MBA II (SEM IV) Strategic Management

Unit – IV
Strategic Choice

 Process of Strategic Choice

Introduction

Strategic Choice is looked upon as a key aspect of the strategic management process.
The process of strategic choice is essentially a decision-making process that has a lasting
impact on the organization‘s performance. The decision-making involves relating intent
to the vision/mission of the organization, generating alternatives, choosing one or more
alternatives that helps the firm to achieve its objectives and finally, implementing the
chosen strategy. Thus, for the purpose of selecting or rejecting alternatives, the mangers
have to ascertain a set of criteria.

These criteria are termed as selection factors and can be broadly classified into two
groups: the objective and subjective factors. The objectives factors are basically data
driven and are based on analytical techniques whereas the subjective factors are based
on one‘s experience and personal judgment.

CMCS, Yavatmal Page 1

MBA II (SEM IV) Strategic Management

Strategic Choice Example

Suppose a company has a dilemma in front of it of whether or not to invest in a new

inorganic growth process. There are multiple options available for overtaking purpose.
Now the process involved would be observing pros and cons of the companies being
overtaken. Then after short listing few of them considered the business, their
advantages, and their value addition to parent company.

After having the list of few, now the final narrowing down to a single company would
be a strategic choice on the factors mentioned above. Many stakes would be considered
considering both internal and external situations.

 Process of Strategic Choice

1. Focusing on alternatives – The aim of this step is to narrow down the choice to a
manageable number of feasible strategies. It can be done by visualizing a future state
and working backward from it. Managers generally use GAP analysis for this purpose.
By reverting to a business definition it helps the managers to think in a structured
manner along any one or more dimensions of the business.

At the Corporate level, strategic alternatives are -Expansion, Stability, Retrenchment,

Combination

At the Business level, strategic alternatives are – Cost leadership, Differentiation or

Focused business strategy.

2. Analyzing the strategic alternatives- The alternatives have to be subjected to a

thorough analysis that relies on certain factors known as selection factors. These
selection factors determine the criteria on the basis of which the evaluation will take
place. They are:

Objective factors – These are based on analytical techniques and are hard facts used to
facilitate strategic choice.

CMCS, Yavatmal Page 2

MBA II (SEM IV) Strategic Management

Subjective factors – These are based on one`s personal judgment, collective or

descriptive factors.

3. Evaluation of strategies – Each factor is evaluated for its capability to help the
organization to achieve its objectives. This step involves bringing together analysis
carried out on the basis of subjective and objective factors. Successive iterative steps of
analyzing different alternatives lie at the heart of such evaluation.

4. Making a strategic choice– A strategic choice must lead to a clear assessment of

alternatives which is the most suitable alternative under the existing conditions. A
blueprint has to be made that will describe the strategies and conditions under which it
operates. Contingency strategies must be also devised

 Tools & Techniques of Strategic Analysis

Strategic analysis is a crucial process for businesses and organizations to assess their
internal and external environments, identify opportunities and threats, and develop
effective strategies to achieve their goals. There are various tools and techniques used in
strategic analysis, including:

1. SWOT Anaalysis

SWOT is one of the simpler forms of strategic analysis available to an organisation. This
is an initialism of Strengths, Weaknesses, Opportunities and Threats. When completing
a SWOT analysis, an organisation looks at each of its Strengths, Weaknesses,
Opportunities and Threats to develop a strategy. These strategies use strengths to form
business opportunities and limit threats while creating solutions to the organisation's
weaknesses.

2. Porter's value chain

Porter's value chain is a simple method for finding and describing the main functions of
an organisation. For example, in a shop that sells its own goods, the functions are the

CMCS, Yavatmal Page 3

MBA II (SEM IV) Strategic Management

manufacturing side of the business and the sales aspect of the organisation. The value
chain also discusses how these functions contribute to value creation, with the
manufacturing side creating value and the shop converting this value into financial
results. This is a beneficial tool for organisations seeking a better understanding of their
own facilities and functionality and is ideal for full structural reviews.

3. McKinsey 7S

McKinsey 7S is a relatively complex tool organisations use to identify various strengths

and weaknesses. Each S refers to a different part of the organisation. These include:

 Structure
 Systems
 Style
 Staff
 Skills
 Strategy
 Shared values

By developing a comprehensive understanding of each of these aspects, the

organisation finds the strengths and weaknesses of each part. In future strategies,
organisations then focus on accentuating the benefits of these sections and work
towards removing any weaknesses. This breakdown provides opportunities to limit
weaknesses in the organisation and improve future outcomes.

4. PESTEL

A PESTEL analysis considers external factors rather than the organisation itself. These
include those that provide the organisation with potential threats or opportunities for
growth in the future. The factors are:

 Political: The implications of current government decisions on the organisation.

CMCS, Yavatmal Page 4

MBA II (SEM IV) Strategic Management

 Economic: The implications of the macroeconomic situation on the organisation's

business outlook.
 Social: The implications of current social trends and ideologies.
 Technological: The implications of technological advances on the organisation.
 Environmental: The implications of climate and environmental changes on the
organisation.

Legal: The current legal state of the organisation's primary industry.

By having a comprehensive understanding of each of these aspects, the organisation

develops a strategy for the future that amplifies its opportunities and limits any threats.
This increases the organisation's potential for growth and accounts for future shifts in
these aspects to create a more functional and future-proof business. This is an ideal tool
for an organisation in a rapidly changing industry.

5. The Business Model Canvas

The Business Model Canvas is a tool that organisations use when developing an
understanding of their own business model and the potential opportunities this model
offers. This is a large document with several features surrounding the business,
including:

 Key activities: A list of the activities the organisation engages in, such as
manufacturing, sales or consultancy.
 Key partners: A list of any partners the organisation has, including vendors, owned
businesses and shareholders.
 Key resources: A list of the organisation's useful resources, including materials and
infrastructure.
 Cost structure: A list of the organisation's main costs and the extent of these costs.
 Revenue streams: A list of the organisation's revenue streams and the scale of these
streams.

CMCS, Yavatmal Page 5

MBA II (SEM IV) Strategic Management

 Customer relationships: A list of the organisation's most important clients and the
relationships the organisation has with them.

Filling out a Business Model Canvas provides a significant amount of insight into the
organisation. This relatively limited level of detail offers an overview of what the
organisation does, who the organisation does it for and its current operating costs. The
information in this document offers a lot of insight into ideal operational changes
within the organisation.

6. Pareto analysis

A Pareto analysis bases itself on the idea that 80% of an organisation's profit comes from
completing just 20% of the work, with 80% of issues coming from 20% of causes. The
origin of this theory was Vilfredo Pareto, an Italian economist who discovered that 80%
of Italian land fell under the ownership of just 20% of Italians. This is an applicable
theory in the majority of industries.

Using a Pareto analysis effectively provides insight into where an organisation makes
the most of its opportunities. Finding the profitable 20% of products provides a strong
foundation for the organisation and suggests that it may innovate rather than change its
products. Similarly, understanding the source of 80% of issues, when this is a different
part of the organisation, is an opportunity to limit problems and increase efficiency.

7. Growth-share matrix

The growth-share matrix establishes the value of an organisation's portfolio. It measures

the relative market share on the Y-axis and the market growth rate on the X-axis to
establish the value of each individual investment. There are four different sections,
which are:

 Stars: This is high value and high growth. These are the ideal parts of a portfolio, as
they provide a lot of value while having a high ceiling for growth.

CMCS, Yavatmal Page 6

MBA II (SEM IV) Strategic Management

 Cash cows: This is high value and low growth. These are beneficial for a portfolio as
they present a consistent source of income.
 Problem children: This is low value and high growth. These have varying roles in a
portfolio, with low existing value alongside the potential for exponential growth.
 Dogs: This is low value and low growth. Avoid having these investments in a
portfolio.

By understanding the nature of a portfolio in this way, investment organisations may

guide their future investment strategies. Organisations pivot towards cash cows and
stars with some problem children while selling any dogs to maximise the portfolio's
potential. A growth-share matrix is just one part of portfolio analysis, with financial
assessments also beneficial.

8. Porter's five forces

Porter's five forces is a model that examines several aspects of a specific industry.
Organisations use this when developing an understanding of the potential for growth
in the industry. The forces are below, using the energy industry as an example:

 Competition in the industry: This refers to the number of competitive organisations

in the industry. In the energy industry, there are relatively few competitors
generating energy.
 Potential for new entrants: This refers to the barriers to entry in the industry. In the
energy industry, there are high levels of regulation, thus the low potential for new
entrants.
 Power of suppliers: This defines the influence suppliers have over the industry. As
there are few suppliers in the energy industry, each supplier has a lot of influence.
 Power of customers: This details the power customers have in the market. As
customers need energy and have very few competitive options, customers have little
power.

CMCS, Yavatmal Page 7

MBA II (SEM IV) Strategic Management

 Threat of substitutes: This gauges the potential for substitute goods replacing
prominent products in the market. Energy has some incoming substitutes, such as
the solar power market.

 Portfolio Analysis and Display Matrix

Portfolio Analysis is one of the areas of investment management that enable market
participants to analyze and assess the performance of a portfolio (equities, bonds,
alternative investments, etc.), intending to measure performance on a relative and
absolute basis along with its associated risks.

 BCG Matrix and GE Nine-Cell Matrix

BCG Matrix

The Boston Consulting Group Matrix (BCG Matrix), also referred to as the product
portfolio matrix, is a business planning tool used to evaluate the strategic position of a
firm‘s brand portfolio. The BCG Matrix is one of the most popular portfolio analysis
methods. It classifies a firm‘s product and/or services into a two-by-two matrix. Each
quadrant is classified as low or high performance, depending on the relative market
share and market growth rate. Learn more about strategy in CFI‘s Business Strategy
Course.

CMCS, Yavatmal Page 8

MBA II (SEM IV) Strategic Management

Stars

 Firstly, products in this segment have a high market share and the market is
growing strongly.
 Products that are called the star products require high cash resources.
 But, after some time, all growth gets slow, and the star products come under the
cash cows to keep their market share.
 If they are not able to keep their market share, these products will become dogs.
 For example, Thumbs Up forms a part of ―stars‖ with continuous growth rate
and high market share.

Cash Cows

 Products in this region have a large market share, but these products‘ growth
rate is very low.
 Because being in a strong position in the market product can generate colossal
cash;
 So, the company should generate cow milk for as long as possible, as the growth
perspective is very low.
 Cash flow patterns are highly predictable.
 For example, Limca and COCA-COLA are part of cash cows with a low growth
rate and high market share.

Question Marks

 In case of a question mark, the product has a low market share, but the growth
rate is high.
 These products consume huge amounts of resources, and its growth rate is
equally high, but the company cannot increase its market share.
 These products require regular analysis to check whether the product is worth
maintaining.

CMCS, Yavatmal Page 9

MBA II (SEM IV) Strategic Management

 For example, If you introduce a new smartwatch to the market, it will be difficult
to gain ground, despite the fact that the market is growing rapidly.
This is because large companies already have strong differentiation combined
with large market budgets.

Dogs

 The segment with low market share and low market growth is called the dogs
because they have a minimal market share and growth rate.
 These products are called cash traps, as these products‘ ROI is not sufficient to
generate profits.
 For these reasons, they come first in the list of divestiture.
 For example: Let‘s take the beverage industry, here Minute Maid and Diet Coke
which are consumed rarely come in the category of ―dogs‖.

4 Quadrants of the BCG Matrix

 The BCG Growth-Share Matrix uses a 2x2 grid with growth on one axis and
market share on the other. Each of the four quadrants represents a specific
combination of relative market share and growth:
 Low Growth, High Share: Companies should milk these cash cows for cash to
reinvest elsewhere.
 High Growth, High Share: Companies should significantly invest in these stars
as they have high future potential.
 High Growth, Low Share: Companies should invest in or discard these question
marks, depending on their chances of becoming stars.
 Low Share, Low Growth: Companies should liquidate, divest, or reposition
these pets.

CMCS, Yavatmal Page 10

MBA II (SEM IV) Strategic Management

Example of a BCG Growth Matrix

There are many companies that we can apply the growth matrix to in the real world.
Apple (AAPL) is a great candidate. Let's take a look at the products Apple has on the
market according to the matrix categories:

 Star: iPhone
 Cash Cow: Macbook
 Question Mark: Apple TV
 Dog: iPad

Apple BCG matrix

Apple‘s BCG matrix analysis shows that iPods belong to the dogs category due to
intense competition and limited consumer demand. Apple iTunes, MacBook, and iMac
can be placed in the cash cows quadrant since these products have maintained their
market dominance and increased cash flows at the same time. The company has
invested significant sums in developing new product features to stay ahead of the
competition and gain a substantial market share. In addition, these products allowed
the brand to build a strong customer base that exclusively prefers Apple‘s offerings.

CMCS, Yavatmal Page 11

MBA II (SEM IV) Strategic Management

Apple‘s question marks quadrant in the BCG matrix is represented by Apple Smart TV.
This product generates revenue, but if the brand resolves the problems with its
ecosystem, Apple TV has the potential to move into the stars category. Now, the stars
quadrant contains iPhone, iPad, and Apple Smartwatch as these products have a loyal
consumer base and set new sales records every year. Furthermore, the company invests
a sizeable portion of its revenue in R&D and consistently improves its products.

Starbucks BCG matrix

Dogs quadrant in the Starbucks BCG matrix is represented by packaged coffee beans.
Since customers visit Starbucks for fast service, the company does not generate much
profit from selling coffee beans. However, mugs are Starbucks‘ cash cows as people
purchase them during certain seasons, so these products provide significant revenue.

CMCS, Yavatmal Page 12

MBA II (SEM IV) Strategic Management

Tea belongs to the question marks category, as Starbucks is better known for its coffee.
At the same time, this product has many competitors in the market, such as Twinings.
Therefore, Starbucks can examine the causes of its low market share and develop
methods to increase it in a growing market. Coffee and packed food are Starbucks‘ stars
as these products bring in a handsome share of profits, and the company continues to
invest money to promote and improve these offerings.

 GE Nine-Cell Market

The GE matrix, also known as the McKinsey matrix or the Boston Consulting Group
matrix, is a tool used for strategic business management and planning. It was first
developed by General Electric (GE) in the 1970s and is now widely used in the
corporate world. The GE matrix helps managers to classify a company's business units
based on their relative industry attractiveness and business unit strength.

GE nine-box matrix is a strategy tool that offers a systematic approach for the
multi business enterprises to prioritize their investments among the various business
units. It is a framework that evaluates business portfolio and provides further
strategic implications. Each business is appraised in terms of two major dimensions –
Market Attractiveness and Business Strength. If one of these factors is missing,
then the business will not produce desired results. Neither a strong company
operating in an unattractive market, nor a weak company operating in an attractive
market will do very well

CMCS, Yavatmal Page 13

MBA II (SEM IV) Strategic Management

Green zone - Suggests you to ‗go ahead‘, to grow and build, pushing you through
expansion strategies. Businesses in the green zone attract major investment.

Yellow zone - Cautions you to ‗wait and see‘ indicating hold and maintain type of
strategies aimed at stability.

Red zone - Indicates that you have to adopt turnover strategies of divestment and
liquidation or rebuilding approach.

 Grow – Business units that fall under grow attract high investment. Firms may go
for product differentiation or Cost leadership. Huge cash is generated in this phase.
Market leader sexist in this phase.
 Hold – Business units that fall under hold phase attract moderate investment.
Market segmentation, Market penetration, imitation strategies are adopted in this
phase. Followers exist in this phase.

CMCS, Yavatmal Page 14

MBA II (SEM IV) Strategic Management

 Harvest - Business units that fall under this phase are unattractive. Low priority is
given in these business units. Strategies like divestment, Diversification, mergers are
adopted in this phase.

Advantages of GE Matrices

Generalized eigenspace matrices (GE matrices) have several advantages, including:

 They can be used to solve systems of linear differential equations with constant
coefficients.
 They can be used to find the eigenvectors and eigenvalues of a matrix, which can
be useful in understanding the behavior of a system or in solving certain types of
optimization problems.
 They can be used to diagonalize a matrix, which can simplify computations and
make it easier to understand the properties of a system.
 They can be used to find the inverse of a matrix, which can be useful in solving
systems of linear equations.
 They can be used to find the matrix exponential, which can be used in solving
systems of linear differential equations.
 They can be used to find the matrix logarithm, which can be used in solving
certain types of optimization problems.
 They can be used to find the matrix square root, which can be useful in solving
certain types of optimization problems.

The important advantage of GE matrix is Portfolio analysis. Let‘s take the example of
Patanjali for the application of GE matrix.

Patanjali’s Dantkanti, Honey and Ghee operate in the green segment giving the
organization opportunities to go ahead and grow & build the product. The green zone
pushes an organization for expansion strategies.

CMCS, Yavatmal Page 15

MBA II (SEM IV) Strategic Management

Patanjali’s Candy, Fruit juice, and medicines takes place in yellow category signifying
that brand should hold the product for some time and makes necessary developments.
The yellow area suggests making strategies aimed at maintaining stability.

Patanjali’s Home care category like agarbatti, dish wash bar etc comes under red area
due to the presence of other strong competitors. The red segment signifies that
company should start harvesting the brand. Brand harvesting means maximizing your
profit by reducing your expenditure on brand due to its decline phase in product life
cycle.

 Strategy Implementation

Strategy implementation is the fourth step in the strategic management process and it‘s
where you turn your strategic plan into action. This can be anything from executing a
new marketing plan to increase sales to implementing a new work management
software to boost efficiency across internal teams.

Strategy implementation is the act of executing a plan to reach the desired goal or set of
goals. The brainstorming process helps formulate these ideas, while the implementation
process puts those strategies or plans into action. Strategy implementation depends
heavily on feedback and status reports to ensure the strategy is working and to rework
any areas that may need improvement.

Definition: Strategy Implementation refers to the execution of the plans and strategies,
so as to accomplish the long-term goals of the organization. It converts the opted
strategy into the moves and actions of the organisation to achieve the objectives.

Features of Strategy Implementation

The primary features of strategy implementation are as follows:

Integrated Process

CMCS, Yavatmal Page 16

MBA II (SEM IV) Strategic Management

Strategy implementation is a holistic and integrated process. It implies that different

activities that constitute strategy implementation are interdependent. For instance, an
organization's promotional strategy's activities are interrelated and have to be executed
in accordance with each other.

Action Oriented

A strategy should be actionable. It can be made actionable via various management

processes, including planning and organizing. The management is not just responsible
for formulating a plan but also for converting the plan into action.

Varied Skills

It suggests that strategy implementation concerns wide-ranging skills. Vast knowledge,

abilities, positive attitude, and organizational skills are required to implement a
strategy. Proficiency in these skills helps in allocating resources, crafting policies, and
devising structures.

Wide Involvement

Strategy implementation demands the participation of all the components of a system.

It includes the top, middle, and lower level management. The top management has to
maintain transparency and clarity while communicating the strategy to be
implemented. The middle management must further regulate the norms and ensure no
miscommunication happens.

Wide Scope

It covers a range of administrative and managerial activities. For instance, to implement

a marketing strategy, you must prepare a marketing budget, conduct market research,
develop a promotional plan, conduct test marketing, launch the product, and collect
customers' feedback.

CMCS, Yavatmal Page 17

MBA II (SEM IV) Strategic Management

Strategic implementation process

The strategic implementation process includes concrete steps. There is also a document
called strategic implementation plan (SIP) which outlines the activities and decisions
that are essential for implementing the strategy. There are five strategic implementation
steps:

Define your goals

First, the business should identify the goals that the new strategy should achieve. The
business needs to be clear about what its goal is, otherwise it will never be able to
achieve it. Moreover, it is important to think rationally and set objectives that are
achievable. This will save time spent trying to achieve unrealistic goals.

Do the research

Gathering all the information regarding the project and deeply analysing them. This
will allow the organization to understand its needs and evaluate possible opportunities
and threats.

Create a strategy

Owing to the research that has been done in the previous steps, the business is now
ready to form an appropriate strategy. It is important to determine what the enterprise
already has and what else it needs. The business should think about how it can look for
external resources, try to solve any issues and then start formulating the strategy.

Implement the strategy

This is probably the most challenging part of the process as it is the action stage of the
strategic management process. Even though the organization might have created an
excellent strategy, it still needs to implement it. Managers should make sure that the
work is delegated and everyone within the firm is made clear of their responsibilities

CMCS, Yavatmal Page 18

MBA II (SEM IV) Strategic Management

and duties. What is more, it is important to bear in mind that strategies might not work
and therefore might need to be restructured at some point.

Evaluate and control

As a final step, organisations should look back on the entire process and think about
how it went and measure the performance. Perhaps some things might have been done
better and could be improved in the future. Moreover, even though the organisation
might have succeeded it is important to keep an eye on the strategy, monitor how it is
developing and determine whether the enterprise is moving towards the goal.

 Activating Strategy

Activating strategies refer to the tactics and actions that organizations use to initiate
change and move towards their goals.. These strategies can include things like
marketing campaigns, process improvements, or new product launches. The goal of
activating strategies is to create momentum and get things moving in a positive
direction.

Alignment with Vision and Objectives: Ensure that the strategies are aligned with the
organization's vision, mission, and overarching objectives. The strategies should
support the long-term direction and goals of the organization.

Prioritization: Prioritize the strategies based on their importance and feasibility. Not all
strategies can be activated simultaneously, so it's essential to identify the most critical
ones that will have the most significant impact on achieving the desired outcomes.

Resource Allocation: Allocate the necessary resources—such as financial resources,

human capital, technology, and time—to support the activation of the chosen strategies.
Ensure that resources are allocated efficiently and effectively to maximize their impact.

CMCS, Yavatmal Page 19

MBA II (SEM IV) Strategic Management

Action Planning: Develop detailed action plans for each strategy, outlining the specific
steps, tasks, timelines, and responsibilities required for implementation. Break down
the strategies into actionable components to facilitate execution.

Stakeholder Engagement: Engage key stakeholders—including employees,

management, customers, suppliers, and other relevant parties—in the activation
process. Seek their input, involvement, and support to increase buy-in and alignment
with the strategies.

Communication: Communicate the strategies, action plans, and expectations clearly

and consistently to all stakeholders within the organization. Ensure that everyone
understands the purpose of the strategies, their role in implementation, and how they
contribute to the organization's success.

Training and Development: Provide training and development opportunities to equip

employees with the knowledge, skills, and capabilities required to implement the
strategies effectively. Invest in capacity-building initiatives to strengthen the
organization's overall capabilities.

Monitoring and Feedback: Establish mechanisms for monitoring progress, tracking

performance, and gathering feedback throughout the activation process. Regularly
review key performance indicators (KPIs) and milestones to assess progress and
identify any deviations or areas for improvement.

Celebration and Recognition: Celebrate achievements, milestones, and successes

reached during the activation process. Recognize and reward individuals and teams for
their contributions to the implementation of the strategies. Positive reinforcement can
help maintain motivation and momentum.

CMCS, Yavatmal Page 20

MBA II (SEM IV) Strategic Management

 Resource Allocation

Resource allocation is the process of identifying all your available resources—whether

it‘s labor or monetary—for a project and then strategically assigning them to tasks that
enable them to do their best work.

For agencies juggling multiple projects for different clients, resource allocation is key to
making sense of creative chaos. Matching the right person, or resource, with the right
project makes everyone happier in the end. Your staff gets to work on the projects
they‘re best suited for, so clients are likely to receive high-quality project deliverables
and results.

As projects evolve and client expectations change, resources are reallocated to keep
progress on track with project timelines.

What is a resource?

A resource is anything that helps you complete a project. This can include:

 Team members
 Budget
 Project timelines
 Ideas, intellectual property, or specific skill sets
 Equipment
 Tools or software
 Automated processes that reduce work about work

Benefits of Effective Resource Allocation

 Maximizes efficiency. Resource allocation helps the agency to take on as many

projects as your teams can handle—no more lost opportunities due to overstaffing,
or project failures due to understaffing

CMCS, Yavatmal Page 21

MBA II (SEM IV) Strategic Management

 Fosters collaboration. The client and your team know who‘s working on what
because you‘ve divided tasks and responsibilities clearly across the team
 Increases your agency’s profit margins. Get the most out of each project‘s budget
and control staffing costs
 Boosts client satisfaction. Deliver better project outcomes by keeping projects on
track and assigning the right people to each job

Project and Procedural Implementation

Project implementation refers to the phase in the project management lifecycle where
the plans developed during project planning are put into action. It involves executing
the activities outlined in the project plan, monitoring progress, managing resources, and
addressing any issues that arise to ensure successful completion of the project. Here's a
breakdown of project implementation:

Initiation: Before implementation begins, it's essential to ensure that the project has
been formally initiated and all necessary approvals and authorizations are in place. This
includes defining the project scope, objectives, stakeholders, and obtaining any required
resources or funding.

Execution: This is the primary phase of project implementation where the actual work
defined in the project plan is carried out. Tasks are assigned to team members, and they
start performing their respective activities according to the schedule and requirements.
Key activities during execution include:

Task Execution: Team members perform the tasks assigned to them, following the
defined processes and standards.

Resource Allocation: Resources, including human resources, materials, equipment, and

finances, are allocated and managed to support project activities.

CMCS, Yavatmal Page 22

MBA II (SEM IV) Strategic Management

Communication: Effective communication among team members, stakeholders, and

project managers is crucial during implementation to ensure everyone is informed
about project progress, issues, and changes.

Risk Management: Risks identified during project planning are monitored, and
mitigation strategies are implemented to address them as necessary.

Quality Assurance: Quality assurance processes are implemented to ensure that project
deliverables meet the specified quality standards.

Monitoring and Control: Throughout the implementation phase, project progress is

monitored and controlled to ensure that the project stays on track. This involves
tracking key performance indicators (KPIs), comparing actual progress against the
project plan, and taking corrective actions as needed to address any deviations from the
plan. Key activities during monitoring and control include:

Performance Measurement: Progress is measured against predefined metrics to assess

whether the project is meeting its objectives and milestones.

Change Management: Changes to project scope, schedule, or resources are evaluated,

documented, and managed through a formal change control process.

Issue Resolution: Any issues or problems that arise during implementation are
identified, documented, and addressed promptly to minimize their impact on the
project.

Quality Control: Quality control activities are performed to verify that project
deliverables meet the specified quality standards and requirements.

Closure: Once all project activities have been completed and the project objectives have
been achieved, the project is formally closed. This involves documenting lessons
learned, obtaining final approvals and sign-offs, releasing project resources, and
transitioning deliverables to the appropriate stakeholders.

CMCS, Yavatmal Page 23

MBA II (SEM IV) Strategic Management

Procedural Implementation

Procedural Implementation deals with the different aspects of the regulatory

framework that Indian companies have to consider.

Any organisation which is planning to implement strategies must be aware of the

regulatory framework within which the plans, programmes , and projects have to be
approved by the government (central and state).

Following the procedures laid down for implementation

constitutes an important component of strategy implementation in

the Indian context :

1) Licensing Procedure

2) Foreign Collaboration Procedure

3) FEMA Requirements

4) MRTP Requirements

5) Capital Issue Control Requirements

6) Import and Export Requirements

7) Incentives and Facilities Benefits

8) Pollution Control & Labour Legislation Requirements

CMCS, Yavatmal Page 24

MBA II (SEM IV) Strategic Management

 Structural and Functional Implementation

Structural and functional implementation are two key aspects in the development and
deployment of systems, software, or any complex solution. Here's a breakdown of each:

Structural Implementation:

Structural implementation refers to the design and organization of the components or

elements within a system. It involves defining the architecture, specifying the modules,
classes, interfaces, and their relationships. This phase focuses on creating a blueprint or
framework for the system, outlining how different parts will interact with each other.

Design Phase: This is where the structural implementation begins. Designers create
diagrams, such as UML (Unified Modeling Language) diagrams, to represent the
structure of the system. This includes class diagrams, component diagrams, deployment
diagrams, etc.

Coding Phase: Once the design is finalized, developers start writing the actual code
based on the design specifications. They create classes, functions, methods, and other
structural elements according to the design.

Integration Phase: Different modules or components developed by different teams or

individuals are integrated to form a complete system. This phase ensures that all the
structural elements work together seamlessly.

Functional Implementation:

Functional implementation, on the other hand, deals with the realization of the desired
functionality or behavior of the system. It involves translating requirements into
executable code and ensuring that the system performs its intended tasks correctly.

Requirements Analysis: Functional implementation starts with understanding the

requirements of the system. This involves gathering, analyzing, and documenting what
the system needs to do from a functional perspective.

CMCS, Yavatmal Page 25

MBA II (SEM IV) Strategic Management

Development Phase: Developers implement the functionalities specified in the

requirements. This involves writing algorithms, logic, and code to achieve the desired
behavior of the system.

Testing Phase: Once the functionalities are implemented, testing is conducted to verify
that the system behaves as expected. This includes unit testing, integration testing,
system testing, and acceptance testing to ensure that all functional requirements are
met.

Deployment Phase: After successful testing, the system is deployed into the production
environment where it becomes available for its intended users. This may involve
installation, configuration, and setup of the system in the target environment.

CMCS, Yavatmal Page 26