CHAPTER 5

STRATEGY
IMPLEMENTATION
OBJECTIVES:
After reading the chapter, the learner will
be able to:

•Differentiate the difference between

business policy and strategy;

•Identify and enumerate the levels of

strategy; and

•Identify the strategies for the

different functions in the organization.
•A strategy can be defined in
many perspectives. A manager
can be define it as a strategic
goal.

•It is a battle plan

•A technique or a tactic in the art
of war
•A method of facing competition
•A set of integrated decision.
The STRATEGY Greek word is
Strategos, means “the art of the
general”.

Strategy is not realized all the time.the

conditions in the environment may
affect an intended goal or objective to
strategy.

Employees may lack the needed

commitment to make the strategy work.
The entire organization may resist the
change at the last minute.the list goes
 STRATEGY
IMPLEMENTATION
Strategy Implementation:
• Sum total of the activities
and choices required for
the execution of a
strategic plan.

• Process by which
strategies and policies are
put into action through
programs, budgets, and
Implementation Process
Questions:

• Who are the people to

carry out the strategic
plan?
• What must be done to
align operations with new
direction?
• How is work going to be
LEVELS OF STRATEGY
3 different levels
• CORPORATE STRATEGY
• BUSINESS STRATEGY
• FUCTIONAL STRATEGY
CORPORATE STRATEGY
It comprises of decisions
that give the organization
what industry it will be and
not be in and how it will
allocate specific resources.
here are the consideration to be followed
in corporate level strategy :

SCOPE: it means identifying the

overall goals of the corporation and
the types of business in which the
companies should get in.

ACCESS TO COMPETITION: It
means identifying and defining
where the company should be
accessible.
MANAGEMENT OF
RELATIONSHIPS: the strategies
should be shared and coordinated
to all the employees.

MANAGEMENT PRACTICES: A
company should decide how the
employees are to be governed in
the achievement of the corporate
objectives.
BUSINESS STRATEGY

• It is a set of decisions that

provides ways on how the
organization competes in the
industry it chooses to be in and
eventually sustain a
competitive advantage.
• Business strategies are basically
positioning strategies,making the
companies secure a foothold in
the market.

• It also positions the brand and

enables awareness to the
customers.It also instills loyalty
on the brand.
FUNCTIONAL STRATEGY

• it comprises of decisions the different

functions of the organization that
support the business strategy.These
functions include
marketing,production,finance,researc
h and development,and human
resources.
• also called Operational
strategies,they traslate the
strategies in the corporate and
business levels to departmental
or functional units.

• They are transformed into

specific processes,human and
other resources.
FUNCTIONAL STRATEGY IN
MARKETING
MARKETING
• always described as the
process of creating and
satisfying customer needs and
wants through products and
services.

• encompasses a wide range of

basic fuctions,all which
provide customer satisfaction.
CUSTOMER ANALYSIS

to be able to define the target

market ,it is important to analyze
the personalities,economics
status,gender,and other
drmographical aspects to come up
with strategies that would be
essential in setting up overall
company goals,objectives as well as
its mission and vision statements.
SELLING OF PRODUCTS AND
SERVICES
• It is not just selling the product or
service. It also includes other tasks that
will help in selling.
• tasks like advertising and promotion
are crucial especially if there are new
products.
Forms
• Media(print,television,radio and
film)
• Brochures
• Flyers
• Tarpaulins
PRODUCT OR SERVICE
PLANNING

• The most popular and most effective

option is test marketing.

• It predicts future sales of new

products and services.

• marketers should be able to plan out

carefully the segment and the
locations of where to conduct the
market test.
 • Test marketing eliminatesbthe
posibility of heavy losses or possible
product failure.

• Product and service planning also

includes brand positioning and
packaging.
THE FOURTH FUNCTION IN
MARKETING IS THAT PRICING.

Major Considerations:

• The Capacity of the consumers to

buy.
• The Prices of raw materials in
producing the product.
THE FIFTH FUNCTION IS
DISTRIBUTION
This includes locations of retail sites,sales
Territories and channels,transportation
carriers,wholesaling,and retailing.
Small-scale manufacturers would opt for
distributors because of financial
constraints attached to distributing.

Medium-to-large-scale producers,on the

other hand,use intermediaries to divert their
resources in the improvement of their
production processes.
 MARKETING RESEARCH

The systematic gathering and

analyzing of data that relates to
the marketing of goods and
services, There are various ways
in doing marketing research.
OPPORTUNITY ANALYSIS

It is equivalent to cost
benefit analysis. companies
obviously determine
whether benefits outweight
the cost.
FUNCTIONS IN FINANCE
INVESTMENT DECISION
• Capital budgeting
• The allocation of resources of
resources including capital to
projects,products or services
and assets.
• This is an efficient placement
of capital to various means.
FINANCING DECISION

• Examines and finds the best

capital structure for thr
organization.
• It determines how the firm
can raise capital such as
selling of assets,issuing stock
or obtaining a debt facility.
DIVIDEND DECISION

• The right period or time frame

by which the organization will
issue a percentage of income
to through dividends.
• The issurance of stocks and
the earnings retained to the
firm.
FUNCTIONS IN PRODUCTION
PROCESS

This includes various

activities such as the use of
facilities,production flow
analysis, and physical
distribution system.
CAPACITY

The determination of optimal

output levels for the firm
without going over or under
production.To achieve this,the
company makes a forecast and
schedule production operations.
INVENTORY
• Manage the raw materials,work in
process and finished goods
inventory.

• Summarizes the size, quantity and

period of orders.

• workforce decisions include the

management
skilled,unskilled,clerical and
management employees.
• should be appropriate
motivation techniques,job
design,job enrichment,among
others.

QUALITY
It denotes the production of
quality goods and services. This
includes testing,quality
assurance, and cost control.
IMPLEMENTING STRATEGIES
AND E-COMMERCE
E-COMMERCE

Essentially changed the way

business is conducted. There is.
constant restructing of business
processes to enable companies to
attract more customers via the
worldwide web.
• Advantage of the internet is the ease
for customers to compare price.

• Strategies that a company can

implement is through product bunch.

• Another Strategy is the introduction of

niche products.

• Customer-centered Strategy enables

a company to pull out information from
customers to improve the company's
performance
• Another Strategy is the expansion into
related product lines.

• TWO STRATEGIES
 PRICING LINING refers to the practice of
offering the same products at price points
depending on consumers needs.
 SMART PRICING refers to the practice of
charging various price from one market to
another depending on the conditions of the
market.
 COST LEADERSHIP in a particular market
or industry.
LONG QUIZ
1.It means the art of the
general
2.It is the Sum total of the
activities and choices
required for the execution
of a strategic plan.
3.It comprises of decisions
that give the organization
what industry it will be and
not be in and how it will
4.It comprises of decisions the
different fuctions of the
organization that support the
business strategy.These fuctions
include
marketing,production,finance,resea
rch and development,and human
resources.
5.This includes locations of retail
sites,sales Territories and
channels,transportation
carriers,wholesaling,and retailing.
6.It is equivalent to cost benefit
8.Examines and finds the best
capital structure for the
organization.
9. It denotes the production of
quality goods and services.
10.The practice of offering the
same product at price points
depending on consumer needs.
11. The practice of charging various
price from one market to another
depending on the conditions of the
market.
12.It is a set of decisions that
provides ways on how the
organization competes in the industry
it chooses to be in and eventually
sustain a competitive advantage.
Thank You for Listening