3.1 Strategy Implementation

CHETANA’S
H.S. College of Commerce and Economics,

Smt. Kusumtai Chaudhari College of Arts,
Self Financing Courses
Class: SYBMS Semester: 3
Strategic Management
Name of the Subject:
Name of the Faculty: Prof. Taqdees Shaikh

McKinsey 7s model
McKinsey 7s model was developed in 1980s by McKinsey
consultants Tom Peters, Robert Waterman and Julien Philips
It sought to present an emphasis on human resources (Soft S),

rather than the traditional capital, infrastructure and
equipment, as a key to higher organizational performance.
The goal of the model was to show how 7 elements of the

company: Structure, Strategy, Skills, Staff, Style, Systems, and The most common uses of the framework are:
shared values, can be aligned together to achieve • To facilitate organizational change.
effectiveness in a company. • To help implement new strategy.
• To identify how each area may change in a future.
The Mckinsey 7S Framework is an organisation analysis tool • To facilitate the merger of organizations.
Porter5 Forces
Porter’s five forces model is an analysis tool that

uses five industry forces to determine the intensity
of competition in an industry and its profitability
level
These forces determine an industry structure and the level of
competition in that industry.
Five forces model was created by M. Porter in The stronger competitive forces in the industry are the less
1979 to understand how five key competitive profitable it is.
forces are affecting an industry.
An industry with low barriers to enter, having few buyers and
suppliers but many substitute products and competitors will
be seen as very competitive and thus, not so attractive due to
its low profitability.
https://180dc.org/frameworks/ https://www.youtube.com/watch?v=OWwSS6nrfQM
Michael Porter: Five Forces applied to the airline industry
[source: IATA Vision 2050 (pdf)]
BCG Matrix
Boston Consulting Group matrix - and is also the global management
consulting company that founded the BCG matrix, also known as the Boston
matrix or growth matrix - market share.
The BCG Matrix has been used since 1968 to help companies better
understand their best products and assist businesses in business model
analysis.
Quadrants:
• Low Growth, High Share. Companies should milk these “cash cows” for cash
to reinvest.
• 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
BCG Matrix
https://www.garyfox.co/bcg-matrix-guide-examples/
https://www.conceptdraw.com
GE 9 Cell
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.
The vertical axis denotes: Horizontal axis represent:
Industry attractiveness indicates how hard or easy Along the X axis, the matrix measures how
it will be for a company to compete in the market strong, in terms of competition, a particular
and earn profits business unit is against its rivals.
 Long run growth rate  Total market share
 Industry size  Market share growth compared to rivals
 Industry profitability: entry barriers, exit barriers,  Brand strength (use brand value for this)
supplier power, buyer power, threat of substitutes
and available complements (use Porter’s Five  Profitability of the company
Forces analysis to determine this)  Customer loyalty
 Industry structure Your business unit strength in meeting
 Product life cycle changes industry’s critical success factors (use
Competitive Profile Matrix to determine
 Changes in demand this)
 Trend of prices  Strength of a value chain (use Value Chain
 Macro environment factors (use PEST or Analysis and Benchmarking to determine
PESTEL for this) this)
 Seasonality  Level of product differentiation
 Availability of labor  Production flexibility
 Market segmentation
https://www.youtube.com/watch?v=jHDLTymju4Y
Modes of Strategic Decision Making
Modes of strategic management are
• kinds of approaches taken by managers in formulating and
implementing strategies.
• They address the issues of who has the major influence in the
strategic management process and how the process is carried out.
• The mode selected is likely to influence the degree of innovation
that occurs within the organization.
1. Entrepreneurial Mode
Strategy is devised by one thoughtful/ powerful leader by taking

• Apple Computer, Inc. (now
bold decisions
Apple, Inc.), under the
The primary focus is on opportunities and not on problems leadership of Steve Jobs
The strategy is guided by the founder’s long term vision of the

business • Biocon India founded by
Kiran Mazumdar Shaw
The dominant goal is growth of the organization
The dominant goal is the growth of the organization. • Byju Raveendran is the
founder of edutech start-up
The disadvantage of this mode is that it does not consider Byju's
problems that may arise during strategy implementation.
• Air Asia, founded by Tony
The advantage is the speed with which a strategy can be Anthony Fernandes
formulated and implemented.
2. Adaptive Model
London based Grand Metropolitan

The UK-based grocery retailer PLC purchased Pillsbury, including
Tesco continually performs the Burger King Chain,
detailed analyses of the purchase the chain was plagued by constant
patterns of the more than 13 turnover, marketing problems,
million members of its loyalty- inconsistent service,
card program. Its findings enable and angry franchisees who
Tesco to customize offerings for frequently told Pillsbury what to do.
each store and each customer Grand Metropolitan
segment and provide early is now working to put the chain back
warning of shifts in customer on track through a strategy that
behavior. They also supported the emphasizes,
development of Tesco’s online doing “whatever it takes to create a
platform positive, memorable experience.”
Planning Model
This decision-making mode involves the systematic
gathering of appropriate information for situation
analysis, the generation of feasible alternative
strategies, and the rational selection of the most
appropriate strategy.
It includes both the proactive search for new

opportunities and the reactive solution of existing
problems
Logical Incrementalism
• In this mode, top management first develops reasonably clear idea of the corporation's mission and
objectives.
• In its development of strategies, it chooses to use
• “an interactive process in which the organization probes the future, experiments and
• learns from a series of partial (incremental) commitments rather than through global formulations
of total strategies”.
• Thus the strategy is allowed to emerge out of debate, discussion, and experimentation.
This approach appears to be useful when:
• 1. The environment is changing rapidly,
• 2. It is important to build consensus, and
• 3. Needed resources are to be developed before committing the entire corporation to a specific strategy.

3.1 Strategy Implementation

Uploaded by

Copyright:

Available Formats

3.1 Strategy Implementation

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

3.1 Strategy Implementation

Uploaded by

Copyright:

Available Formats

CHETANA’S

H.S. College of Commerce and Economics,

Class: SYBMS Semester: 3

Name of the Faculty: Prof. Taqdees Shaikh

It sought to present an emphasis on human resources (Soft S),

The goal of the model was to show how 7 elements of the

Porter’s five forces model is an analysis tool that

It is a framework that evaluates business

Strategy is devised by one thoughtful/ powerful leader by taking

The strategy is guided by the founder’s long term vision of the

London based Grand Metropolitan

It includes both the proactive search for new

You might also like