Managing Internal Operations

Implementing a new or different strategy calls for managers to identify the resource requirements of each new strategic initiative and then consider whether the current pattern of resource allocation and the budgets of the various sub units are suitable.

Competent strategy execution entails visible unyielding managerial commitment to best practices and continuous improvement.Bench marking,best-practice adoption,business process re engineering,total quality management(TQM),and Six Sigma programs are important process management tools for promoting better strategy execution.

Company strategies can't be implemented or executed well without a number of support systems to carry on business operations.Real-time information systems and control systems further aid the cause of good strategy execution.

Strategy-supportive motivational practices and reward systems are powerful management tools for gaining employee commitment and focusing their attention on the strategy execution goals.The key to creating a reward system that promotes good strategy execution is to make measures of good business performance and good strategy execution the dominating basis for designing incentives,evaluating individual and group efforts,and handing out rewards.


# Source from the textbook of Strategic Management

Building An Organization Capable Of Good Strategy Execution

"Of all the things I've done,the most vital is coordinating the talents of those who work for us and pointing them toward a certain goal". -Walt Disney-Founder of the Disney Company

The 10 basic tasks of the strategy execution process:

1. Staff the organization with managers and employees capable of executing the strategy well.
2. Build the organizational capabilities required for successful strategy execution.
3. Create a strategy-supportive organizational structure.
4. Allocate sufficient resources(budgetary and otherwise)to the strategy execution effort.
5. Institute policies and procedures that facilitate strategy execution.
6. Adopt best practices and business processes that drive continuous improvement in strategy execution activities.
7. Install information and operating systems that enable company personnel to carry out their strategic roles proficiently.
8. Tie rewards and incentives directly to the achievement of strategic and financial targets.
9. Instill a corporate culture that promotes good strategy execution.
10. Exercise the internal leadership needed to propel strategy implementation forward.

How well managers perform these 10 tasks has a decisive impact on whether the outcome of the strategy execution effort is a spectacular success,a colossal failure,or something in between.

When strategies fail,it is often because of poor execution.Strategy execution is therefore a critical managerial endeavor.The two best signs of good strategy execution are whether a company is meeting or beating its performance targets and whether they are performing value chain activities in a manner that is conducive to company wide operating excellence.

Structuring the organization and organizing the work effort in a strategy-supportive fashion has four aspects:

• Deciding which value chain activities to perform internally and which ones to outsource
• Aligning the firm's organizational structure with its strategy
• Deciding how much authority to centralize at the top and how much to delegate to down-the-line managers and employees
• Facilitating the necessary collaboration and coordination with external partners and strategic allies.

Motivations and Rewards

What companies do to motivate and reward employees?

MOTIVATE + REWARD = EXCELLENT

Such a great combination! Learn from the history and take as a role model or guide in our life.I like to give an example of the Prophet Muhammad because he was a great leader for the whole era.
'Abdullah Ibn 'Abbas said that the Prophet Muhammad said:

"Whoever sticks to my Sunnah(my way,my path,my practice,my teachings)when my Ummah becomes corrupt,will receive the reward of 100 martyrs."

There are many ways of organizations and companies motivate and reward their employees.From small to the giant companies.All of them state how they act.But I like to share my own experience.Doing part time job as the seller assistant at the mini market.So many types of people I have met.It's full of fun actually!! =)

Sometimes I feel like annoying...it's normal when we communicate with all types of customers.But,my employer always motivate me to be as patient as I can.The bombastic words I like.."It's just simple problem.You are still young.Your journey still long.Just grab the experience and keep calm."Woww!!Full of motivation!!

And of course the reward is when I get the wages~~Money~~Money~~ $$$$

Yes.Money is important.But the more valuable is EXPERIENCE.

Corporate Culture

How a corporate culture can assist in executing strategies in an organization?

I just read about 6 ways to create a corporate culture of innovation.

• Creating the right corporate culture
• Hierarchy is horizontal
• Leadership serves
• Time is powerless
• Orientation is organizational
• Results are king(No one is entitled)

If you are one of the top managers,what kind of values that you would like to inculcate in your organization?Why does it so?

"Just heard about the organization,automatically imagine their top managers".Wow!! Really gives big impact!
While reading books,journal or news especially in area of business and organization,we found the term of SUCCESS.Every success comes from amazing experiences.A lot of experiences that need to face before gain the SUCCESS.

Simple view but Amazing example: PROPHET MUHAMMAD(PBUH):
"Prophet Muhammad communicative values of liberty,justice,modesty,and politeness were matched with practical deeds.Prophet Muhammad' skills as manifested in his speeches demonstrated to the eyes of all humankind that he was indeed a great leader worthy of note".

Another example: "I am a simple trader from Alor Star who did not complete his Form Five education.However,I draw confidence from my faith in ALLAH". {Tan Sri Syed Mokhtar Albukhary}

As the one of the top managers,I would like to inculcate the values of corporate governance in our organization.Accountability,Transparency,Responsibility,Fairness,Integrity,Honesty,Independence and Judgement.All of these are relates with Islamic Values.

Besides,our staff also can express their bombastic ideas especially for successful of the organization.Bombastic ideas not just only come from the top organization,but also from staff level.Meaning that,we appreciate their ideas. =)

Corporate Strategy

Assalamualaikum.Hye readers.Just take a few minutes to read additional knowledge about corporate strategy.

What does crafting a diversification strategy entail?
The task of crafting a diversified company's overall corporate strategy falls squarely in the lap of top-level executives and involves four distinct facets:

1. Picking new industries to enter and deciding on the means of entry.
2. Pursuing opportunities to leverage cross-business value chain relationships and strategic fit into competitive advantage.
3. Establishing investment priorities and steering corporate resources into the most attractive business units.
4. Initiating actions to boost the combined performance of the corporation's collection of businesses.

I just give simple example.As we know,Air Asia is the biggest company and offers the lowest fares.

Air Asia believes that certain segments of this market have been under-served historically and that the Group's low fares stimulate travel within these market segments.Its slogan "Now Everyone Can Fly!" encapsulated Air Asia's goal of expanding the market for air travel in Southeast Asia.

To penetrate its target market, Air Asia placed a big emphasis on marketing and brand development."The brand is positioned to project an image of a safe,reliable low-cost airline that places a high emphasis on customer service while providing an enjoyable flying experience".Air Asia also built its image through co-branding and sponsorship relationships.A sponsorship deal with the AT&T Williams Formula 1 race car team resulted in Air Asia painting one of its A320s in the livery of the a Williams race car.Its sponsorship of Machester United has resulted in it painting its planes with the portraits of Machester United players.It also sponsors referees in English Premier League.A cooperative advertising deal with Time magazine resulted in an Air Asia plane being painted with the Time logo.


# Sources from www.inkling.com

Company's External Environment

Every company operates in a broad "macro-environment" that comprises six principal components: political factors,economic conditions in the firm's general environment(local,country,regional,worldwide),
sociocultural forces,technological factors,environmental factors,and legal/regulatory conditions.


The Components of a Company's Macro-Environment :

Vision and Mission

Assalamualaikum to all readers.For this entry I want to share something about how to build the vision,mission,objectives and strategy.Not only just in business but also in our life.We must have the parts of these to make sure our life are in true ways.

WHAT DOES THE STRATEGY-MAKING,STRATEGY-EXECUTING PROCESS ENTAIL?

There are FIVE strategies consists of :

Coca-Cola.Urmm..just heard the name,automatically we can imagine the famous drink in the world.The famous competitor is Pepsi.Coca-Cola is the biggest company and for sure the company also has big vision.

Do you want to know what are the vision of Coca-Cola??

Coca-Cola >> "Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable,quality growth".

How about Islamic business or Islamic products??

HALAGEL.All of you had heard about the company?Let's I share with my lovely readers. =)

Halagel (M) Sdn Bhd is the sole importer and distributor for "Halal" foods,pharmaceutical grade gelatine and empty hard gelatine capsules for Malaysia and South-East Asia markets.Today lead Halal gelatine ingredients for food and pharmaceutical manufacturers in Malaysia.

Mission > "TO BE THE HALAL HOUSEHOLD BRAND IN MALAYSIA"

Vision > "TO SERVE THE WORLD WITH HALAL PRODUCTS"

Subhanallah.Fantastic!May ALLAH bless their mission and vision to bring and serve the Islamic Products all over the world.