Bhimdattanagar, Kanchanpur

Assignment on: Strategy implementation, evaluation and control, Issues on

Strategy implementation, Evaluation and Control and entrepreneurial venture/small
business and factors affecting success of new venture.

Submitted by: Submitted to:

Mukund Singh Chhetri Asst. Prof. Prem B. Khati

Section- 'A'

R. No. -15
 Topic-1st
Strategy implementation and issues of strategic implementation:
Introduction to strategy:
Hitt, Ireland and Hoskisson - "A strategy is an integrated and coordinated set of commitment and
actions designed to exploit core competencies and gain a competitive advantage."

David- "Strategies are the means by which long- term objectives will be achieved."

Strategies are the means to achieve long-term objectives. It is the potential plan of actions that
includes top management decisions and significant amount of resources. Strategy is likely to be
concerned with the long-term directions of an organization. In addition, it affects an
organization's long-term prosperity, typically for at least five years. Hence, it is future –oriented.
It has multifunctional or multidimensional consequences and requires considerations of both
external and internal factors facing the firm. A strategy may include geographic expansion,
diversification, acquisition, product development, market penetration, retrenchment, divestiture,
and liquidation. In short strategy is a long term comprehensive action plan formulated by top
level management and implemented for a sustainable competitive advantage over competitors.
There are four basic stages/elements of strategy they are as follows:

1. Environmental scanning
2. Strategy formulation
3. Strategy implementation and
4. Strategy evaluation

All the above mentioned stages elements are equally important for the complete and successful
strategic management but we are discussing here about the stage/ element Strategy
Implementation:

Strategy implementation:

Wheelen and Hunger - "strategy implementation is the process by which objectives, strategies
and policies are put into action through the development of programs, budgets and procedure."

The second stage of strategic management, after strategy formulation, is “strategy

implementation” or, what is more familiar to some as “strategy execution”. This is where the real
action takes place in the strategic management process, since this is where the tactics in the
strategic plan will be transformed into actions or actual performance.
Needless to say, it is the most rigorous and demanding part of the entire strategic management
process, and the one that will require the most input of the organization’s resources. However, if
done right, it will ensure the achievement of objectives, and the success of the organization. If
strategy formulation tackles the “what” and “why” of the activities of the organization, strategy
implementation is all about “how” the activities will be carried out, “who” will perform them,
“when” and how often will they be performed, and “where” will the activities be conducted.
Strategy implementation may be defines as the sum total of the activities required for the
successful execution of the strategy. The essence of strategic management lies in strategy
implementation. Hence, strategy formulation and implementation should be viewed as the two
sides of the same coin. Strategy formulation is the planning of work whereas strategy
implementation is execution of plan. In a single word implementation means the change.
Strategy implementation involves translation of strategic thoughts into strategic action. The
translation requires the managers and employees understand the business, Feel as a part of the
company and involve in strategy implementation which affects an organization from top to
bottom and all functional or divisional areas. And it does not refer only to the installation or
application of new strategies. The company may have existing strategies that have always
worked well in the past years, and are still expected to yield excellent results in the coming
periods. Reinforcing these strategies is also a part of strategy implementation.
1. A lack of commitment to the strategy:
As a leader, the sustainability of our organization needs to be our top priority. The
implementation of a long-term strategy isn’t a ‘box-checking’ exercise. It may not be the most
urgent thing on the list on any given day, but it is the most important, and if we’re approaching it
as a "check it off and move on" item, we will fail before we have even started. Strategic planning
is a challenge. It requires a lot of self-reflection. When we question the performance of our
organization, we might have to confront a reality that we do not want to face. This kind of brutal
honesty can help our organization to realign its focus. If we have the ability to dig deeper into
our organization and unearth those ugly truths, we will be able to craft a strategy that aims to
conquer your greatest weaknesses. Self-awareness is an incredible trait for an organization to
have. Knowing what your strengths and weaknesses are will stand you in good stead for the
future. To effectively implement a strategy, we have to be able to commit fully to the objectives.
If we don’t approach our strategy with complete conviction, we can’t expect anyone else within
the organization to believe in it either. we need to give a strategy the time it deserves. A fully-
formed long-term strategy won’t be crafted in the matter of just a few days. It could take several
weeks or months for specific goals and objectives to be outlined. Then, we will have to spend
time with our team to decide how you’re going to achieve those aims. When we first get started,
those initial conversations with senior leaders are going to be messy. That’s simply part of the
process. Everyone in the organization is likely to have their own point-of-view on how a strategy
can be implemented most effectively, with best use of the available resources.

2. Weak Strategy:
The point of a strategy is a new vision. This is an opportunity to create a roadmap with broad buy
in and narrowed focus. There should be distinct milestones, clear timelines, and precise roles for
employees. If taking on a large, company-wide initiative, it is better to start small to ensure goals
are manageable and achievable. From there, resources and objectives can be expanded until the
end result is achieved in the set timelines. Don’t assign fuzzy responsibilities, get caught up in
buzzwords, or overwhelm departments with too much too fast. Ask ourselves, is there a clear
path to the end goal? Are there achievable milestones along the way? Are the obvious challenges
clearly laid out? Are there clear alternatives if a roadblock is met?

3. Creating an environment where your strategy will succeed:

Creating the platform for implementing our strategy requires more than aligning the
organizational structure. That addresses the shape of the organization, but just because your team
is arranged in a way that puts the resources in the right place, it doesn't automatically mean that
the environment is conducive to actually making our strategy happen. There will be key elements
of our organization culture, operating model, etc. that make us who we are as an organization,
which you want to keep and thrive, but don't lose sight of the reason we're implementing a
strategic change in the first place - because of exactly that; something needed to change. Change
takes focus, effort, compromise, and probably getting a few things wrong before we get them
right. So, we need to create an environment that fosters the things we want to keep, and provides
support for change. It's a tough balancing act.

4. Lack of communication:
Communication is a key in the execution of any new strategy. An effective communication plan
must be initiated from the top down. Transparent, honest communication is not only the quality
of an effective organization, but it is a necessary step for any new roll out. Lack of
communication results in disjointed teams and widespread uncertainty. Keeping our staff in the
loop, and be willing to refine and adjust how we are implementing your strategic plan. If we
create an environment in which discussion is invited, and the approach is clear but adaptable, our
implementation will be better prepared for reality. It doesn't mean we have to act on every
opinion, but making the communications a two-way street will pay off.

5. Lack of resources
The most common direct costs of executing a new strategy are associated with the consultants or
board members brought in to plan, execute, and provide training, as well as the cost of any new
associated technology and well trained human resources. This can be prohibitive for a company
of any size, especially small- to mid-sized companies and non-profits. That’s why it’s important
to start small and only expand once initial objectives have been met. Consider the expertise you
already have in-house. Choose a training platform or strategy implementation method that is
accessible, scalable, and can be cascaded throughout the organization. It’s not uncommon for
teams, especially those who have been working together for an extended period of time, to be
resistant to change. And nothing torpedoes the effectiveness of a strategic implementation faster
than a lack of cooperation among teams. Communication clearly from Day 1 each person’s new
role, their importance to the end result, and the ultimate benefit to a change to their own current
routine. Help everyone understand that a little pain now will result in big progress down the line.

6. Acceptance of change –
It's in that balance between valuing change and not constantly changing everything. It's also
about creating that environment where learning from change is part of the culture. The culture of
organization for accountability if no-one feels like they are responsible for accepting and
delivering the change in the organizational strategy it will never support the strategic
implementation.

7. Ineffective training:
A new strategic initiative will never get off the ground without the proper training for employees
who are expected to execute. There are many reasons companies skimp on proper corporate and
learning opportunities for employees, and we broke them down in an earlier blog post. There are
multiple modern options for unobtrusive, yet highly effective training that fit into employee's
busy schedules. Finding the right training option saves money by preventing too much down
time, strengthens skills or teaches new skills, and provides follow up to ensure employees
execute those lessons in their daily workflows. consider Challenge Based Development. CBD
was designed to effectively and scalable roll out training and new strategic initiatives throughout
companies. The right mix of instruction and action help new initiatives well.

8. Lack of follow through:

Truly, the execution of any new strategy is never over. There should be regularly scheduled
formal reviews of the new strategy to review processes, ensure the plan is performing as
designed, and make any necessary tweaks, holding these meetings once a quarter. As such,
training should be included as part of this perpetual process review. Subscription-based training
platforms are the perfect tool to ensure long-term consistency and ongoing skills evolution. This
style of ongoing training is cost effective, team-oriented, and can revolve around a curriculum
that evolves along with the company’s strategy. Know the challenges to avoid the challenges
acknowledging these biggest challenges to strategy implementation and communicating them to
those who are responsible for the dissemination and execution of any new strategy is critical.
Understanding how companies can get in their own way is the key to ensure that we won’t make
those same mistakes, and know how to take corrective action if we do.

The end
 Topic- 2nd

Strategic Evaluation and Control process and strategic issues on

evaluation and control:

Strategic Evaluation:
The process of assessing the implementation of strategy with its standard is known
as strategic evaluation. Evaluate effectiveness of organizational strategy in
achieving organizational objectives Perform the task of keeping organization track
Strategic Evaluation is defined as the process of determining the effectiveness of a
given strategy in achieving the organizational objectives and taking corrective
action wherever required. Strategy evaluation is the final step of strategy
management process. The key strategy evaluation activities are: appraising internal
and external factors that are the root of present strategies, measuring performance,
and taking remedial / corrective actions. Evaluation makes sure that the
organizational strategy as well as its implementation meets the organizational
objectives.

Strategy evaluation is the direction to ensure the proper destination, strategy

evaluation is important to ensure that stated objectives are being achieved. It has
both long term and short term focus. It ensures relevancy of strategy. It provides
adequate and timely feedback. It alerts management to problems before a situation
turns critical. Under strategic management, strategies are formulated under a
number of assumptions. The assumptions may not be valid or relevant due to the
considerable hap between the strategy formulation and implementation this may
also be due to change in environmental components. Hence strategies should be
evaluated continuously.

Control/controlling:
Controlling is the process of taking corrective action if any deviation exists
between the standard and actual performance. It ensures that the organization is
using appropriate strategies to deal with the environmental conditions. Strategic
control is concerned with tracking the strategy as it is being implementation
detecting problems or changes in underlying promises and making necessary
adjustments. Traditional approaches to control seek to compare actual results
actual results agonist standard. The works is done the manager evaluate the work
and uses the emulation as input to control future efforts. In contrast to post action
control strategic control is concerned with controlling and guide is still several
years into the future. Managers responsible for a strategy and its success are
typically concerned with two sets of questions.

1. Are we moving the proper direction?

2. How are we performing?
Strategic evaluation and control take into account the changing assumption that
determine a strategy, continually evaluating the strategy as being implemented and
take that necessary step to adjust the strategy to the new requirements. They serve
as early warning system which is different from the post action control. Strategy,
evaluation and control attempt to answer the question as ate we moving in the right
direction? They aim at proactive and continuous questioning of the basic direction.
They mainly focus on external environment and consider a long period of time and
exercise by the top management in support of the middle and lower level. The
objective is to verify that the firm is using appropriate strategies for the condition
In the external environment and the company's competitive advantages. Evaluation
and control are continuous process, strategic decision help to establish effective
strategy evaluation and control. In conclusion, it may be stated that strategy
evaluation and control ensure proper direction of strategy.

Even Strategy evaluation and control is important to ensure that stated objectives
are being achieved, the major three importance of strategy implementation and
control are as follows:

I. Guide to the implementation of the strategy

II. Provide early signals of the obstacles in the process of strategy
implementation.
III. Provide the future direction to the strategy etc.

The process of the evaluation and control may be mentioned through the
following steps/ stages:

1. Determining what to measure:

First step in the evaluation and control process is determining the measure control
area of an organization. The controls are based on the organizational mission and
objective development during the strategic planning process. The choice of area is
important because it is expensive and virtually impossible to control every aspect
of the organization.

2. Set control standers:

The second stage in the evaluation and control process is establishing control
standers. A standard is a target against which the subsequent performance is
compared. Standers enable managers to evaluate performance. Normally,
performance measured in terms of quantity, quality, time cost and behavior.

3. Measure performance:
Once standards are determined, the next step is measuring the actual performance.
Strategic evaluation and control involve continuous measurement of performance.
Under this, assessment is made in a regular manner to ensure that plan, programs,
projects, budget and producers are moving towards organizational objectives. The
aim behind it is to take corrective actions in case of deviations between the
standards and actual performance. Information is collected from internal as well as
external source for performance evaluation. A strong management information
system works as foundation for performance evaluation.

4. Compare performance to standards:

After the measurement of actual performance, it should be compared to the
standards. It determines the variation between actual performance and standards. If
the performance matches the standards, the process of strategic control stops.
Otherwise, attempts should be made to determine the reason of the deviations.

5. Determine the reason for the deviation:

The fifth step of the strategic evaluation and control process involves finding the
reasons of deviation between the standards and actual performance. The
organization needs to identify the deviation are due to internal shortcoming or
external changes which are beyond the control of the organization.

6. Take corrective action:

The final stage of evaluation and control is to determine and take the corrective
action .This include re-examinational of plans, programs, goals, and strategies.
The major strategic issues/ challenges on evaluation and control:

There are number of issues/ challenges/ barriers that may resist in the perfect
evaluation and control of strategy some of them are as follows:

I. Limits of control: It is never an easy task for strategists to decide the limits of
control. Too much control may damage the ability of managers; on the other hand,
too less control may make the strategic evaluation process ineffective. There are
some reasons or barriers for which strategic evaluation and control (SEC) system
fails.

II. Corrective Action:

It is not uncommon for organizations to change their strategic plans during
evaluation. This is corrective action. Yet sometimes the organization must
undertake corrective action which completely overhauls the entire strategic plan.
This means that people evaluating the strategy have to lower the standards or
benchmarks of the strategy. Lowering the standards has the implication of
reformulating the strategic plan, its goals and objectives. This requires more
resources and time.

III. Lack of Cooperation:

The evaluation process involves controlling the behavior of individuals. It is likely
to be resisted by managers. Strategy evaluation, like strategy implementation,
requires the cooperation and participation of management and personnel.
Unfortunately strategy evaluation, being the final stage of strategy management,
is often overlooked. One of the reasons that management and staff may not take
strategy evaluation seriously is because they perceive it as time consuming.
Strategists thus face the challenge of emphasizing the importance of evaluation to
determine if the organization has met its strategic goals.

IV. Difficulties in measurement: 

The process of strategic evaluation is fraught with the danger of difficulties in
measurement. The control system may measure element which is not intended to
be evaluated. One of the major tasks in strategy evaluation is measuring the
results of strategy implementation. Maintaining objectivity in assessing and
measuring the results of strategic plans is a major challenge. Although strategists
use evaluation tools such as financial statements, questionnaires and interviews,
some concepts such as manager opinions or contributions are difficult to measure.
If the right tools for measuring are available, then the process of strategic
evaluation becomes simpler. Lack of appropriate measuring tools slows down
strategic evaluation.

V. Short-termism:
Managers often tend to measure the immediate results. As a result, the extended
effect of strategy on performance is ignored even strategies are the long-term
policies.

VI. Relying on efficiency Vs effectiveness:

Efficiency is “doing things right” and effectiveness is “doing the right thing”.
There is often a genuine confusion among managers as to what constitutes
effective performance.

vii. Wrong Reporting/ information sharing:

Strategy evaluations have some similarity with audit reports, which can deliver
bad news sometimes. Strategists face the challenge of presenting an honest report
of the progress of the strategic plan. As in methods of measuring results,
objectivity is also a challenge during the reporting of these results. Inevitably not
all personnel or stakeholders will agree with the findings of the strategy report.
Strategists therefore face the task of presenting a fair report and one which does
not trigger organizational conflict.

The end
 Topic-3rd

Entrepreneurial venture/small business and factors that can affect

the success of entrepreneurial venture:

Introduction:
Entrepreneurial venture is any business whose primary goals are profitability and
growth and that can be characterized by innovative strategic practices.
Organizations that pursue opportunities are characterized by innovative practices,
and growth and profitability as their main goal can be called an entrepreneurial
venture. In other words the Entrepreneurial venture is a new business that is
formed with a plan and expectation that financial gain will follow. Often, this kind
of business is referred to as a small business, as it typically begins with a small
amount of financial resources. An entrepreneurial venture is usually formed out of
a need for a service or product that is lacking in the market. This need is often a
product consumers are requesting or something that serves a particular purpose.
After the need is determined, an investor or small-business person with the time
and resources to develop and market the new service or product can start a
business venture. Most likely, the development will be funded in its early stages by
an investor, who is often the business owner or creator of the idea. Oftentimes,
business ventures are funded by more than one investor, with the expectation that
the plan will be profitable in time.  As the business gets its feet, additional
investors may become involved providing support and capital to expand
development and marketing of the venture. All this is done with the intention of
sharing a substantial profit among all investors.

There is a fine line between being a small business (SB) owner and an entrepreneur
the roles actually have a lot in common but there are distinct differences that set
them apart. Small businesses usually deal with known and established products
and services, while entrepreneurial ventures focus on new, innovative offerings.
Because of this, small business owners tend to deal with known risks and
entrepreneurs face unknown risks. Limited growth with continued profitability is
what is hoped for in most small businesses, while entrepreneurial ventures target
rapid growth and high returns. As a result, entrepreneurial ventures generally
impact economies and communities in a significant manner, which also results in a
cascading effect on other sectors, like job creation. Small businesses are more
limited in this perspective and remain confined to their own domain and group.

Factors affecting success of new venture:

There are number of factors that affect the success of new venture/ business some
of them are as follows:

1. Industry structure/ organizational structure:

A carefully designed organizational structure is essential for success in a
competitive business environment. However, without a practical management
system that can establish companywide information dissemination, structure loses
its full effectiveness. Equally influential are the players within the management
system, who must be able to address all cultural factors that may affect the
operation of a company. These factors include organizational characteristics,
relationships, competition, and performance. All elements combine to form an
integrated business process.

A carefully designed organizational structure is a logical prerequisite for success in

the business environment. Good structure is inadequate, however, without a well-
designed management system that can serve as a solid foundation for running the
company and maintaining improvements. To be effectively designed, a
management system must address all contextual and cultural factors that may
affect the operation of a company. These factors include company organizational
characteristics, internal and external relationships, competition, strategic
challenges, and business performance. Management system designers must also
give full consideration to serving all the stakeholders. Stakeholders are usually an
eclectic group of players and can include customers, employees, investors,
suppliers, top management, and even community members. The needs of all these
groups have to be met without sacrificing operational efficiency, so the
management system must be designed to promote synergy between cultural and
stakeholder influences.

2. Business strategy:
If an opportunity exists, is it best to ensure that the product is first to the market or
is performance enhanced through waiting and following? What factors should an
entrepreneur consider in deciding when to take the lead in being the first to
introduce a new product or service? What can be done to improve new venture
performance? New Venture Strategy examines the process of introducing a new
product or service and offers readers a framework for thinking through the issues
involved in new venture performance. Examples include entry timing, market
conditions facing the entrant, focus or breadth of entry scope, product or process
mimicry, creation and development of entry barriers, and differences between
independent and corporate ventures. New Venture Strategy will be useful as a core
text in courses on entrepreneurship, corporate entrepreneurship, new product
development, small business, and strategic planning. It will also be of interest to
those developing business plans and others involved in new venture funding,
marketing, and business development. That’s why business strategy can be
considered as core factor influencing the success of new venture.

3. Entrepreneurial characteristics:
According to the trait theory of entrepreneurship, people having entrepreneurial
characteristics tend to have higher intentions to be involved in entrepreneurial
activities. Launching a business venture without having the basic trade instinct or
the characteristic of an entrepreneur is suicidal. This is so because such an
enterprise cannot stand on the test of time. For instance, an individual who goes
into business initially must face difficulty before the business break- even.
However, people who do not have trait of an entrepreneur would not be patient
enough to nurture a business to a profit-making stage. This is the reason why so
many small and medium scale businessmen fail. Entrepreneur's inability to
efficiency exhibit a basic trade instinct as well as lack of motivation, goals and
talent for venture creation sequel to the absence of entrepreneurial characteristics
in most business proprietor impedes the performance of business enterprise in no
small way.

4. The idea:
The strength of the entrepreneur's idea might seem to be the biggest factor
responsible for a business’s success, but it’s really only a small element of how
things might turn out. Consider Google, whose core idea of an interactive web
search was, at its start, already being implemented by dozens of competitors. But
because Google's founders' plan, execution and timing were superior, their lack of
originality didn’t cripple their chances of success.
5. Leadership and the team:
Leadership is important in startups. Leaders make the decisions, set the
vision and inspire people to work harder for a group’s goals. Put an incompetent
leader in place, and not only will high-level decisions be made less effectively, but
the morale of the group could be put in jeopardy. On the other hand, a skilled and
experienced leader can turn even a weak idea into a successful one.

Entrepreneurs are important, but they rarely accomplish great things alone.
Successful businesses employ anywhere from a handful to hundreds of people, and
those people will be the ones maintaining the business, driving innovation and
executing your high-level goals. Hire the right people for the job, and you’ll never
have a problem. Hire the wrong people and your best-laid plans might be ruined.

6. The capital:
Working capital is important in early stages of funding. Not to be panic while not
finding an investor, personal and familial investments are possibilities and keep
searching the well reliable source of financing. And not to rule out the possibility
of opening a line of credit, Once credit is secured, remember to keep an eye on
our cash flow: One wrong move here could put their cash into negative territory.

7. The plan: 
Plan has to involve more than just core idea. It includes goals, targets,
operations and more. Everything written down in business plan counts as part of
'plan', and the degree to which entrepreneur researched and fine-tuned the plan will
greatly affect the chances of eventual success.

8. The execution:
That being said, a plan is only as valuable as its ability to be executed. If
entrepreneurs have a great plan, but botch its execution, their entire enterprise
could be compromised. On the other hand, if they have an adequate plan and
execute it perfectly, they’ll have a solid leg to stand on and a key understanding of
what did and didn’t work from your original concept.

9. The timing:
Timing is important from a competitive perspective, and it’s led many businesses
to prominence despite a chaotic and busy market at their time of entry.
When 'YouTube' came on the scene, for example, there were already dozens of
video-streaming platforms. But because 'YouTube' launched at a critical moment
-- after high-speed Internet became the norm but before any other streaming
service had risen to prominence -- it enjoyed radical early success.
10. The growth:
Finally, the path entrepreneurs choose toward growth plays a significant role in
how they end up. Grow too fast and entrepreneur will stretch himself / herself thin.
Grow too slowly and entrepreneur will never get anywhere. So, finding a balance,
and treating growth carefully is the challenging task for new entrepreneur.
The end