Chapter 3 Strategy Implementation

This part of the course examines what is often called the action phase of the strategic management process: implementation of the chosen strategy. Up to this point, three major phases have been covered: strategy formulation, analysis of alternative strategies, and strategic choice.
Even after grand and business strategies are determined and long term objectives are set, the strategic management is far from complete. While these phases are important, they alone cannot ensure success. The strategy must be translated into concrete action, and that action must be carefully implemented. Otherwise, accomplishment is left alone to chance.

The tasks of operationalzing, institutionalizing and controlling the strategy still remain. These tasks signal a critical new phase in the strategic management process: translating strategic thought into strategic action. This chapter discusses key aspects of the implementation phase of the strategic management.

3.1. Operationalizing the Strategy: Annual Objectives, Functional Objectives, and Business Policies
Shifting from formulation to implementation gives rise to three interrelated concerns. These are the three interrelated stages of successful strategy implementation. 1. Identification of measurable, mutually determined annual objectives. 2. Development of specific functional strategies. 3. Development and communication of concise policies to guide decisions.
Annual objectives guide implementation by converting long-term objectives into specific, short-term ends.
Functional strategies translate grand and business strategies at the business level into current action plans for subunits of the company.
Policies provide specific guidelines for operating managers and their subordinates in executing strategies.

3.1.1 Annual Objectives
A critical step in successful