FOLLOW SUGGESTIONS BELOW
Use Transition sentences in
between your answers within 2 pages full pages & double-spaced.
Notate the question number next to
your answered paragraph, so I can match question to answer.
Use facts from only the case to defend
your answers, if you use outside sources please use citations within the papers
-this way I can use keywords to search where you found it your answers.
Please choose more than one of these
key terms throughout the paper: *resources & capabilities *single and double-loop
learning*strategic planning *goal setting *strategic initiatives *value chain
*strategic executive framework *decision making biases.
Also please use the summaries to
guide your framework of the paper you write.
SUMMARY: STRATEGY EXECUTION
AND STRATEGIC PLANNING
In this chapter we have examined how a firm executes its
strategy. We distinguished between resources and capabilities and discussed how
they are related. The key concepts of the value chain and activity systems were
introduced as ways of analyzing what an organization does to deliver its goods
or services. We also discussed four elements of strategy execution that are
critical for building capabilities: (1) complementarity and consistency among the
firm’s policies and activities, (2) the firm’s control and coordination
systems, (3) the firm’s incentive systems, and (4) the culture and learning
systems of the organization. The decisions managers make regarding each of
these elements play a crucial role in developing the firm’s value and cost
drivers and therefore in determining its market position. Finally, we laid out a model of capability
planning that integrates the elements of execution, the firm’s target market
position, and organizational learning.
The key to understanding strategy
execution is how firms builds and maintain resources and capabilities. To
provide an economic advantage, a firm’s resources must contribute to its value
or cost drivers and be difficult for competitors to imitate or to neutralize
through substitution. The ability of a firm to accomplish tasks that are linked
to economic performance is called capability. Capability related tasks are
performed over time through the coordinated efforts of teams whose memberships
change even as the practices involved persist and improve. A capability must be
associated with specific activities and programs within the organization. The
major contributors to building and maintain capabilities are consistency and
complementarity among activities control and coordination systems compensation
and reward systems and people and culture. Two or more resources may be
complementary in that together they produce a more effective outcome than
produces independently. The concept of consistency or fit implies that the
firm’s policies and practices are aligned with the demands of the firm’s market
position.
SUMMARY: STRATEGIC PLANNING
In this chapter we have covered how firms, both single and
multi-business, develop strategic plans to improve performance. The best plans
are a line management tool, not the result of a staff exercise. They arise from
a spirited discussion of the opportunities and challenges the firm faces and
incorporate new ideas based on openness and experimentation. The results of
this discussion then constitute the firm’s commitments, through initiatives and
pro-grams, to improve its market performance. Strategic planning is thus a key
event in the annual cycle of organizational assessment and renewal.
Strategic planning is fundamentally, a line, not a staff,
activity. Strategic planning extends top managements leadership and power.
Strategic planning overcomes organizational drift. Strategic planning is not
strategy execution, but it makes execution more effective. A strategic plan at the
business level should have the following elements: mission statement, analysis
of the industry, goal setting on financial and operating metrics, strategic
initiatives, and operational programs.
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Use Transition sentences in
between your answers within appeared first on Course Hero.