It originally introduced as an accounting analysis to know separate steps in complex manufacturing process in order to identified where cost improvement is made or value creation is possible. Culture affects not only the way managers behave but also the decisions they make about the organization. Every company has its own organizational structure. Each has its business philosophy and principles and practices. Therefore corporate culture need not be identical in all organizations. Corporate culture builds around such principles as listening of the customers, encourage employees to take part in decision making process and also for take pride in their work.
Corporate culture as strength and as weakness are describe as follow:. An organizational structure is more strong when it conduct its business according to explicit set of rules and principles which are communicated by the management to employees and which are shared across the organization.
In this employees do not have any type of commitment and loyalty. It can stop the implementation of the strategy.
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The planning is also done differently in it from other organization. The most important characteristics are i is a single business or collection of related businesses ii has its own set of competitors iii has a manager who is responsible for planning and performance. The SBU is given the authority to make its own decisions within corporate guidelines. The advantages of SBU are as follow:.
Strategy Implementation - Meaning and Steps in Implementing a Strategy
Strategic leadership is the ability to influencing others to voluntarily make decisions that enhance long term success while maintaining short term financial stability. Managerial leadership is different from strategic leadership as it is concerned with short term, day to day activities. There are two basic approaches of leadership are as follow:.
It may be appropriate in turbulent environment in the industries at very start or end of their life cycle. It is very important when there is need to inspire the company for major change. It offers excitement and personal satisfaction. It also motivates to employees for increasing their self confidence and also promote innovation throughout the organization. It may be appropriate in settled environment. A strategic manager has to play many roles in pushing for a good strategy execution, which describe as follow:.
Businesses are required to make modification in the existing strategy or implement new strategy according to change in the environmental forces. Strategic change is complex process and it involve a strategy which focused on new products, markets, services and new ways doing business. There are three stages of strategic change which are describe as below:. So the management must unfreezing the situation so that everyone is willing and ready for change. This can be possible by making announcement, held meetings and promoting ideas throughout the organization. There are three methods for this i Compliance ii Identification iii Internalization.
Change of process is not one time process but a continuous process due to changing environment. The above three processes are cyclical one and remain continuously in action. Operational control is focus on individual tasks where management control is focus on all business functions.
When compared with operational management control is more inclusive as it include activities of whole department or division or even for a whole organization. In the organization many of the controls are in the nature of operational for which a set of standards, plans and instructions are formulated. On the other hand the basic objective of management control is to achieve the short term or long term goals of the organization in an effective and efficient manner.
Strategic control are basically focuses on two questions i the strategy is being implemented as planned ii the result produced by the strategy are those intended.
Control thus makes a comparison of the organization in terms of its performance — where it is now and where it is expected to be. It also gives a signal to managers for any corrective actions.
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For example; A Courier Service has a performance goal of delivering ; percent of its parcels on time to its customers. The managers can then undertake appropriate measures to correct the problem to raise its delivery-performance over 98 percent. In strategic control, managers first select strategy and organization structure and then create control systems to evaluate and monitor the progress of activities directed towards implementing strategies. Finally, they adopt corrective actions through adjustments in the strategy if variations are detected.
Strategic controls can be both. When proactive, control systems help in keeping an organization on track, anticipating future events arid responding to opportunities and threats. When reactive, strategic controls detect deviations after events have occurred and then dollar corrective actions. Strategic control systems further help managers achieve superior efficiency, quality, innovation and responsiveness to customers.
The difference between operational and strategic control processes.
Strategic managers can measure efficiency by comparing the total inputs with the total outputs how many units of inputs are used to produce a unit of output. Strategic managers create a control system to monitor the quality of products. Financial control systems are concerned with the financial resources of an organization.
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Financial resources are regularly flowing into the organization, and are also flowing out of the organization. Some of the financial resources are held by the organization for internal use or for some other reasons. For effective financial control, they establish financial goals e. The most popular tools of financial controls are budgetary control, financial statements, ratio analysis, and financial audits. Budgetary control is implemented by using a budget, which, is a plan expressed in numerical terms.
Although budget may be expressed in quantitative terms units of output, time etp.
Strategic Control: Breaking Down The Process & Techniques
Managers may develop budgets for the entire organization, or even for the individual departments and divisions! They use the budgets for measuring performance.
https://europeschool.com.ua/profiles/vapidibib/precio-cine-kinepolis.php Budgets also help them in making comparison from year to year and even across departments and divisions. Financial statements mainly include a balance sheet , income statement , cash flow statement , and funds flow statement. Ratio analysis is concerned with the calculation of financial ratios to assess the financial health of an organization.
The important ratios that are usually used as parts of financial control include liquidity ratios, debt ratios, coverage ratios, and operating ratios.