Deck 10: Superior Strategy Executionanother Path to Competitive Advantage

Question 1

Implementing and executing a new or different strategy call for new resource allocations. Using your university's access to LexisNexis or EBSCO, search for recent articles that discuss how a company has revised its pattern of resource allocation and divisional budgets to support new strategic initiatives.

Answer 1

A change in strategy certainly requires budget reallocations and resource shifting. For executing and implementing a new or different strategy enough finance is required. Too little financing will slow down the planned strategic initiatives and too much of funding will result in the wastage of organizational resources. It also requires screening of new innovative ideas from different people. All these requirements will boost the operating budgets. So before implementing a new strategy the top management should provide enough power and resources to make things happen.
Some of the recent articles are examined to find out how a company has revised its pattern of resource allocation and operational budgets to support its new strategic initiatives.
Company H formulated a strategic plan so as to manufacture a pollution free hybrid vehicle. It put its all efforts and finally it was successful in producing one. But when they launched the product in the market it became a failure as there were not sufficient fuel stations for the vehicle. Immediately the company focused on changing the existing strategy and introduced a new one.

Question 2

Have you and your co-managers allocated ample resources to strategy-critical areas? If so, explain how these investments have contributed to good strategy execution and improved company performance.

Answer 2

One can consider Company Z which has adopted a new strategy for its business activities. Let us analyze how the manager and the co-manager in the company have allocated ample resources to strategy-critical activities and how it contributed to good strategy execution.
The analysis is as follows:
• Before implementing and executing a new strategy the top management of company Z determined enough funding or sources of finance which are required to execute it.
• It gathered information from different people and collected new facilities and equipment required for effective execution. It approved relevant information and denied the rest.
• The company has a unique ability to marshal the resources which are needed to support new strategy.
• Managers reviewed the budget proposals deeply and directed proper resources to strategy-critical organizations as a change in strategy certainly needs budget reallocation and resource shifting.
• They took tough decisions to makes things happen and put enough resources behind new strategic initiatives.

Question 3

Netflix avoids the use of formal policies and procedures to better empower its employees to maximize innovation and productivity. The company goes to great lengths to hire, reward, and tolerate only what it considers mature, "A" player employees. How does the company's selection process affect its ability to operate without formal travel and expense policies, a fixed number of vacation days for employees, or a formal employee performance evaluation system?

Answer 3

When a company frames a new strategy it will have change its policies and procedures also. With the help of some articles let us discuss how a company should change or revise its policies and procedures as per new strategy.
Well-constructed policies and procedures will help the organization in good strategy execution. So, while revising a policy a manger should keep the following in mind:
• Standardized and strict policies are essential for good strategy execution. It will enforce the consistency need for a particular strategy.
• The revised policies and procedures should promote a work climate that facilitates good strategy execution.
• Before revising a policy one should keep in mind the goals of new strategy. He should speak with different individuals including employees and should get their opinion.
• The top management should review the policy and procedures before its execution. It should be checked whether it forms any barriers for the execution of new strategy.
• Employees will be used with old policies and procedures. So it is very important to provide training to employees to gain knowledge about new policies. This will help in better execution of new strategies.

Question 4

Does your company have opportunities to use incentive compensation techniques? If so, explain your company's approach to incentive compensation. Is there any hard evidence you can cite that indicates your company's use of incentive compensation techniques has worked? For example, have your company's compensation incentives actually boosted productivity? Can you cite evidence indicating the productivity gains have resulted in lower labor costs? If the productivity gains have not translated into lower labor costs, then is it fair to say that your company's use of incentive compensation is a failure?

Question 5

Concepts Connections 10.2 discusses Whirlpool Corporation's Operational Excellence initiative and its use of Six Sigma practices. How did the implementation of the program change the culture and mind-set of the company's personnel? List three tangible benefits provided by the program. Explain why a commitment to quality control is important in the appliance industry.

Question 6

If you were making a speech to company personnel, what would you tell them about the kind of corporate culture you would like to have at your company? What specific cultural traits would you like your company to exhibit? Explain.

Question 7

Company strategies can't be implemented or executed well without a number of information systems to carry on business operations. Using your university's access to LexisNexis or EBSCO, search for recent articles that discuss how a company has used real-time information systems and control systems to aid the cause of good strategy execution.

Question 8

Following each decision round, do you and your co-managers make corrective adjustments in either your company's strategy or how well the strategy is being executed? List at least three such adjustments you made in the most recent decision round. What hard evidence (in the form of results relating to your company's performance in the most recent year) can you cite that indicates the various corrective adjustments you made either succeeded or failed to improve your company's performance?

Question 9

Concepts & Connections 10.3, provides a sampling of motivational tactics employed by several companies (many of which appear on Fortune 's list of the "100 Best Companies to Work For" in America). Discuss how rewards at Google, JM Family Enterprises, Wegmans, and Ukrop's Supermarkets aid in the strategy execution of each company.

Question 10

Concepts & Connections 10.4 discusses W. L. Gore's strategy-supportive corporate culture. What are the standout features of Gore's corporate culture? How does W. L. Gore's culture contribute to innovation and creativity at the company? How does the company's culture make W. L. Gore a good place to work?

Question 11

Leading the strategy execution process involves staying on top of the situation and monitoring progress, putting constructive pressure on the organization to achieve operating excellence, and initiating corrective actions to improve the execution effort. Using your university's access to business periodicals, discuss a recent example of how a company's managers have demonstrated the kind of effective internal leadership needed for superior strategy execution.

Question 12

The heart of Toyota's strategy in motor vehicles is to outcompete rivals by manufacturing world-class, quality vehicles at lower costs and selling them at competitive price levels. Executing this strategy requires top-notch manufacturing capability and super-efficient management of people, equipment, and materials. Concepts & Connections 10.1, discusses the principles, practices, and techniques grounded in Toyota's famed Toyota Production System. How does Toyota's philosophy of dealing with defects, empowering employees, and developing capabilities impact strategy execution? Why are its slogans such as "Never be satisfied" and "Ask yourself 'Why?' five times" important?

Question 13

How would you describe the organization of your company's top management team? Is some decision making decentralized and delegated to individual managers? If so, explain how the decentralization works. Or are decisions made more by consensus, with all comanagers having input? What do you see as the advantages and disadvantages of the decision-making approach your company is employing?