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Implementing Strategies : Strategic Action Plans & Strategic Annual Action Plans

Implementing Strategies : Strategic Action Plans & Strategic Annual Action Plans. Introduction. The chosen strategy cannot be implemented if the strategy is not transformed into tactical strategies (i.e. actions that can be carried out).

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Implementing Strategies : Strategic Action Plans & Strategic Annual Action Plans

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  1. Implementing Strategies : Strategic Action Plans & Strategic Annual Action Plans

  2. Introduction • The chosen strategy cannot be implemented if the strategy is not transformed into tactical strategies (i.e. actions that can be carried out). • For strategies to be easily implemented, they must be changed into actions that can be measured.

  3. Three Steps in Developing a Strategic Action Plan • Conduct environmental scanning • Match scanning elements • Select the appropriate strategy • Develop the strategic action plan Step 1 Environmental Scanning (input Stage) Step 3 Decision Stage Step 4 Action plan Step 2 Matching Stage

  4. Strategic Action Plans • Action plans are specific steps the division plans to take to achieve the division’s strategic goals. • The first step that a company must do once the suitable strategies are chosen is to prepare the strategic action plan. • The planning period is usually 3-5 years. • Eg: a strategy chosen for implementation could be: The company needs to expand through take-over and through joint-ventures with an international company and through increased market share.

  5. Strategic Action Plans (con’t) • To prepare a SAP, all strategies must be translated into objectives. • Objectives are the specific results that an organization wants to achieve. • Objectives are important for organizational success because • They provide the direction for the organization • They aid in evaluation (i.e. serve as standards of performance) • They represent the basis for resource allocations

  6. Strategic Action Plans (con’t) • Characteristics of effective objectives are SMART: • S= specific • M= measurable • A=achievable • R= realistic • T= Timely

  7. Therefore the 3 year strategy: The company needs to expand through take-over or through joint-venture with an international company and through increased market share. Can Be Transformed into the objective strategy: The company will expand its market share to 40% within 3 years and take-over of 2 local companies and joint venture with an international company.

  8. Strategic Annual Action Plan • SAAP is for the first year. Therefore the 3-year objectives in the strategic plan need to be broken down into 1 year. • The annual objectives are known as tactical objectives. • The tactical objective for the example: • The company will look for 2 local companies to take-over and form a joint venture with an international company. • The company will increased its market share through market penetration and increased output.

  9. A: 3-year strategy: The company needs to expand through take-over and through joint-ventures with an international company and through increased market share. B: Objective Strategy: The company will expand its market share to 40% within 3 years and take-over of 2 local companies and joint venture with an international company. C: The tactical objectives: • The company will look for 2 local companies to take-over and form a joint venture with an international company. • The company will increased its market share through market penetration and increased output.

  10. Strategic Annual Action Plan • Steps in developing a SAAP Column 1: Break the annual objectives into quarterly objectives (i.e. into objectives for a 3 month period) Column 2: Tactical Actions List the activities that must be carried out to achieve the quarterly objectives in Column 1.

  11. Strategic Annual Action Plan Column 3: “Date” column • Put in the deadlines for each tactical action. • The dates ensure that all tactical actions go as plan as well as acts as a control system for management so as to prevent delays. Column 4: Resources Needed • State the resources needed. • Resources can include: $$$; manpower, machinery, materials, expertise, professional services, land, raw materials

  12. Strategic Annual Action Plan Column 6: Person-in charge • List the person(s)- in- charge for each tactical action. • This ensures commitment from the staff Column 7: Overall Person responsible • List the person(s) responsible for the overall achievement of the quarterly objectives

  13. Example: SAAP to increase market share through market penetration and Increased output

  14. Example: SAAP to increase market share through market penetration and Increased output (con’t)

  15. Example: SAAP to find 2 local companies to take-over and form a joint venture with an international company

  16. Example: SAAP to find 2 local companies to take-over and to form a joint venture with an international company (con’t)

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