Executing Organization Strategy

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Executing Organizational Strategy

An execution of strategy in an organization usually starts with building the organizational requirement. These are the bits required to sustain the organization and so they are very important in analyzing the strength or the competitiveness advantage and they to be put into use. Resources are the basic tenets to the survival of the organization and so they must be identified to plan the organizational strategic thinking. Money is one of the resources to acquire the raw materials, which will be used in production. It is used to pay the labor for production among other things. In addition, it is used in securing the premises for production, which will host for the store of goods. The next resource for production is labor. Specific skill for each production to come with a complete set of product is crucial since you require passionate individual to come up with the best product. Since skills vary in individuals, sizing up people is necessary for the growth of the company to maximize their potential.

The organization should be aware of all the raw products it requires before production commencement and this will be important to maximize on time management. Goods once manufactured should be easily available in the market for faster return so that the organization can plan a head on other schedule. Competitors are also available so, once a product is available in the market it should be on steady supply to provide convenience to the customer in that they do not shift loyalty to other brands available (Wolfe, 2003). What does the researcher mean? It is to maximize on returns as quick as possible to the organization. Some other resources such as fleet of transport are important since it will cut cost on the transportation cost to the market where necessary. If need be, for a hire the organization chooses the least available cost which is convenience to delivery on time for the products to the market. Challenges that are encountered in such good plans include run out of cash flow in production among others. This usually leads to halt in organization production hence low returns because of sales turnover reduced. Hence, the finance department should research sources of cash. Major sources of finance include bank loans or draft, selling of equities to other shareholders at reasonable price so as not to undermine the company profitability. Employee turnover especially skilled ones are a major setback to growth in competitive advantage more so if they go to the competitor.

The human resources department should ensure retention and attraction of the best skill set to join the organization for full realization of its goals. For the best sales turnover, sales team should be informed on market information to capitalize on the sales strategy they have in place since this provides for the cash flow in the organization. Cash flow is necessary for planning of the organization using its own resources to cut on borrowing cost. The organization needs technological advancement in all its process of production to accelerate profitability.

Technology usually cuts the cost of labor in the organization. For a marketing department, they use the internet to sale of their products. Internet cost is affordable and a wide audience of customer is already available for the products. Generation of advanced marketing like adds on social charts are at some extent costly, which is neither a good option nor advisable since you neither sure of the return on such an investment. Using social media sites to prospect customer is necessary to actualize on the sales target since the payment platform and delivery of goods can be done in liaison with the relevant delivery companies established all over the world.

The organization should be prepared to avoid lawsuits from other organization from infringement of intellectual property hence it will be prudent enough to protect its own intellectual property and license it to strengthen the financial position of the company. One major boost to the company’s growth is relationship with other stakeholders in the industry. It is noted that since the organization cannot provide all the requirement to its growth partnership to other organization to provide necessary materials like the cash flow from the bank, raw materials for production from supplier efficiently for a timely production and delivery of goods and services. Since employees are the core driver to the organization, it is preferable that they have incentives to motivate them achieves goals set. This would range from salary increment to promotion.

Corporate Culture

A corporate culture that embodies the organizational values is necessary since this is the motivating culture or the drive behind the brand. A culture that ensures hard work in the organization thrives in such that the work the employees undertake is passionately done. Once the right skill set is combined with the organizational culture, it bonds to produce something intangible. Once the culture begins from the top at the management level of senior employees it is bound to transcend to the bottom where junior employees will pick up the habit. A company’s culture is bonded towards its employees and it exists to its customers. Culture within the organization attracts certain level of clients and skill set. It is very important to associate with a culture that drives the company’s goals towards attainment of its vision. An individual culture of discipline in each employee makes him or her respect the organizational ethics. Discipline is paramount than the rest of other values would have to follow since it makes employees obey certain set of procedures and timelines set.

Passionate individuals can do more than they are required to do. These employees would labor in obscurity and over time just to meet the company deadline. Their drive is inside them to fulfill certain task ahead of them. Towards this, it is important to identify ourselves with certain characteristics that will keep the organization as a team. Teamwork provides a pool of resource for shared ideas and problem solving such that the ideas pitched are refined to perfection. Great teams solved myriad of challenges and for great success, there was a team behind the idea to make it through. In teamwork, resilience is supported since no other member would want to let others down no matter how the challenge is difficult. Employees will go through it helping one another to realize their dream. Employees identifying themselves with certain culture as teamwork and discipline increases morale since these are societal values shared for prosperity of individual career or growth.

Managerial Components used in the Strategy Process to Support the Culture.

Skill is important in development of an organization. To have the right skill for a specific task is half the project done. In the department of human resource that sizes up employees, it ensures everyone understands the spirit behind the product development. Unit managers should be able to command the hierarchical chain to drive the organizational values and meet its goals and vision (Thompson, 2009). A good-executed culture is translated to output hence growth. Since the managerial support team is skilled, it will drive the company’s culture without hiccups. For internal leadership to steer the organization to a certain culture, there must be incentive. Such incentives are the sacrifices the company is willing to make to ensure a smooth flow of and genuine execution of its principles. The other thing is the promotion to certain position or even creating certain position to hierarchy level to give morale and a sense of belonging to the company.

Moreover, for a proper management, there must be an open manner on how the company executes its task. These procedures provide the employees with relevant information to follow certain given instructions within the organization. It also provides an open organization boost loyalty of the employees and the customers since they believe there products are of good faith and safe to their consumption. In order for an organization to achieve something, there must be a good way to handle information from inception to execution and it must be time bound. Nevertheless, all employees should be aware of the open system of execution where everyone is open to one another and willing to listen to ideas.

In addition, business practices are necessary for any organization to succeed. These are values like honesty in reporting to the taxman what they ought to tax instead of hiding the accounting books to come up with less figures or avoiding tax at all’. If it does avoid paying tax, it loses its cultural value to its employees who would in turn sue it or become demoralized by such ethics. Prompt payment of employees salaries at due date, paying organization bills on time are some of the best practices that would strengthen the culture of the company. A company that treats its employees with dignity and care deserve better treatment like that given co-founders’ and shareholder. Another thing that would improve the employees’ morale is a good and respectable company’s culture.

Nevertheless, by allocating a substantial amount of money to provide for execution of the organizations operations, the organization is flexible to fulfill its operation and to achieve some of its goals to move forward in the competitive market. Again, time is translated to money hence the production cost. An organization should be willing to use any available resources the company provides to make their goal come true and to realize its potential. For a company to have a competitive advantage over its other industry player, it must be efficient with resource usage and timely execution, which comes from discipline and passion work.

The capacity of a firm is the ability of an organization to perform some activities proficiency such as good marketing department over its competitor to achieve its goal, which is to maximize output on production cost. In addition, the best team to hire was more appropriate in all the key areas hence capacity capabilities. The production department had to be efficient on utilization on resources provided by the company hence a skill set above average and proper management to ensure the quality product on output from production. For this to be achieved, there must be thorough scouting for the best skill set, which will take keen look at individuals perspective to deliver in the organization.

Responsibility Centers and Balanced Scorecards

A balanced scorecard measures a firm’s optimal performance by placing a balanced emphasis on achieving both financial and strategic objectives. It also avoids tracking financial performance and overlooking the importance of measuring whether a firm is strengthening its competitiveness and market position. Nevertheless, tying values to a balanced score card could be the way to make good intentions and more profitable. This is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic environment and social developments.

Additionally, it envelops a more extensive perspective of corporate values and concerns including notoriety, transparency, social, sway, moral sourcing, productivity and common social order. The open doors for the obligation focuses are to adjust buyer and representative qualities with corporate system to create long haul aware profits. An adjusted scorecard is great situated to help an information building exertion to help associations make their qualities and dreams an actuality. It empowers people to settle on choices day by day based upon qualities and measurements that could be intended to help these long haul profits yet centered key budgetary and non-monetary markers.

A balanced scorecard is essential in articulating strategy, communicate its details, motivate people to execute plans and enable executives to monitor results. The organization had to focus on present strategy to evaluate if it is working from a qualitative approach. This includes completeness, internal consistency, and suitability to the situation based on a quantitative approach strategic decisions and financial output the strategy is producing. The organization had a stronger overall performance that led to less demanding approach and to radical change in strategy.

The organization had to triumph the rival industry player who provide the same product and create a competitive advantage to benefit their business. These are environments like customer rewards scheme to attract more and retain the loyal ones who would supply more stable cash to the company. The company had to battle this by pricing the goods at reasonable pricing to be able to target a large audience of customers who would in turn market for company the same brand hence cutting on advertisement cost. The company had to be keen on its strength such as its financial capability to be able to implement its project timely.

One of the weaknesses was on transportation cost, which was very costly to the financial growth. Moreover, time is another factor that is effective to production because it relates to money. When the delivery of goods and services is delayed, the customer switches to other brands, which hurt the company a lot. Therefore, by getting the customer back on track to the companies’ chain of products will be a challenge because of inconvenience it has caused such that they do not want to be in that situation again. Another factor that can see the growth of the company is by being better in pricing that enable it to sign up more customers who would turn loyalty to us for progress of the company. The regions it set foot on with its products will ensure that they get a sizeable number to break even in their stores. Therefore, their reputation is build quickly. The other thing is that the shareholders confidence in the industry is build since they provide equity in times of challenge.

The managerial department has been on the lookout for any technological advancement to help on lower production cost and partnership with other players in the industry and to help advantage on production capacity. The other important factor is collaborating with other organization to provide supply on the raw materials as it emphasize on production and sales that relieves the organization strain in labor cost. Skilled marketing is essential in focusing on market intelligence to actualize on sales goals and delivery of company targets. It also promotes buying other company to cut on overseas cost as long as it protect our intellectual products is necessary as this lowers on production cost.

The balance scorecard was helpful in a way that it led to strategy build up. It was necessary to look at the risk involved to be able to capture the calculated risk model work force to accelerate delivery in a timely manner. Shareholders being our greatest strength and source of growth since they turn out to be our customers it require them to get a value system on returns on their investment at higher price per share.

The balance scorecard helped in improvement of changing the management handling of certain task like finance and internal management whom it would require to hire the best skill set that drives them internally. With little supervision more work is done and less conflict hence concentration on production to attain the vision of the company. This can be seen in year 15 where the capacity to the plant was added after the management concentrated on delivery after a thorough look out and focus based on the scorecard. At the end of the 17 year, the company had been ranked position 1. Investor expectation was 117, which was the highest in the industry. It had the best in industry score of 100. From year 16, it had a positive change of positive two. Our investors are realistic on the target they set on the company since it is in that the company derives its medium term and long-term plan to manage efficiently on the work available to make an impact in the society. Since then, the expectation has been on a positive trend returns on investment have been positive as envisaged in the industry report.

The company stock price has soared from year 11 to 17. Stock price only rise once the company gains footage in the industry and provides a larger return on investments to the shareholder. The credit rating of the company has been on positive note having skilled financial managers who are willing to make it possible to undertake calculated approach to money use. From year 11 to year 17, it had a grade of B+. From year 11, the image rating of the company’s 70 and maintained a consistency to year 20 this was a positive result to the growth of the company. Image rating is based on a 20% or 20-point. Since the beginning, the company has focused on giving back to the society as a responsibility in improving the brand loyalty. This has turn out to be the best investment in our industry, as more customers believe in our work helps in the society in a positive way.

The company is not left out in award category as it was given the gold star award for corporate citizenship. Beginning in year 14 the world council for exemplary, corporate citizenship presents a gold star award to the company spending the biggest percentage of its revenues for social responsibility and citizen initiatives. Bulls point award for accuracy forecasting total revenues, earnings per share and image rating. One bonus point added to any company’s game to date score when actual performance on total revenues and earnings per share vary by no more than 5% from projected performance and if actual image rating verifies by no more than 4 points from the projected image rating. Leap frog award for most improved overall score from current year to current year. Beginning year 12 one bonus point is added to the game to date overall score for the company whose current year overall score improved over prior year. If all companies fail to improve, their scores from one year to the next no leap frog bonus awarded.

The industry overview notes in the material category higher than normal 74.4% superior materials usage lead to superior materials that is 48.8% above the base and standard materials prices that is 12.2 below the base. In the year, 17 total pairs of 93824 are produced before rejects. Pairs rejected overall are 3.9%. The net year production at year 17 was 90177, which is a total pair after rejects available. Superior material usage was up by 0.1 points over year sixteen. Capacity utilization, which is branded plus private label utilization, was down by eleven point six points from year 16. Report from the branded warehouses end of year 16 inventories 22,681 unsold pairs from year 16 pairs cleared in all regions 1334 average inventory clearance of 5.9%. Beginning year 17 inventories in all regions there 21347 incurred a 1- star s/q rating penalty. New pairs produced in year 17 and this was the production shipped from plants. For that reason pairs available for sale in year 17 was 15% higher than year 17demabd. Branded demands sales in the year 17 actual demand 05 greater than projected demand for year 17 due to increased competitive intensity. The required year 17 ending inventory levels companies had to maintain in order to achieve delivery times quicker than four do. Global demand from year 11 to year 15 is expected to grow at a rate of 7 to 9 % annual growth during year 16 and 20. The projected growth rates are not the same for all four regions as indicated in the players guide. Actual demand and growth may vary from the forecast due to increase and decreases in competitive intensity industry wide. Excess supply of 21.4% is likely to intensify competition in year 18 until market growth absorbs the excess. In the short term, construction of new production capacity is not needed.

Simulation

At the beginning of the first four years, the organization had tremendous challenges ranging from resource management to challenging market competitors who had a mark in the industry. The organization had to hire the best to realize its full potential of growth from brand existence in the market to financial strength. Since it is a production line, it had to hire experience over skill to cut cost on the training of the new employees training. From the finance department who will advice on how to get the best interest rate market is offering to marketing department who will actualize sales as fast as possible to gain a market share in the industry. At the beginning, the resources limited since the sources of finance like the bank and angel investors would not take a bet on the organization because of much risk involved so it had to work on the available resources it had saved at inception (Learning, 2009). During such time the social media was picking up, it was not ubiquitous as of today, and hence the cheapest form of advertisement to a public. With such challenges, the company had to come within genuine way to work on growth strategy for survival. The greatest potential was on sales to bring in more cash to the company to hire the best human capital with industry knowledge of our products and to retain the best of employees who would opt to leave for better pay elsewhere. In sales, it had to concentrate on our target audience to close the sales.

Prospecting helped the organization know the best clients who would materialize to buy our product and satisfy them to the fullest to make them come for more products. Once they did that, they attracted other potential buyers who would later flock in our stores. This strengthened our financial position in the industry to make the best product that is durable in the market. With financial position it made available our research team could innovate the best product once it offered to the market strengthened our brand with our customers. With this kind of steep growth, the company had to be very prudent on finance to keep the cost of management at manageable level for any shock in the market in case their goods fail to have more buyers in the market. Again, they can be able to make other product at our own expense get them ready to the market on time. With the cash flow, it hired the industry expert who would advice as on key important sectors to have a competitive edge in the market like the finance department, sales department and the production department.

Other cost cutting measures it undertakes are the buying of our own premises to loiter on rent since this is a long-term project and having our fleet of transportation. As it headed towards the close of the fourth year, it expanded on our production line in terms of goods to manufacture because of a wider market share it serving. Having prevailed the earlier challenges most lessons I learnt was to hire the right skill set of employees who would make all the necessary effort to come up with ideas to steer the organization toe=wards its goals from sales department to production department. Time management is important since goods taking longer to reach the consumer increases the production cost since it delays the funds so this comes to a point of having the organization fleet of transportation, which is timely and till managed.

For an organization achievement over its competitor, it must be innovative and have a competitive advantage area that is important to be exercised. Creation of something new that is used by consumers brings in more customers if your research on the market was done in an appropriate manner to deliver a product that customers required to manage their daily routine. To achieve such a goal in the organization there are a certain basic of elements that are emphasized by the team leaders (Thompson, 2009). The team must be hardworking in an agreed certain initiative to be undertaken by the organization, time management and research on the ideas presented. During the innovation process there are many challenges involved and so the team must maintain its persistence in undertaking the procedure and to be able to experiment to com e up with the solution the befits its market and consumers in general (Wolfe, 2003). Curiosity to experiment on ideas to see on what is the output this was also contributing to the development of teamwork to innovation.

During the innovation process, money provided from sales is invested back in the company with the hope it will provide returns to capitalize on market consumption once the goods are available. Such is the time to accept ones ideas during the team’s work, to test them, refine them and correct where possible to come up with the best procedure for an experiment. This will make for a better product that is outstanding in the market.

For an innovation to be an excellent research there must be teamwork and to ensure a peaceful co- existence among the team and the intact bond within the members the motivating factor there should be a goal of reward after completion. This would require the company to allocate resources to incentivize members within the team members. After the completion of a task and successful execution of a project, the team will be given bonuses and a time off since it is believed the activity consumed much of their time o be with their family and loved ones. This increases loyalty towards the company by the employees.

To evaluate and support innovation, there must be set of structure appropriate to make it possible like, arranging a team in groups, giving realistic deadlines to come up with certain research work to be finalized and the discipline is to work within the period. Barriers to innovation include untrustworthy individuals who the team believes only profits from their work, required skill set to perform the task, respect of opinions and execution of the best strategy without fear of failure. To avoid these challenges the team emphasized on a group set of conduct to provide it with necessary handle of these barriers to overcome them and come up with the best product. To ensure unity, the team had to be willing to listen to the team leader who would in turn ensure discipline is maintained for smooth process.

Moreover, they should also be willing to change their ideas since time faces some of ideas out so; these enable refinement of each pitch on ideas. To be able to accomplish their plan, the team had to be taken through the company’s initial target of the finished product. Therefore, they had to work for a finished product in mind provided for a preview behind their conscious level to ensure the product is up to standards as prescribed and avoids lawsuits with the relevant industry players, which is very costly to the firm’s financial strength (Learning, 2009). A proven management record at the best approach is to ensure proper care of the employees who work for the company. The best skill set delivers a master class of product, which will attract buyers to maintain the best skill in the industry there must be incentive to the individuals who would in turn translate their loyalty to production.

References

Learning, A. f. (2009). Simulation & games. Simulation and Gaming, 239-345.

Thompson, A. A. (2009). The business strategy game : A global industry simulation, player’s manual. Boston : Irwin McGraw Hill.

Wolfe, J. A. (2003). The global business game : a strategic management and international business simulation : player’s manual. Mason, Ohio : Thomson/South-Western.