Page 49 - Strategic Management

Strategic Management 10 Strategy Implementation

Abilities and resources (what the organisation realistically can do) - an organisation might not be able to capitalise on a
particular opportunity eg, market demand, if it does not have the necessary competencies or resources.

Responsibility to society - what the organisation should do.

Managerial interests and desires (what the organisation wants to do). An organisation is unlikely to succeed if its strategic
plan is based on managerial interests without reference to opportunity, competence or societal responsibilities.

Integrating these four components of strategy formulation is a delicate and complex task. Being aware of them is an
important first step; reconciling their implications and combining them into a viable strategy is more difficult. An
organisation may not be able to capitalise on an environmental opportunity, such as market demand, if it does not have
the necessary competence or resources. Similarly, an organisation is unlikely to succeed if its strategic plan is based on
managerial interests, without reference to competence, opportunity or societal obligations.

10.3 Managing change

This is a huge topic but here are some of the main issues when moving the strategy to adapt to the environment..

Transformational

Flux
Incremental

Continuity
Fig 11.3 Change types

10.3.1 Continuity

Daft (1998) describes several features of this kind of gradual change over time:

• Continuous progression.
• Maintains equilibrium.
• Affects only one organisational part.
• Effected through the normal structure.
• New technology.
• Product improvement versus new product which create new markets.

10.3.2 Incremental or Step change
‘Step change’ describes a situation where the trend line for a particular factor stops becoming smooth and there is a
significant and unexpected jump in direction upwards or downwards.

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