes

actions with regards to the goal of the company, purchase and distribution of resources and

management of strategies of diverse strategic business units for best possible performance. Top

management of the business formulates such decisions (Floyd & Wooldridge 1997, p. 468). The

character of strategic decisions is likely to be value-oriented, theoretical and less physical than

decisions at the business or functional level.

Business-Level Strategy

Business-level strategy is pertinent in those companies, which have diverse businesses-

and all business is perceived as strategic business unit (SBU). The primary idea in SBU is to

recognize the distinct autonomous product/market sections served by a company (Floyd &

Wooldridge 1997, p. 470). Given that each product/market section has a distinct setting, a SBU

is produced for every section. Every SBU situates its individual strategies to formulate the best

use of its resources knowing the surroundings it faces. At such a point, strategy is a complete

plan presenting objectives for SBUs, distribution of resources amongst functional quarters and

organization between them for best possible contribution to the attainment of corporate-level

objectives. Such strategies function inside the general strategies of the business. The corporate

strategy situates the long-term goals of the company and the broad limitations and guidelines

where an SBU functions. The corporate level will assist the SBU identify its range of operations

and also border or improve the SBUs processes by the resources the corporate level allots to it.

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Functional-Level Strategy

Functional strategy, as is recommended by the label, narrates to a particular functional

operation and the actions implicated within. Decisions inside the company at this level are

frequently articulated as tactical (Floyd & Wooldridge 1997, p. 470). Such decisions are

controlled and guarded by a few general strategic concerns. Functional strategy is involved with

fairly constrained plan providing objectives for particular function, distribution of resources

amongst diverse operations within that functional region and management between them for

most advantageous contribution to the attainment of the SBU and corporate-level objectives.

Strategy implementation is the method of assigning resources to sustain the selected

strategies (Barnat 1998, p. 12). This method involves the diverse management actions that are

essential to set strategy in activity, introduce planned controls that observe improvement, and

finally accomplish managerial objectives. Thus, strategy implementation is the approach in

which a business should build up, utilize, and integrate resources that will lead to a better

company performance.

The effective implementation of strategies involves four fundamental kinds of execution

abilities (Barnat 1998, p. 15):

 Interacting skills are articulated in running one's own and others' performance to attain goals

 Allocating skills are conveyed to abide in managers' skills to program duties and plan the

schedule, funds, and other resources competently.

 Monitoring skills engage the proficient use of information to adjust whichever troubles that

take place in the course of implementation.

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 Organizing skills are displayed in the skill to generate a casual organization or system to

equal each difficulty that arises.

The Strategic Management Process

It is essential to be aware of the whole process of strategic management in order to recognize

problems in the implementation stage. The are four elements on the process of strategic

management: environmental scanning, strategy formulation, strategy implementation and

strategy evaluation (Viseras, Baines & Sweeney 2005, p. 153). Formulation stage involves

mission, aims and determination of business guidelines whereas implementation involves

activities, financing and measures.

Environmental scanning is identified as a main role of successful managers functioning at

successful businesses (Bukowski& Michael 2013, n.p.). In effect, almost every big successful

company promotes to their managers to employ in scanning, and thus, it is such a helpful tool

that business leaders should make use of it.

In formulation of competitive strategy, thorough study on finding the best business strategy has

become a battle in the commerce. Managers ought to study the competitive aspects in their

location, assume a range of choices that aids the company to confront those possible threats, and

then execute the choices (Blahova & Knápková 2010, p. 62). Further details on strategy

formulation are discussed on the next subsection.

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 Strategy implementation as discussed on its concept section is the stage of assigning

resources to sustain the selected strategies. Thus, this is the stage where resources are allocated

as part of implementing the strategies.

Strategic evaluation regards primarily the breakdown and assessment of interferences at

the stage of strategic objectives (Ministry of Regional Development, n.d.). One of the

considerable features of strategic evaluation comprise of the confirmation of the adopted strategy

with respect to the existing and expected social and economic circumstances.

The Process of Strategy Implementation

The implementation process can differ from company to company, reliant basically on the details

of the planned strategy, but several essential steps can help out in the process and guarantee that

implementation will be a success and the strategic plan is efficient (Gupta 1987, p. 478). The

following are the fundamental steps in implementation process followed by majority of actual

companies: where is reference for this?

1. Assessment of the strategic plan. The first step in the implementation system includes taking

a look at the plan and assessment if the management is familiar of the strategic plan.

Evaluation is done carefully, and prerequisites of the plan that possibly be challenging are to

be highlighted. Recognition of parts of the plan can be impracticable or unnecessary in cost,

either of time or funds. Back-up plans and ideas in mind are to be kept in mind in case the

original plan did not succeed.

2. Establishment of vision for strategy implementation. This vision can probably be a chain of

objectives to be attained, step by step, or a chart of items that necessitate to be finished.

Assurance to let everyone recognize the anticipated outcome and its importance are to be

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 established on this step. This step includes creating a clear illustration of what the strategic

plan is projected to be achieved.

3. Selection of group members to assist in implementation of strategic plan. In this step,

selecting teammates are vital as they have an important role to play. The group members are

expected to be knowledgeable of strategy itself and well informed of his tasks and

responsibilities in the course of implementation stage. There should be assurance the team

members are reliable in whatever challenges the team may encounter. Also in this step is the

establishment of a team leader, if not the usual leader or manager, the team leader should

have the management and motivational skills.

4. Setting up of meetings for progress reports discussion. This stage includes presentation of the

record of targets or objectives, and letting the strategic planning group recognize what has

been already attained. Whether the implementation is on time, in advance of schedule, or late

of schedule, an assessment of the recent schedule regularly is to be prepared to talk about any

changes that must be made. Establishment of a rewards system that identifies success during

the process of implementation should be made.

5. Involvement of the upper management if needed. In this last step, the executives are

informed on the latest updates, and progress reports on the implementation of the plan should

be provided. The company management is to be informed of the progress of implementation

to let them know that they are a part of the process, and, in case those problems occur, the

management will be able to properly address the concerns or possible changes.

Issues That Influence Strategy Implementation

There are nine aspects that affect the implementation of a strategy (Li, Guohui & Eppler 2008, p.

15). These are explained as follows:

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Strategy Formulation

Strategy formulation is the method by which a business selects the most suitable routes of

action to attain its definite objectives (The Saylor Foundation, p. 1). This method is necessary to

an organization’s accomplishment, since it presents an outline for the actions that will direct to

the expected outcomes. Strategic plans are to be informed to all staff so that they are

knowledgeable of the organization’s goals, mission, and intention. Strategy formulation obliges

an organization to cautiously observe at the shifting surroundings and to be ready for the

potential changes that may arise. To be successful in implementation stage, the company should

correctly formulate the strategies first.

Strategy formulation and implementation are frequently interchanged. The two can be

contrasted in the following ways:

STRATEGY FORMULATION STRATEGY IMPLEMENTATION

Strategy formulation gives emphasis on Strategy implementation gives emphasis on
effectiveness. efficiency.

Strategy formulation is pointing forces Strategy implementation is administering forces

prior to the action. throughout the action.

Strategy formulation is mainly a logical Strategy implementation is principally an

procedure. operational procedure.

Strategy formulation necessitates good Strategy implementation necessitates enthusiasm

perceptive and methodical skills. and special management skills
 
Strategy implementation necessitates mixture
Strategy formulation necessitates among numerous individuals.
coordination amongst some individuals  
Source: Hrebiniak 2006, p. 14.

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Strategy Formulation in comparison to Implementation

Strategy formulation comprises the preparation and making of decisions that guide to the

founding of the company’s goals and the progress of a particular strategic plan. Strategy

formulation may possibly contain evaluating the external setting and internal problems and

incorporating the outcomes into objectives and strategy. This is in distinction to strategy

implementation, which is the utilization of executive and organizational tools to guide resources

in the direction of accomplishing strategic outcomes. Strategy implementation is the supervision

and execution of the strategic map. Managers may utilize influence, innovative equipment,

transformation in organization arrangement, or a incentive system to make sure that staff and

resources are used to create prepared strategy a reality.

Communication

In cautiously formulating a strategic plan in a certain business, the management is

expected to utilize its resources prudently, bringing collectively the best and most rational

efforts of the employees to achieve the goals of the company. A company is expected to spend a

considerable amount of time, intelligence, and possibly money if the management hired a

consultant (Gallagher 2007, p. 1). In some instances, there are aspects that companies neglect

while focusing on the bigger issues. One of the key reasons why the implementation of a

strategy fail is the neglect in internal communication. Employees are anticipated to follow the

strategic plan efficiently. Given that expectation, it is crucial to communicate more often with all

work acquaintances regarding the strategy and its implementation.

Ways to Communicate Company Strategy More Effectively

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It is vitally essential that employees should recognize the company strategy. Employees who are

familiar and knowledgeable in company strategy will be able to make enhanced day-to-day

choices that will complement the company goals. It is a common knowledge but businesses

frequently encounter difficulties in efficiently communicating these strategies to people outside

of the strategic arrangement group. In this section, common effective ways of communicating

strategies to employees will be discussed.

Primarily, the management should perhaps have a distinct means for communicating the

company strategy for its effective implementation. Handing out paper prints of your strategic

plans will not instantaneously anticipate the understanding of employees to company strategies

(Rapert, Velliquette & Garretson 2002, p. 302). Certainly, the management should prepare a

document for communicating the strategy to employees which is different to those copies given

to officers directly involved in implementation process.

Secondly, the communication should be short yet straight to-the-point, given that most of the

employees does not want to spend a long period of time understanding the company vision.

According to the article by the President of Center for Simplified Strategic Planning,

Inc ,Robert Bradford, a short summary in paper combined with an allotted 15-30 minute

informational meeting with managers is most efficient way for communicating the result of a

company’s strategic preparation meetings. Thirdly, the company should correct their

communication document. Meaning, everything to be communicated to the employees should be

with integrity, logical and somehow beneficial to everyone in the company. This is not as

difficult as it appears to be — the company should merely look at the content to be

communicated with employees and assess if communicating a strategy will be harmful. A very

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good example of this is sharing the view of the corporation's strategic competencies. Where is

reference for this?

The following are few supplementary ways that will facilitate in communicating a company

strategy more effectively:

Providing an extensive list of upright objectives. Instead of outlining strategy in terms of the

observable, cut to the chase and let the employees identify the things that the company is not

going to do. It may be tougher to come up with, but it will contribute much understanding of the

company strategy more rapidly. Various companies use the "good objective laundry list" to avoid

acknowledging that they have not prepared any actual decisions that have achievable targets —

and their employees can see it. It's a very good idea to allow the employees to recognize the

company strategies in clear, understandable language.

Distinct strategy: The strategies should be set the company apart from its competitors. The

strategy will not work if it is just another strategy similar to those in the market. Guarantee the

employees that they can support to put some teeth into company distinction. This is particularly

significant for employees in sales.

Setting limitations: Communicating each and every good objective will not work. Instead, outline

the company strategy in terms of a modest vision with a limited scope of goals. Corporations that

provide more than 10 objectives have a tendency to do far poorer on strategy implementation.

Making objectives concrete and determinable: Imprecise objectives may turn the management

group contented by giving them a chance to have changes on these objectives. Thus, having a

concrete, determinable objectives with deadline dates are superior for rapidly clarifying the

outcomes the company are looking for as well as who is responsible. If the company has

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difficulty with this, it should attempt to find a determinable objective that is close to the half-way

point.

Implementation tactics

Nutt (1986) identified four types of implementation tactics used by managers in making

planned changes by profiling 91 case studies: intervention, participation, persuasion, and edict. A

researcher from Ohio State University examined four tactics that managers utilize to execute

particular decisions in their companies, together with decisions relating to purchasing

equipments, introduction of latest merchandise, and revising workers bonus strategy. Paul Nutt, a

professor and an author, has created an in-depth analysis of the decision making strategies by

managers and top executives of businesses. The author has recognized four decision-

implementation methods: persuasion, edict, intervention and participation (Grabmeier 1998, p.

5). In broad-spectrum, intervention and participation were the most effective methods but they

were also the least used.

The widely used tactic is persuasion, in which managers refer to the benefits of a planned

alteration to control those affected to take on the decision (Grabmeier 1998, p. 5). The key

system for implementation in the edicts tactics (that depends on power and is characterized

by deficiency of participation) is pertaining to orders. Intervention on the other hand, engages

first creating principles or prospect for performance (by making contrast to comparable

organizations), and then determining existing performance next to those principles. After

recognizing the gaps between prospect and recent performance, managers assist to spot practical

and reasonable ways to seal the gap. Lastly is the method of participation. As the name entails,

participation engages employees who are affected to take part in the course of making decisions.

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 Managers make use of various different tactics to implement strategies. To finish, these

are the tactics that can be utilized to verify the implementation as a certainty and to guarantee

that a strategy is implemented accurately. These tactics evaluate the change entirely and locate, if

any, interferences with an employee or the business.

Consensus

Consensus is a mutual practice in which set members nurture and be of the same opinion

to support a decision in the best interest of the entire unit (Wells 2000, p. 11). Consensus is a

conclusion by a group that is fitting to them, but is not undisputed or arrived at by a vote. The

entire members sustain the decision, even with no collective agreement. Consensus is essential

to encourage recognition and possession of the decision and for people to be eager to work on

the way to general goals.

As asserted by several authors, consensus is considered to be significant in determining

differences, endorsing an integrated path for the company, escalating strategic commitment, and

enhancing the successful implementation of a specified strategy (Dess & Priem, 1995). Thus,

consensus is as significant as it influences the process of strategy implementation (Schaap 2012,

p. 110).

Strategic consensus has been known to be practiced among the top, middle and the operating

managers on the principal priorities of the organization and includes a common understanding

and dedication (Floyd and Woolridge 1992). It is mirrored in the decisions in use by the

managers. Disparities in the strategic process give details when consensus is positively or

negatively linked to performance (Woolridge and Floyd 1989). Consensus is a result of the

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strategy process and is a purpose of the character of the procedure of strategic decision making.

NO REFERNCE in LIST

The strategic consensus is comprised of the following elements

1. Scope: is about who play a part in the course of decision making. It can be the associates

of the top management (Hambrick and snow 1977, Thomson 1967); or can broaden further than

the top management to middle and operational level managers (Quinn 1980; Floyd and

Woolridge 1992; Burgelman 1994). No Reference in List !!!

2. Content: is about the subject given attention by the decision makers.

3. Commitment: signify the manager’s participation and enthusiasm to assist with the

implementation of the current decisions

Consensus relies ahead the exact blend of incrementalism and synopticism adopted in the

strategic decision making procedure, which may differ with the phase of the decision process.

In organizations with a mostly synoptic strategic decision procedure, the consensus is of that of

the top management. Consensus on content widen in sequence starting with the consensus on

surroundings, then on objectives and lastly on means. The level of commitment is reliant on the

resemblance between organizational goals and individual goals (Floyd and Woolridge 1992).

Commitment

In particular, workplace commitment is a volitional connection reflecting devotion and

accountability for a target (Klein et al. 2012). NO Reference in List A target refers to the

internal and external performance to a successful implementation of strategies and achieving a

specific goal. Commitment in strategy implementation gives way to action, enthusiasm and

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sticking with efforts to implement company’s preferred strategies (Nykopp 2013, p. 16). When

looking at the actions and practices of employees in implementing strategies, commitment

is interesting because it leads to effort and motivation on behalf of, and sticking with, what one is

committed to (Klein, Molloy & Brinsfield 2012). NO Reference in List

Successful strategic implementation necessitates an enormous commitment from

managers and officials, whether the strategic planning is happening in a unit or in the entire

organization (Olson, Slater & Hult 2005, p. 50). These officers should direct, upkeep, follow-up,

and make the most out of the results of the strategic implementation course. Otherwise, the

strategic implementation route will not succeed.

Lacking the full commitment of the company’s senior managers or executives, strategic planning

should not commence. Participants especially those who will directly work in the process will

feel deceived and misled.

The nine aspects that affect the implementation of a strategy discussed in the literary review are

categorized according to its impact. These aspects are categorized into soft, hard, and mixed

issues. Soft issues (or people-oriented aspects) consist of the people involved in executing the

strategy, the communication procedures in addition to the directly connected implementation

tactics, the agreement about and assurance to the strategy, whereas the hard (or institutional)

issues comprise the organizational structure and the administrative structure. The system in

which the strategy was formed and expressed (strategy formulation) contains hard and soft issues

similarly and is hence measured as a mixed factor (Li, Guohui & Eppler 2008, p. 10). An

example of a mixed factor is the connections amongst diverse divisions and different strategy

stages.

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 Soft Issues

Executors

Soft issues affecting strategy execution involves people or business divisions who carry out

the implementation. These executors includes of top management, middle management, lower

management and non-management (Li, Guohui & Epplern.d, p. 11). Success of strategy

implementation is said to be affected by the performance of people contributing in the course of

implementation activities (Govindarajan, 1989). Below is the chart of the level management with

their corresponding functions.

Source: Management Study Guide 2008.

Top Management

The top management is composed of board of directors, chief executive or chief

financing executives (Management Study Guide 2008). This level in an organization is the

fundamental basis of authority and it directs goals and guidelines for a strategy. The top

managers allot more time on setting up and organizing functions. Upper-level managers are

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under this level management. These managers are the top executives in a business. They depend

on input from middle level managers to establish what direction the business is heading and if

any alterations have to be completed. Upper-level managers generally comprise CEOs, CFOs

and other top officers accountable for developing the corporation's objectives and building the

executive decisions that influence the company's future.

Middle Management

The branch and departmental managers comprise the middle management (Management

Study Guide 2008). They are responsible to the top management for the performance of their

unit. They dedicate more time to managerial and directional tasks. Middle level managers, or

middle managers, are a pace above the lower level managers. They act as mediators between

lower-level managers and the top level inside the management ladder. These managers may still

be concerned in the everyday business operations, but they frequently depend on the input of

lower level managers. Middle level managers are usually general managers or operations

managers, yet they may act as area managers. They are also in charge for transforming the

strategy into small segments that are simple to implement.

Lower Management

Lower level is identified as supervisory stage in a management. The employees in this level

of management are the supervisors, foreman, division administrators, other managers etc

(Management Study Guide 2008). Supervisory managers are those officers whose work is

mainly with personal supervision and leading of operational employees. Thus, they are in charge

with leading their employees in a unit and controlling task of management. The lower-level

managers sometimes called first-level managers are at the base of the managerial ladder. They

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are in touch with non-management staff, regularly acting as supervisors or trade managers, or in

other capabilities that engage the daily operations. Their jobs frequently consist of setting up,

budgeting, human resources activities and corrective actions.

 Hard Issues

Organizational Structure

By means of structure, it is where the framework around which the people is prearranged,

the underpinnings which maintain the group working. It's the operating guide that informs the

employees how the business is positioned collectively and how it works. More particularly,

structure explains how employees are acknowledged, how management is preferred, and how

decisions are prepared (Olson, Slater & Hult 2005, p. 48).

Organizational structure is the means by which tasks are distributed where results are

completed and how work functions are matched. The responsibility of organizational structure is

to assist the performance of companies during the strategy implementation (Ibrahim, et.al. 2012,

p. 956). Organizational structure can be illustrated as formalized, hierarchical, centralized or

specialized. Formalization is the level of administration established in the organization; hierarchy

refers to the organization levels from the lowest to the highest point, thus it is similar to a ladder

of command. Centralization is the degree to which results are completed at the midpoint;

specialization is to the degree of specificity tasks are separated.

Elements to be considered about the organizational structure:

Strategy – The organization structure should be in line or support the strategy. If the organization

aims to be ground-breaking then a hierarchical formation will not work. If on the other hand, the

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strategy is founded on low cost, high capacity delivery; in that case a stiff structure with firm

controls may be the best devise (Noble 1999, p. 232).

Size – The structure should consider the range of the organization. A small business may

possibly be paralyzed by over specialization. In bigger businesses, conversely, there may be

economies of extent that can be achieved by upholding specialist departments and groups. A

huge business has more difficult decision making requirements and various decision making

tasks are apt to be transferred or decentralized.

Environment – When the market environment is random or volatile, then the business requires

being sufficiently flexible to respond.

Controls – The question of what intensity of control is precise for the business should be used.

Several activities call for exceptional controls even as others are more competent when there is a

high level of flexibility.

Incentives – Incentives and rewards should be parallel with the company’s strategy and intention.

When these are uneven, there is a risk that units inside the business turn out to be self-serving.

The elements are just several of the features that organization structures can be assessed

before constructing the company’s actual structure. With every phase of development, the

organization structure needs to be reevaluated and paralleled as required. The list can as well

assist to recognize issues that can possibly be bringing group difficulties.

Administrative Systems

There is a necessity to have a distribution of labor strategy to guarantee that an employee

is in precisely the right position. Organizations must be goal-oriented, and there should be ways

23
of encouragement such as giving incentives to guarantee that the employees are reliable, devoted

and efficient (Qutub, n.d.). Likewise, an administrative system is expected transparent, and

employees are to be in charge and accountable. The administrative systems are to imply all

features of the interrelationships on various levels.

There are three main administrative methods that companies can utilize to deal with ambiguity in

this context: plan of organizational structure (decentralization), plan of control systems (budget

evaluative style) and selection of managers (focus of control)(Li, Guohui & Eppler 2008, p. 36).

 Decentralization

Decentralized organizational structures frequently have some individuals accountable for

building company decisions and operating the business. Decentralized organizations depend on a

team setting at diverse levels in the company (Edwards 2009, p. 48). Employees at every level in

the company may have sovereignty to construct company decisions. Decentralized organizations

make use of individuals with an array of knowledge and familiarity on different business

operations. A broad-based management team helps to guarantee the business has well-informed

directors or executives to handle a range of business conditions. Decentralized organizations can

effort with numerous individuals having diverse opinions on a specific company decisions. As

such, these businesses can encounter problems trying to acquire everybody on the same page

when creating decisions. Thus, strategy implementation is affected.

 Designs of control systems

Control systems are considered as an important component in administrative systems. According

to (Noble, 1999b) the flexibility of control system contribute to strategy implementation. The

management of any business must build up a control system customized to its organization's

24
aims and resources (Guth& MacMillan 1986, p. 318). In designing an effective control system,

there are several general characteristics it should possess. These characteristics are explained as

follows:

 A focus on vital points. For instance, controls are applicable where malfunction cannot be

endured or where costs cannot surpass a definite amount. The critical points consist of all the

parts of an organization's functions that straightforwardly influence the success of its main

operations.

 Integration into recognized processes. Controls must work in synchrony within these

processes and must not block operations.

 Recognition by employees. Employee participation in the design of controls can boost

acceptance.

 Accessibility of information when required. Deadlines, time required in finishing the project,

costs linked with the project, and main concern needs are visible in these criteria. Costs are

normally credited to time inadequacies or failures.

 Economic practicability. Effective control systems respond to questions such as, “How much

are the expenditures? or How much is the return on investment? In short, contrast of the costs

to the benefits guarantees that the profits gained on controls prevail over the costs.

 Accuracy. Effective control systems present accurate information that's functional,

dependable, legitimate, and balanced.

 Comprehensibility. Controls have to be uncomplicated and simple to identify with.

Selection of managers (focus of control)

25
 A chain of studies over the last 20 years has established an affirmative link between the

participation of managers specifically those of from the middle level in strategic planning and

improved organizational performance (Guth & MacMillan 1986, p. 318). The breakthrough that

superior performance was linked with middle managers being drawn in the idea as well as the

doing led to an important study which recognized four ways that middle managers influenced

strategy. Unexpectedly, these studies found that even though middle manager participation

contributed to better understanding of and dedication to the strategy, the impact to strategy

implementation is not that felt but rather in the decision making. Thus, this is another reason why

the selection of managers is categorized as a hard issue with regards to strategy implementation.

 Mixed Issues

Connections among diverse departments and strategy levels

Numerous research considers institutional relationships among diverse departments and

strategy levels as a major factor that influences the result of strategy implementation. The

levels or strategy are corporate strategy, business strategy and operational strategy.

Corporate-level strategy deals with the general scale of an organization. Corporate-level

strategy matters comprise environmental extent, variety of products or services, possession of

new businesses, and how resources are distributed between the diverse essentials of the

organization (Gluck 1985, p. 10). NO Reference in List To be briefed about corporate-level

strategy is significant: determining an array of businesses to take in is the starting point of

strategic activities such as implementation. Business-level strategy is deals with the approach by

which a business should win in its respective marketplace; given this reason, business-level

strategy is frequently referred as competitive strategy. And lastly, operational level strategies

26
deal with how the divisions of an organization convey successfully the corporate and business

level strategies with regards to its resources, processes and employees. Thus, the connections and

relationships between the people from different departments and strategy levels have influence

on strategy implementation. The impact of these mixed issues on the implementation varies on

how conflicts take place in a specific strategy level.

Other factors affecting strategy implementation

Frequently Used Environmental Strategizing Methods

Waterman et al. (1980) proposed an abstract framework to support in the course of strategy

implementation. At the same time as other authors such as Porter (1980), have highlighted the

significance of hard issues such as strategy, structure and systems which are previously

discussed, they recognized four supplementary soft issues or factors namely shared values,

skills, style and staff. Below is the diagram of the Mckinsey’s 7S which illustrates the mentioned

issues (Waterman, et.al. 1980, p. 14).

27
Basically, the model depicts that any organization can be best expressed by the seven

interconnected elements as shown on the diagram. These elements were grouped according to the

level of impact or influence.

HARD ISSUES SOFT ISSUES

Strategy Shared Values
Structures Skills
System Style
  Staff
 Strategy: the map developed to uphold and put up competitive gain over the competition.

 Structure: the system by which the organization is ordered.

 Systems: the day by day activities that workers employ in to get the work done.

 Shared Values: when the model was first created, these are the inner values of the business

that are indicated in the company culture and the universal work ethic.

 Style: the technique of leadership implemented.

 Staff: the workforce and their all-purpose capabilities.

28
 Skills: the concrete proficiencies and competencies of the employees working for the

business.

"Hard" elements are less complicated to characterize or classify and management can

straightforwardly manipulate them: These are strategy reports; organization structures and

reporting outlines and proper processes and IT systems. In contrast, soft elements can be more

complicated to illustrate, less physical and more subjective by culture. On the other hand, these

soft elements are as vital as the hard elements if the business will be successful.

PESTLE Analysis

PESTLE is an acronym which in its long-drawn-out structure designates P for Political, E for

Economic, S for Social, T for Technological, L for Legal and E for Environmental. It offers a

bird’s eye sight of the entire setting from various diverse viewpoint that one desires to ensure and

keep a track of as considering on a definite idea/plan.

PESTLE analysis, which is occasionally called as PEST analysis is a model in marketing

philosophies. Furthermore, this model is used as a device by corporations across the globe to

observe the surroundings they’re working in or are scheduling to launch a latest

venture/product/service etc.

It may be so, that the value of every aspect may be diverse to different types of industries, but it

is very important to whichever strategy a company desires to develop that they carry out the

PESTLE analysis as it shapes a much more broad adaptation of the SWOT analysis.

It is very vital for one to be aware of the strength of every letter in the PESTLE.

29
Political: These elements conclude the level to which a government may control the market or a

particular industry. For instance, a government may enforce a new tax due to which total revenue

producing structures of companies might transform. Political factors consist of tax policies,

economic policy, etc. that a government may charge within the fiscal year and it may influence

the business setting (economic setting) to a great level.

Economic: These elements verify an economy’s performance that straightforwardly influences a

business and have echoing long term outcomes. For instance, a climb in the inflation rate of

several economies would shape the mode companies’ price their goods and services. In addition,

it would influence the purchasing power of a purchaser and alter demand/supply forms for that

economy. Economic factors consist of inflation and interest rates, forex rates, financial growth

outlines etc. It’s also in relation for the foreign direct investment relying on particular industries

that ere going through this study.

Social: These elements examine the social surroundings of the market, and measure determinants

such as literary styles, demographics, population methods etc. An instance for this can be trade

trends for countries such as the United States where there is high demand throughout the Holiday

season.

Technological: These elements relate to improvements in technology that may influence the

operations of the business and the market support or disfavor. This pertains to computerization,

research and development and the level of technological responsiveness that a market holds.

Legal: These elements have equal external and internal areas. There are definite laws that

influence the business setting in a particular country although there are certain policies that

businesses uphold for themselves. Legal investigations take into consideration both of these

30
viewpoints and then plans out the strategies in light of these legislations. For illustration,

consumer regulations, security standards, employment laws etc.

Environmental: These elements consist of all those that influence or are shaped by the immediate

environment. This feature of the PESTLE is vital for particular industries predominantly for

instance; tourism, farming, cultivation etc. Aspects of a industry environmental analysis consist

of but are not restricted to climate, weather, environmental setting, worldwide changes in

climate, ecological offsets etc.

SWOT Analysis

SWOT means Strengths, Weaknesses, Opportunities and Threats. It is a technique of

summarizing the present situation of a business and serving to develop a preparation for the

future, one that makes use of the presented strengths, remedying presented weaknesses, taking

advantage of opportunities and securing against threats.

Between 60’s and 70’s, Albert Humphrey is believed to have created this strategic planning

device by means of data from the top corporations in the United States at that time. A SWOT

Analysis is a device which permits its users to come across at the course a business or

organization may desire to shift towards in the future. A SWOT Analysis is a functional tool,

which in combination with others can assist in composing knowledgeable decisions.

1. Strengths – Those aspects that contribute an organization to be more competitive than its

competitors. Strengths are what the business possesses that is accessible to be used in

accomplishing its performance goals. Strengths may contain, for instance, the information,

background, and qualifications of the organization’s employees. Strengths might as well consist

31
of physical assets, such as funds, tools, patents, and other important resources inside the

company.

2. Weaknesses – those recognized areas inside a business that are supposed as limits or weak

performance that are treated as difficulties in the course to attaining the company’s aims and

objectives. For these particular areas, the business is obviously seen as being in a second-rate

situation in relation to its competition. Several examples might consist of deficiency in expertise,

weak level of technology development, inadequate resources, and so on.

3. Opportunities – any marketplace movement or circumstances that might have a positive

impact on the company’s future consequences, in terms of improved demand for its goods or

services. The probable effect of the business taking benefit of these opportunities would be to

improve its general competitive situation. As acknowledged by selling efforts, opportunities may

branch from development of the wide-ranging market in which the business competes. Decisive

to recognizing the opportunity is establishing the timing drawn in. For instance, is there a

prospect of opportunity or is it one that is current?

4. Threats – those market movements or situations that could possibly have a harmful impact on

the business’s prospects, in that way lessening considerably its competitive status in the

marketplace. Threats consist of elements external to the business and past its control. Cases of

threats would consist of a main competitor irrationally reducing its prices, a relentless economic

downturn, unbearable increase in contractor prices, new government laws making huge impact

on the market, and so on. Identifying possible threats, and conveying their likely possibility,

should direct to creating contingency plans that will counterbalance the risk to a company’s

general market position.

32
The main steps in performing a SWOT analysis contain:

1. Intensive study on records of strengths, weaknesses, opportunities and threats (focusing to

keep the priority on internal strengths and weaknesses and external opportunities and threats).

2. Acquiring the laundry-list of information inside each class and decrease them to the top 5 to

10 ideas (per class).

3. Evaluate each class separately and talk about each of these ideas and the possible inferences to

the business.

4. Consider that the design with SWOT analysis is to achieve a better understanding of how the

business can communicate to its external surroundings. As such, the subsequent step is to come

across the internal strengths and weaknesses of the business and observe how they relay to the

opportunities and threats outside to the business.

5. The final pace is to come across at the subsequent parts:

a. Those elements that signify both strengths of the business and opportunities in the outside

surroundings. This symbolizes a possible area for development.

b. Those elements that stand for weaknesses of the business and threats in the outside

surroundings. This corresponds to an area that wishes to be addressed.

By utilizing the quadrant structure, as shown in the illustration below, the company’s strategies

start to obtain shape. The outline of how the SWOT quadrants work is below the illustration.

    Internal Factors

33
   Strengths Weaknesses
    1 2
  Opportunities Internal Strengths Internal Weaknesses
    Matched with Relative to
External
Factors   External Opportunities External Opportunities
    3 4
  Threats Internal Strengths Internal Weaknesses
    Matched with Relative to
    External Threats External Threats

1st Quadrant – Internal strengths corresponding to external opportunities

This is the best equivalent given that it’s the effect of the best fit between the company’s

resources and the competitive opportunities in the outside surroundings. The approach for this

quadrant would be to discover ways to guard and strengthen and, probably, to expand these

internal strengths.

2nd Quadrant – Internal weaknesses parallel to external opportunities

The all-purpose strategic reaction for this quadrant is to effort to make the best of a critical

condition – i.e., what is the top trade-off between creating the required changes to make the

weakness to strength and letting a portion of share in the market given to a competitor.

3rd Quadrant – Internal strengths corresponding to external threats

The strategic problem for this quadrant is building opportunities from the supposed threats,

which will possibly engage a key change in the company’s strategic goals. The alternative choice

is to take part in defense and probably locate more rewarding strategies in the other quadrants.

4th Quadrant 4 – Internal weaknesses parallel to external threats

34
This quadrant is visibly the worst amongst the quadrants. Reliant on the specific condition, the

array of responses might contain a practical one (if the company’s survival is at risk), or the more

defensive dissociate to be able to focus on more potential strategies in other quadrants.

Porter’s Five Model

The creator of the model, Professor Michael Porter from the Harvard University, has recognized

five forces that find out the position of competitiveness in a market. The forces also control the

productivity of companies previously been in the industry. These five forces are illustrated in the

diagram below.

Five Forces model assumes that there are five essential forces that establish competitive power in

an industry position. Below are further information about Porter’s model.

1. Supplier Power: In this force, the company can review how simple it is for suppliers to

manipulate the prices. This is determined by the quantity of suppliers of every key input, the

35
distinctiveness of their merchandise or service, their strength and power over the customers, the

price of switching from one to another, etc. The smaller number the supplier selections that an

organization has, and the more the company requires suppliers' assistance, the more influential

these suppliers become.

2. Buyer Power: In this force the company assesses itself how uncomplicated it is for customers

to make prices down. Once more, this is determined by the quantity of customers, the value of

each individual purchaser to the company, the price to them of shifting from the company’s

merchandise and services to those of from the competitors, and so on. If the company deals with

a small number of dominant buyers, then the organization are often capable to order terms to the

company.

3. Competitive Rivalry: What is imperative in this force is the quantity and ability of the

competitors. If the company has numerous competitors, and they present similarly attractive

merchandise and services, then the company most likely has little authority in the circumstances,

since suppliers and buyers will go somewhere else if they don't get a superior deal from the

company. Alternatively, if no one else can provide the services or merchandise the company has,

then the firm can frequently have remarkable strength.

4. Threat of Substitution: This is affected by the ability of your customers to find a different way

of doing what you do – for example, if you supply a unique software product that automates an

important process, people may substitute by doing the process manually or by outsourcing it. If

substitution is easy and substitution is viable, then this weakens your power.

5. Threat of New Entry: Power is as well moved by the skill of people to come into the

company’s market. If it outlays little in time or capital to go into the company’s market and

36
compete successfully, if there are little economies of scale in position, or if the firm have little

defense for the major technologies, then new competitors can rapidly come in the market and

deteriorate the firm’s situation. If the firm has well-built and tough barriers to admission, then

the company can protect a favorable spot and obtain fair advantage of it.

Benefits on the use of Porter’s 5 Forces

1. The company’s management achieves awareness of several of the most important forces that

form the firm’s strategy to carry on and succeed.

2. Understanding of the five forces sets aside some tension relief because of compact vagueness

and execution of proper risk management.

3. Recognizing Supplier Power will offer the firm the necessity to look for new suppliers or

transform the firm’s relationship with its supplier to lessen risk.

4. When the Buyer Power is high, this can verify possible weaknesses in the customer

connection management, merchandise & service offerings, or the firm’s existing customer base.

The BCG Matrix

The BCG (for Boston Consulting Group) matrix systematizes companies along with two scopes

—company growth rate and market share. Company growth rate illustrates to how quickly the

whole industry is rising. Market share describes whether a company unit has a bigger or smaller

37
share than rivals. The mixtures of high and low market share and company growth offers four

groupings for a business portfolio.

The star has a huge market share in a quickly rising trade. The star is significant for the reason

that it has supplementary development potential, and benefits should be cultivated into this

industry as investment for potential development and profits. The star is observable and

attractive and will produce profits and a constructive cash flow even as the business grows and

market growth is time-consuming

The cash cow subsists in a full-grown, slow-growth commerce but is a leading industry in the

commerce, with a huge market share. For the reason that serious investments in promotion and

38
plant extension are no longer compulsory, the business earns an affirmative cash flow. It can get

profit from the cash cow to spend in other, riskier commerce.

The question mark is present in a new, quickly rising industry but has only a little market share.

The question mark industry is uncertain: it could turn out to be a star, or it could be unsuccessful

The corporation can spend the money generated from cash cows in question marks with the

objective of cultivating them into potential stars. The dog is a weak part. It has only a little share

of a sluggish-growth market. The dog offers small earnings for the company and may be subject

to divestment or bankruptcy if turnaround is not achievable.

The circles in the illustration symbolize the company portfolio for a theoretical firm. Circle size

stands for the relative mass of every business in the company’s assortment. Most entities have

businesses in excess of one quadrant, thus on behalf of diverse market shares and growth rates.

Completely re-write this sections… I do not need to explain what SWOT or Potters 5 and

PESTLE are !!!! I need a much more academic review of these strategy tools, not 10 pages and

2500 words of wallpaper to get to the words quota!!!! Give a brief description of these strategy

tools and analyze whether implementation strategy, communication and administration tools are

incorporated or not.

Organizational Culture

Organizational culture refers to design of shared fundamental conventions that the set

learned as it resolved its difficulties of outside adaptation and internal incorporation that has

functioned well enough to be measured effective and, consequently, to be imparted to new

members as the right way to observe, contemplate, and feel in relation to those difficulties

(Schein 1992, p. 12).

39
 Based on the research of Robert E. Quinn and Kim S. Cameron at the University of

Michigan at Ann Arbor, there are four kinds of organizational culture: Family-oriented or clan

culture, Adhocracy, Market, and Hierarchy (Cameron & Quinn 1999, p. 23).

Clan oriented cultures are family-like, with an emphasis on mentoring, fostering, and “doing the

work together.” Thus, similar to a family, cooperation is evident in this type of organizational

culture.

Adhocracy oriented cultures are active and commercial, with an emphasis on risk-taking,

improvement, and “doing the work as first priority.” Hence, the objective of this culture is to

finish the target task first.

Market oriented cultures are concerned with the company results, with a concentration on

competition, accomplishment, and “success in the job done.” Thus, this culture focuses on

entrepreneurial goals or it is a profit-based culture.

Hierarchy oriented cultures are organized and measured, with a concentration on proficiency,

constancy and “doing the job accurately.” Thus, the objective of this culture is to finish the task

following accurately the standards or rules of the company.

Uncertainty

It was obvious that in actual companies, the only period those middle managers have the detailed

idea concerning the strategy is nearer to execution time. This basically means that they have not

had adequate time to connect with it and as well to have their issues addressed. As mentioned by

McKinley and Scherer (2000), NO Reference in List this generally gives the middle managers

the sense of being uncertain about how best to go on.

Below are the elements recognized as ways to lessen the uncertainty (Okumus 2001, p. 335):

 taking part in strategy formulation;

40
  senior management support

 enhanced interaction system

 pre-implementation conference with their employees;

 clarity with the roles played throughout implementation stage;

Other authors such as Schwenk (1984) NO Reference in List asserted a dissimilar analysis with

regards to the concept of uncertainty as being a channel that would give confidence on

modernization and flexibility. He mentioned that creative pressure leads the middle managers to

discover methods to deal with which in several instances may be revolutionary

Strategy Implementation Practices

As discussed in the previous literary reviews, implementation is a major process, that there are

vital skills exhibited in practices that companies can discover and apply, so that investments on

these business’ implementation skills can pay remarkable benefits for the succeeding years

(Brown & Pope 2011, p. 3). The focus of this section highlights the best and widely used

practices in implementation and present several lessons learned from executives and companies

that implement their strategies very well.

Practices in strategy are characterized as that which people employ with, such as

strategic planning, devices of strategy study, and occasions or event such as strategy away-days.

Practices are as well classified as what people in reality do in regards to strategy, such

as people‘s particular actions and habits (Johnson et al. 2007) NO Reference in List. In the same

way to the wider subject of strategic management, practice is strategy implementation comprise

prescriptive and descriptive study: it deals both with model action or habits, and concrete,

particular actions and habits.

41
 According to the research conducted by including important third-party partners is one of

the best practices usually applied in implementation of strategy. The participation of important

business partners is not just about gaining profit or avoiding conflicts, even though there can be

conflicts whenever a company proposes an unusual detail of a strategy on its major suppliers and

sales partners. It entails assurance that procedures tie appropriately when they have to do so. It

involves assurance that each side of a business affiliation understands their own responsibilities

(Brown & Pope 2011, p. 5). It involves assurance that the two firms are cooperating frequently

enough and at the exact places to get in advance of conflicts and opportunities. It involves having

the assurance that planning and implementation is paying attention on the future, not looking in

the rear view mirror. This practice has been exercised by Vice President of Mitsubishi Electric

Automotive America, Mike De Lano. NO Reference in List

Another practice usually exercised in strategy implementation is the creation a service benefits

through implementation skills. In topical years of research, the discovered that several instances

in which an ability to “take time out” makes a helpful service benefits (Brown & Pope 2011, p.

5). Those companies that come up with methods to take time out can form attraction for their

customers. Some construction companies exercise this practice. Taking time out on construction

projects or safeguarding actions constantly forms values and shows a company’s implementation

competencies. The benefit to the buyer of “taking time out” is a financial advantage. It’s one that

permits customers to notice how they are better off, and they have no problem doing the

computation. Thus, the company gain strong strategy implementation competency. Companies

with a well-built implementation competency are the ones that are capable to convey time-saving

contributions to their customers and contend in the market as an outcome.

42
 Lastly, another widely used yet efficient practice in strategy implementation is referred to

as defensive planning. The defensive planning refers to the anticipation of future conflicts and

getting rid of these possible problems (Brown & Pope 2011, p. 11). Companies that are very

successful at implementing strategy do their best to consider all the potential drawbacks, to spot

the “killer variables” that possibly will disrupt the strategy implementation. When the strategy

implementation group has become familiar and has in-depth analysis on the accurate processes

and has the correct tools, it is prepared to deal with the unforeseen, and thus making it less

possible that the conflict will occur.

The mentioned concepts are the commonly used practices in implementing strategies in

an organization. These practices are somehow in line with the basic theories in strategy

management. The first practice discussed which pertains to the use of key third party partners

can be applied in middle management. As a general knowledge, third parties in business

transactions or projects are those individual or other entities who is not a direct party to a

contract, but who in some way has an interest in or is affected by the decisions in it. NO

Reference in List

Strategy Implementation Practices By Middle Management Reflecting Existing Implementation

Theory

In most businesses it is noticeable that middle managers are concerned with strategy

implementation more than formulation, and however there is a case for their participation

in formulation (Wai-Kwong et al., 2001; Woolridge and Floyd, 1990). NO Reference in List

Their involvement contributes a big part to higher degrees of performance as a group. Much of

literature has been discussed on the subject of difficulties encountered by middle managers

43
in implementing strategy. Senior management has inclined to have their attention on strategy

formulation and transfer the decision of how to implement it to middle management. As

asserted by McKinley and Scherer (2000), NO Reference in List this may give a consequence

in managers to feel uncertain about the best way of action to pursue. This uncertainty can lead to

ineffective implementation of strategy.

Various reasons have triggered for the failure of middle management to implement strategy

effectively. Miniace and Falter (1996) NO Reference in List stated that communication has

been weak most commonly between senior managers and middle managers. Senior management

is likely to keep hold to information awaiting on the time to implement the strategy. This

does not give the middle managers to have adequate time to sustain the strategy and have

all their issues addressed on proper time.

For the reason that they have not completely bought into the strategy, they put extra effort to

persuade their employees to support the latest strategy. Bott and Hill (1994) NO Reference in

List assert that senior management has to produce sufficient supporters in the position of middle

management to be able to drive implementation further on a daily basis.

Methodology

This segment highlights how the actual research for this dissertation was conducted. Emphasized

also in this section are the application of literary review and the kind of methods used to collect

information from samples representing a population, analyze it and have a precise understanding

on the issues of the strategy implementation in an organization.

Research Method and Design Appropriateness

44
 There are two factors that affect the choice of the researcher whether to use qualitative or

quantitative method in the study according to scholars. These are the extent of the researcher’s

familiarity towards a particular know about the particular topic and his position regarding human

social behavior. Hence, the selection of a quantitative approach is perceived suitable due to the

fact that it could provide a representation of the participants’ lived experiences (Abusabha and

Woelfel 2003). NO Reference in List This research design allows the researcher to gather,

analyze and report biased-free information.

This method was used in order to let the researcher see the recurring benefits and

problems that are encountered in strategy implementation. This is also a good way to develop a

pattern to their answers. In addition graphs and figures will also be provided in order to visually

see the trends and patterns of answers and behaviors by the respondents.

Population and Sampling

After careful and detailed analysis of the ICA Working Paper of February 2008 titled;

Making Strategy Work: A Literature Review on the Factors influencing Strategy Implementation

by Yang Li, Sun Guohui and Martin J. Eppler, a questionnaire will be designed using

aspect/conclusions/findings from their research, and shall include both open and closed (yes/no)

questions. The questions will be designed to collect empirical data on the practicalities

surrounding strategy implementation by General/Middle managers and will be distributed to a

group of approximately 50-75 people working in diverse industries in the United Arab Emirates

region. 

The questionnaire will be designed in a way that an interviewee should be able to be

complete the questionnaire within 10 minutes. Empirical data that is collected from these

45
questionnaires will be analyzed and tested against the findings in the working paper of Li et.al.

From there conclusions can be drawn that might aid future research on the subject. 

The method of questionnaires is selected as it allows for the interviewees to quickly

provide data without taking too much from their valuable (working) time, thus potentially

increasing response figures and quantity of collected data. Furthermore, a larger sample will

allow for a more accurate analysis of the data collected. Other than the journals, papers and

articles referenced in the aforementioned working paper of Li et.al (2008), the dissertation shall

use data and referencing from journals and academic papers on strategic environmental analysis,

strategy implementation as well as possible other research papers and journals encompassing

strategy implementation by General/Middle Management staff.

The following are the questions asked on the interviewees:

1. Do you work in the Private or Public Sector?

2. How large is the organization you currently work for?

3. Please identify the current organizational level you work in

4. How long have you been working in your current organizational level?

5. Are you involved in developing any kind of strategies?

6. Does your organization consult you for input when developing strategies?

7. Which method of communication does your organization use for the introduction of new

strategies?

8. When a new strategy is introduced to you, how do you rate the level of communication?

9. When a new strategy is introduced to you, how do you rate the level of commitment from the

management?

46
10. How many strategies have been introduced to you over the years?

11. Which approach was commonly used when a strategy was introduced to you

12. How many strategies have you seen successfully implemented?

13. Upon strategy introduction, are clear responsibilities and task lists distributed?

14. Did your management follow up on the strategy implementation progress?

15. Does your management conduct a final strategy implementation review meeting?

16. Have you ever been involved in a strategy that would negatively impact you or your

department? (if yes please briefly explain)

With supplementary questions asking the respondents’ experience on his/ her company’s:

1. Strategy formulation.

2. Strategy introduction.

3. Strategy implementation.

4. New Strategies in General

Li’s et.al. 2008 literature review span academic papers and journals published over a 20 year

period. As a result the data of hundreds of interviewees is indirectly involved in their paper. It is

very likely that the overall demography of these interviewees was very diverse in terms of

religious, ethnic and cultural background as well as age groups. Interestingly, the UAE provides

a demographic background of the interviewees for my research not dissimilar to that of the paper

of Li’s et.al. (2008). The United Arab Emirates is hosts to over 110 nationalities of all ages, with

a vast spread in religious, cultural and ethnic backgrounds. This allows for the collected

empirical data from my questionnaire to be reviewed and analyzed against the data collected by

Li et.al (2008) without any predisposition.

47
Assumptions

The researcher very much relied on the truthfulness and cooperation of the interviewees

concerning the information they present throughout interview sessions. One of the most

important assumptions of this study is that the philosophies or theories collected from the review

of related literature on the subject of strategy implementation will match with the recurring

themes collected from the survey. These themes may be about the behavior of the managers or

employees in the course of implementation phase, the factors contributing to the success of

strategy implementation in their operations, the benefits and problems the companies and

employees face in changing usual implementation practices and the effectiveness of theoretical

principles being applied in actual implementation process.

Findings and Analysis

This chapter includes the results and analysis of the findings and their contextual interpretation,

presented in narrative form to ensure that individual voices and actual words of the participants

are included.

Based on the overall answers of the respondents, 85% of them work in private

organizations whereas 15% work for public sector. The objective of this question is to assess the

nature or environment of the respondents’ occupation. The nature of private and public sectors

differ in many aspects such as organizational culture which is another factor influencing the

strategy implementation of a company. As majority of the respondents are working in a private

sector, the culture they got used to is anticipated to be more of Adhocracy oriented culture,

Market, and Hierarchy culture. As discussed in the literature review, adhocracy oriented cultures

refers to the culture of prioritizing the work first whereas the market oriented cultures prioritizes

48
the acquisition of company profits and lastly, hierarchy culture is focused on the precise working

of a task. While in the public sector, it is more concentrated on family or clan oriented cultures.

So consequently, most of the respondents focus on just doing the job.

More than half of the respondents are found out to be working in a small-sized

organization. The size of the organization also has an impact to its employees and company

strategy implementation. There are benefits and drawbacks in working in small organizations

(Nutt 1985, p. 235). Small organizations are those entities with more than 500 workers on board.

In small sized organizations, a single bad decision by upper management is less probable to place

the whole company at danger of failing. On the other hand, the participation of the all employees

are only limited to their assigned tasks. Thus as an analysis, majority of the respondents are only

working on their specific tasks and few of them are really in cooperation with company

strategies. Hence, these respondents are working for operations only and not contributing so

much in the decision making process.

Only 8% of the respondents are working in the top level management, 32% from the

middle level and 60% belongs to the lower level management. As discussed in the review of

literature, lower level management is comprised of supervisors, foreman, division administrators,

and other managers. More than half of these respondents are working at their respective

organizational levels for two years. Thus, the movement or change in their corresponding

organizational levels is not rapid.

65% of the respondents said that they are involved in any of their company strategy. Half

of these respondents involved in company strategy confirmed that their opinions are gathered by

company bosses for strategy implementation. Hence, it is evident that not every one of them are

49
directly involved or has a strong influence on strategy implementation which is another factor

why strategy implementation fail as discussed in the review of related literature.

Majority of the respondents answered that new strategies are communicated by the

organization by company meetings or conferences. When a new strategy is introduced to its key

employees,75% of the interviewees are highly satisfied with the level of communication

practiced by the company. 15% are neutral and 10% are dissatisfied. As discussed in the review

of literature, there are effective ways in communicating the company strategy. As an analysis,

75% of these respondents may belong to a management following such ways in strategy

communication to employees. Thus these 75% of respondents are well informed and familiar

with regards to company strategies.

When a new strategy is introduced to employees, 70% of the interviewees are satisfied with the

level of commitment from the management, 20% are neutral and 10% felt dissatisfied with the

level of commitment shown by management. As discussed in the literary review, commitment of

the management is a factor that influences the strategy implementation process.

Majority of the respondents said that their company introduced strategy 4 times in a year, and the

rest of the respondents answered twice a year. Thus, companies are usually making strategies in

a quarterly basis. Among these strategies, the ratio of success is 3 out of 4. More than half of the

respondents are affirmative to responsibility and task distribution upon strategy introduction.

Less than 40% of the respondents are affirmative that their company management follows up on

the strategy implementation progress. 80% of the respondents said that their management

conducts a final strategy implementation review meeting.

50
Similar to the conducted survey are the concepts being evaluated in the following research done

by other scholars. The researchers study summarized several research made by reliable authors

for a very long period of time. The following table highlights the problems in strategy

implementation. Dots or bullets are placed in the corresponding problems as the authors

mentioned them on their studies. Where is the Referrence for this overview. Certainly you

got it from somewhere.

Authors and work Time Organization Organization Resources Leadership Uncontrollable

(chronological order) structure culture external factors
Waterman RH, Peters TJ, Phillips ● ● ●
JR (1980): Structure Is not
organization
Wernham R (1984): Bridging the ● ●
Awful Gap between Strategy and
Action
Alexander L. (1985): ● ● ● ● ●
Successfully implementing
strategic decision
Eisenstat R. (1993): ● ● ●
Implementing strategy:
developing a partnership for
change
Wessel J. (1993): The strategic ● ● ●
human resource management
process in practice
Schmidt J. (1994): The case of ●
the sales-driven company
Sandelands E. (1994): All talk ●
and no action? Perish the thought
Miller S (1997): Implementing ● ● ●
Strategic Decisions: Four key
Success Factors
Al-Ghamdi, S. (1998): Obstacles ● ● ● ●
to successful implementation of
strategic decisions
Beer, M., Eisenstat R.A. (2000): ● ● ●
The silent killers of strategy
implementation and learning
Allio M.K. (2005): A short, ● ●
practical guide to implementing
strategy
Hrebiniak L.G. (2006): Obstacles ● ● ● ●
to effective strategy
implementation
Kalali, N.S., et al. (2011): Why ● ● ● ●
does strategic plans
implementation fail? A study in

51
 the health service sector of Iran

More repeatedly cited problems are associated to organizational structure, the deficiency of

resources and leadership difficulties. In the review of related literature, the main five categories

cited in the table above denotes to internal issues, while the sixth category demonstrate the

influence of external issues.

Challenges experienced

Despite the fact that the similar management principles of precision, proportionality and fairness

are well-matched with the practices in actual corporations, several managers and executives

ignored them and the employees they manage, rather than creating dealings with readers. A

challenge experienced by most of the strategy executors is also the time constraint. There are

many more challenges faced by the company such as management of funds and other exterior

problems that only occur in the process of implementation only.

On the other hand, the main challenge experienced by the researcher in the course of this study is

the analysis of the conducted research. This challenge was resolved by interpreting the results in

accordance with the review of literature and also with the use research made by other

researchers. The results of survey conducted by the researcher were compared to the work of and

similarities were assessed.

Although numerous academic papers and journals can be found on environmental strategy, it is

surprising to find that so little has been published on the subject of strategy implementation by

General and Middle management. This restricted access to academic publishing on the subject

can provide a potential obstacle to my research in my chosen area. However, rather than seeing it

52
as a deterrent, it can also provide an opportunity to further develop academic research on the

subject.

A possible impediment to the research could be not receiving enough feedback on the

questionnaire and thus having a very small sample for analysis. It is therefore imperative to

design a questionnaire format that is very easy and quickly to complete reducing “no-response”

figures.

A potential challenge to the research could be the “weighted value” variance between both data

volumes. The findings in the working paper of Li et.al (2008) is based on papers and journals

that have collected data from hundreds of executive and senior managers from all over the world

over a time span of 20 years, whilst the research in this dissertation will involve some 50 people

in one country at the present time. However, even if only partial correlation or disconnect

between both data’s can be identified; the research can provide an interesting insight on the

challenges of strategy implementation.

Limitations of the Study

The scope of this examination focuses only on the factors affecting strategy implementation. As

given in the literary review are four elements on the process of strategic management:

environmental scanning, strategy formulation, strategy implementation and strategy evaluation.

The study is limited only on the strategy implementation and its subtopics. In the survey

conducted by the researcher, the questions are intended to evaluate the respondents’ overall

assessment on his/her company highlighting only the aspects involved in strategy

implementation.

Summary

53
 Strategy implementation is significant but complicated for the reason that implementation

activities need a longer period of time compared to formulation stage. Implementation involves a

larger number of people and heavier task difficulty, and has a must for chronological and

synchronized thinking on side of implementation managers (hrebiniak and Joyce 2001). NO

Reference in List The area of implementation is an ignored and disregarded part in strategic

management in general. Published studies highlights on strategy formulation rather than the

implementation process. Strategy formulation and implementation are matching and rationally

distinguishable fields of strategic management and element of the general process of planning

and executing.

The concept of strategy was discussed using Mintzbergs’ 5 P’s which are plan, perspective, ploy,

position, and pattern. Levels of strategy are corporate level, business level and functional level.

There are four elements on the process of strategic management: environmental scanning,

strategy formulation, strategy implementation and strategy evaluation (Viseras, Baines &

Sweeney 2005, p. 153). All of which are briefly discussed except for the strategy implementation

which was tackled in detail given that it is the main focus of this dissertation.

The process of strategy implementation discussed are (1) Assessment of the strategic plan. (2)

Establishment of vision for strategy implementation. (3) Selection of group members to assist in

implementation of strategic plan. (4) Setting up of meetings for progress reports discussion. (5)

Involvement of the upper management if needed.

There are nine issues affecting the strategy implementation which can be divided into soft, hard,

and mixed factors. These nine issues were gathered from various researchers and authors and

further analyzed. The issues are: strategy formulation, connections among diverse departments

54
and strategy levels, executors which are classified into top, middle and lower level of

management, communication, implementation tactics, consensus, commitment, organizational

structure and administrative systems. The strategic consensus is comprised of elements such as

scope, content, and commitment or manager’s participation. Elements to be considered on the

organizational structure are strategy, size, environment, controls, and incentives.

The mentioned supplementary ways that will facilitate in communicating a company strategy

more effectively are by providing an extensive list of upright objectives, distinct strategy, setting

limitations, and making objectives concrete and determinable.

Frequently used environmental strategizing methods discussed are Mckinsey’s 7S Model, Porter

5 Forces, SWOT Analysis, BCG Matrix and PESTEL Model. Under the McKinsey’s 7S Model,

the hard issues were enumerated as strategy, structures and systems while soft issues are shared

values, skills, styles, and staff. PESTLE model is discussed as a mnemonic of P for Political, E

for Economic, S for Social, T for Technological, L for Legal and E for Environmental factors.

SWOT analysis stands for the company’s Strengths, weaknesses, opportunities and threats. The

discussion illustrated the relevant quadrant explaining the relations of the Strengths, weaknesses,

opportunities and threats. The quadrant are explained as: 1st Quadrant – Internal strengths

corresponding to external opportunities, 2nd Quadrant – Internal weaknesses parallel to external

opportunities, 3rd Quadrant – Internal strengths corresponding to external threats and 4th Quadrant

– Internal weaknesses parallel to external threats. And the Porter’s 5 forces are composed of

Supplier Power, Buyer Power, Competitive Rivalry, Threat of Substitution and Threat of New

Entry. The BCG (for Boston Consulting Group) matrix includes the representation of Stars, cash

cows, dog and question marks which corresponds to different elements in market.

55
Another factor influencing the strategy management is the organizational cultures which are

classified into Clan oriented cultures, Adhocracy oriented cultures, Market oriented cultures and

Hierarchy oriented cultures. And lastly is the uncertainty.

Strategy implementation practices includes the by use of important third-party partners, creation

of a service benefits through implementation skills by “taking time out”, lastly is the defensive

planning. All of these aspects can be key factors resulting to success or failure depending on

actual circumstances. Just repeating a lot of Bla-Bla..!!!! please condence and make an

academic critical analys point of this.

Based on the conducted research and survey, the theoretical points have supported the proposal

that most of the companies have the idea on how to implement the strategies but fail to

successfully do so given that theories are easily understood than applied. The consequence is that

most of the firms fail to achieve the pre-set goals and objectives and the strategies are wasted. On

the conclusion section, the researcher has provided some insights on what went wrong on the

strategies and managements fault on it. While on the recommendation part, the researcher has

included suggestions to possible companies that may benefit on these readings with regards to

their strategy management and implementation.

Implications of the Study

The findings of this study have come up with essential implications for potential future

practice. The research findings are mainly vital in accepting the kinds of disputes experienced,

and insights of difficulties encountered in strategy implementation in a company. The outcomes

56
of this learning offer the probable actions to counter the discussed factors that weaken the chance

of attaining successful strategy implementation.

Assessments on the standpoint of the respondents propose an “insider’s” analysis, which

is significant for detection of the similarities and dissimilarities in several companies’ strategy

implementation. Outcomes of the current study may support managers and executives in

improving the organization’s strategy tools and skills for administration and knowledge,

therefore enabling a better accommodating of the features that motivate employees to cooperate

with the company. Furthermore, the findings of the recent study present an opening for possible

organizational leaders to be aware of the factors that can motivate participants in strategy

implementation.

This study goes further than scholastic restrictions and presents insight into the necessary

technological ability and qualifications for the appropriate strategy implementation and attaining

the employees’ cooperation. The environment in a workplace is decisive to the accomplishment

and success of implementation, and this research largely integrates the qualitative significance

that is supplementary to the implementation process of company strategy.

Conclusion

57
Strategy management including its implementation occurs at three discussed levels: corporate,

business, and functional. As discussed, corporate strategies include development, stability,

economizing, and being worldwide. Frameworks for achieving them are the models such as

SWOT Analysis, BCG matrix etc. A method to business-level strategy is Porter’s forces and

competitive approach. With the use of these models, the researcher concludes that methods

applied in the market or for operations purposes can also influence or have an impact on the

implementation processes. To expand further, the elements that are key aspects on strategy

implementation can also me shaped by the results of using these models in the company. On the

other hand, implementation theories are common knowledge to those of the middle and general

managers but fail to follow the mentioned process and fail to consider the elements resulting to

unsuccessful strategy implementation.

The literature review has established that there are a variety of diverse viewpoint and

contemplation about strategy and its implementation. The study has also confirmed that

there are several key subjects that look as if it cut across most of the viewpoint. With the

use of literature review and assessment of survey conducted, the following were identified as the

key causes why strategies fail in implementation

Strategies are not distinguished and detailed: The first observed weak point of strategy is

indistinctness and or plainness. According to the review of literature, strategies are briefed to

involved employees but the details are not explained thus, only the bigger picture is seen and not

its details. To have any chance of accomplishment, a strategic plan for implementation must

from the beginning be bold and understandable.

58
Strategies are not recognized and understood: Having spoken a differentiated and definite

strategy is, obviously, no use if the employees who are involved to implement it are not mindful

of it, or being attentive of it, do not comprehend it. The strategy need to be vocalized and

communicated in such a method as to involve with the implementers. This frequently

necessitates a style of communication fairly dissimilar to what is proper for the people who

formulated it. Better still, evidently, is if the implementers recognize and understand the

strategy by benefit of being involved in formulating it.

Strategies are cannot be turned into action: Understanding something will not convey outcomes

except the strategy is brought into action. That is, each individual in the company must recognize

their role for the result of the strategy. The strategy will become achievable if there is action.

Simply having an idea on the strategy implementation is not sufficient, thus action is the key to

the completion of strategy implementation.

Strategies are not connected to departmental, group and individual goals: The mentioned actions

are expected to become entrenched in current departmental, group and individual objectives. If

this is not so, then present goals will continue to work in contradiction of and weaken the

conveyance of the strategy. Given that even if present departmental, group and individual goals

may not be officially printed down, they still exist in recognized cultures and performances and

are to be addressed.

Strategies are not connected to structure, resource division and incentive: Changes allow the

conveyance of the strategy and they likewise show an essential signal to the entire organization

that the strategy is an existent, real and substantial change.

59
At the core of these conclusions, is one simple element: a successful strategy must employ all

implementers in all their undertakings in diverse manners.

Recommendations

The recommendations listed below are the key points known to the managers or executors of

implemenatation but fail to do so. Based on the literary review, the researcher has gathered

knowledge on the related topic and eventually used as the basis for recommendations to lessen

the chance of failing in strategy implementation. The following recommendations are as follows:

1. Contemplation of the strategy limitations, inhibitors, and accelerators those are essential to

effectively implement the strategic design. Questions should be considered by the management.

Responding to these inquiries and others can aid the company to generate functioning plans that

are anticipated, realistic, and attainable. The questions are as follows:

What are the company financial, time, and resource necessities and restrictions?

How will the company’s organizational culture affect the management’s capacity to implement

successfully?

How rapidly can the company go from where it is currently to where it desires to be in the

future?

2. An effective combination of strategic planning and program and project management.

Companies need to position suitable value equally on strategic planning and operations to be

successful. The blend of the two is where strategic implementation subsists.

60
3. Cautious creation of organizational objectives and metrics: For a strategy to be effective it is

essential contemplate the whole organizational environment – all of the levels in an organization,

inside and out. With this understanding, objectives and auxiliary metrics can be well-defined and

encouraged downward all over the organization.

4. Communication plan: The researcher recommends that companies act as if they are

advertising their objectives and metrics to the operational associates of their organization. The

communication design should inform, enlighten, and support operative leaders and management

in accepting what is anticipated of them and let them to do the same with the employees they

manage. Since strategies will be established by the operational leaders who are accountable for

running the objectives of the strategic design, their rich understanding and participation is a

requirement.

Managers who need to drive successful implementation measured in enhanced results must

effectively mix these two elements: (A). Change-management knowledge and skill (B). General-

management viewpoint

A. Change-management knowledge and skill

Managers must identify that plain project management of the change effort is necessary. The

management must recognize and partner with resources that convey expertise, are able to design

in all of the simple elements to successful change, and who remain concentrated on making sure

that the company follows through on that design.

B. General-management viewpoint

The management of the change project prerequisites to connect change-management knowledge

to the real-world certainties of running the business.

61
Frequently, managers realize internal and external “change professionals” whose skill in their

specialized field is deep, but who basically do not comprehend much either about what the work

of the senior executive is really like, or what is at the core of a high-performance corporate

strategy. Similar to architects who recognize all about design but cannot provide a construction

on time and on financial plan, or doctors who are knowledgeable with illnesses but poor with

patients, these “experts” necessitate their customers to be accountable for the conversion from

the specialized field to the actual problem.

As a whole, effective strategic implementation depend on an operational design that produces

outcomes while handling time, funds, and resource limitations. The operational strategy is the

network through which strategy goes to action. And the plan places much desired responsibility

for effective implementation on the shoulders of managerial leaders, managers and “doers”.

This section, as with many others seems to be written by another person. I am doubtful if

this a copied from other academic works and is plagiarism. Overall the academic writing

level is beyond poor and I am sure it is copied form other academic writing in other

languages and then feed through a translating program…

I insist that the whole paper is reviewed and re-written on a proper academic level

62
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