TThehe  NNaaturturee  ooff  SStrtraattegegyy  IImplmplemeemennttaatitioonn
       Successful of strategy formulation does not guarantee successful strategy implementation.  It is 
       more difficult to do something than to say you are going to do it 
                     Strategy Formulation                            Strategy Implementation
        1. Positioning forces before action             1. Managing forces during the action
        2. Focus on effectiveness                       2. Focus on efficiency
        3. Primarily an intellectual process            3. Primarily an operational process
        4. Require good intuitive and analytical        4. Require special motivation and 
          skills                                           leadership skill
        5. Require coordination among a few             5. Require coordination among many 
          individuals                                      individuals 
            MMaannagagememenent t PPererssppecectitivvee
                     1. Establishing Annual Objectives
                            2. Devising policies
                          3. Allocating resources
               4. Altering an existing organizational structure 
                    5. Restructuring and Reengineering
                   6. Revising reward and incentive plans
                    7. Minimizing resistance to change
                   8. Matching managers with strategies
                 9. Developing strategy-supportive culture
               10.Adapting production / operation processes
            11.Developing an effective human resources function
                      12.And if necessary downsizing
 AAnnnnuualal  
 ObObjjecectitivveses
                                                                                 Long-term Company Objective.
                                                                        Double company revenues in two years
                                                                        Through market development and 
                                                                        Market penetration .
                                                                        (Current revenues  $ 2 million)
                                     Division 1 Annual Objectives :                                                 Division 2 Annual Objectives :
                                     Increase divisional revenues by 40% this years                                 Increase divisional revenues by 50% this 
                                     and 40% next year. (Current revenues are $ 1                                   years and 50% next year. (Current revenues 
                                     million)                                                                       are $ 0,5 million)
               R & D Annual Objectives :                             Marketing Annual Objective :                      Production Annual Objective :
               Develop two new product this year that                Increase the number of sales                      Increase production efficiency by 
               are successfully marketed                             people by 40 this year                            30% this year
 EEssttablabliisshhiinng g AAnnnnuualal  
 ObObjjecectitivveses
    • Is a decentralized activity that directly involves all managers in an 
     organization.
    • Annual objective are essential for strategy implementation 
     because they :
      
       Represent the basis for allocating resources
      
       Are primary mechanism for evaluating managers
      
       Are the major instrument for monitoring progress toward achieving 
       long-term objective
      
       Establish organizational, division, and department priority
        TThhe e CoCommppananyy’s ’s RevRevenenuues es EExxppecectatitationons s ((iinn  
        MiMilllliioonn  EuEurrosos))  
                                                             2009             2010            2011
                 Division 1 Revenues                         1.00                         1.40                   1.96
                 Division 2 Revenues                                               0.50                        0.70                   0.98
                 Division 3 Revenues                                               0.50                        0.75                 1.125
                 Total Company Revenues                                      2.00                        2.85                4.065
             1. Annual objective serve as guidelines for action, directing and channeling effort and activities of 
                organization members
             2. They provide a source of legitimacy in an enterprise by justifying activities to stake holders
             3. They serve standard of performance
             4. They serve as an important source of employee motivation and identification
             5. They give incentives for managers and all employees to perform
             6. They provide a basic for organization design