1. ACTIVATING STRATEGIES

2. Organizational Structure
Structure is the division of task for efficiency and clarity of purpose, co-ordination between the independent parts of the organization to ensure organizational effectiveness.
It is a proper arrangement of tasks and sub-tasks required to implement a strategy.
An organizational structure defines how activities are directed towards the achievement of organizational goals.
Structure depends on size of business, nature of business, characteristics of market, strategy , future plan etc.

3. Components of Organizational Structure
It identifies the formal reporting relationships, including the number of levels in the hierarchy and the control of managers.
It specifies the grouping of individuals into departments and departments into the total organization.
It consists of design of systems to ensure effective communication, coordination and integration of efforts across departments.

4. Relation between Strategy and Organization
Strategy determines organizational tasks.
Strategy influences the type of technology and people responsible for accomplishment of those tasks and this in turn influences the structure.
Strategy determines the specific environment within which the organization will operate.

5. Relation between Strategy and Organization
Strategy is the main driver that decides the structure of an organization.
Strategy and structure should be interlinked to achieve desired results.
Strategy and structure are interdependent.
Structure must be integrated with strategy for the organization to achieve its mission and goals.

6. Different organizational Structures for different Strategies
FUNCTIONAL STRUCTURE
DIVISIONAL STRUCTURE
MATRIX STRUCTURE
STRATEGIC BUSINESS UNIT STRUCTURE

7. FUNCTIONAL STRUCTURE
In this structure organization is grouped according to its purpose.
It is divided into functions or departments.
The organizing of specialization leads to operational efficiency where employees become specialists.
Lateral communication between functions become important.
Drawback is that the coordination and communication between departments can be restricted

8. DIVISIONAL STRUCTURE
This structure is used in large companies that operate in wide geographic area Or that cover different types of products or market areas.
Needs of organization can be met more rapidly and more specifically.
Delegation of authority takes place.
Co-ordination and flexibility between different divisions
Divisional structure is costly because of size and scope.
Overemphasis on divisional goals
It can support unhealthy rivalries among divisions

9. MATRIX STRUCTURE Hybrid of divisional and functional structures.
It is used in large multinational companies.
Company will have dual manager- one functional manager and one product/ divisional manager.
It allows for specialization.
Allows team members share information more rapidly.
Increases complexity of the chain of command.

10. STRATEGIC BUSINESS UNIT STRUCTURE
SBU is a relatively autonomous division of large company that operates as an independent enterprise with responsibility of a particular range of products or activities.
SBUs have autonomous mission and objective.
They are responsible for their own profit and loss but answerable to top management.
It responds quickly to the changing economic or market situations

11. RESOURCE MOBILIZATION
MONEY
MARKETS
MACHINES
MATERIAL
MEN

12. MONEY Sources Banks and Financial Institutions Lending institutions
Friend / Family
Venture capitalist
An angel Investor
Crowd Funding

13. LEADERSHIP AS A KEY DRIVER OF STRATEGY
Strategic leadership is the ability to lead an organization towards the achievement of its objectives.
“The leaders ability to anticipate, envision, and maintain flexibility and to empower others to create strategic change as necessary.
Ability to integrate both internal and external environment.

14. Levels where leaders operate
Corporate level
Business Level
Functional Level
Operational Level

15. Roles of leadership as key drivers of strategy
Leader as an Innovator.
Leader as an Analyst.
Leader as an Organizer.
Leader as a Guide.
Leader as Strategist.
Leader as a Motivator.
Leader as a Developer
Leader as a change agent.
Leader as a Decision maker.
Leader as a Collaborator.
Leader as a Risk Analyst.
Leader as an Evaluator.

16. MOTIVATION AS A KEY DRIVER OF STRATEGY
Innovation and efficiency
Reduction in Absenteeism and Employee Turnover.
Open Communication.
Creativity and Innovation.
Better Customer Service.
Need Based Motivation

17. ROLE OF CREATIVITY IN STRATEGY FORMULATION
Creativity is the ability to challenge assumptions, see new ways, recognize patterns, take risks and seize upon chance while dealing with a problem.
Creativity is a function of knowledge, curiosity, imagination and evaluation.
Creativity is an intuitive process for discovery that sometimes ends in products and services.
Creative processes are central part of strategy development.

18. ROLE OF INNOVATION IN STRATEGY FORMULATION
Innovation is a set of procedures , processes and behaviors that lead to improving the general atmosphere in the organization.
It is a conversion of knowledge and ideas into a benefit in form of new or improved products , processes or services.
Creativity refers to generating new ideas and Innovation refers to application of an idea.

19. Strategies to improve employees Creativity and innovation to boost company’s performance
Foster an environment of imagination and exploration.
Participative management.
Open Communication.
Training and development programmes.
Give problem solving opportunities to employees.
Positive reinforcement and motivation.
Expansion of knowledge base of employees

20. EVALUATION AND CONTROL OF STRATEGIES
BENCHMARKING
PERFORMANCE GAP ANALYSIS.
RESPONSIBILITY CENTRE.
RETURN ON INVESTMENT(ROI)
BUDGETING.

21. BENCHMARKING
Benchmarking is a measurement of the quality of an organization’s policies , products, programs, strategies etc and their comparison with standard measurements.
A tool to identify gaps in the process to improve and enhance performance.
Comparison with other businesses.
Competitive strategy to win market shares and survival strategies for weak industries.

22. Objectives of Benchmarking
To determine what kind and where improvement is required.
To analyse how other organizations achieve high performance levels.
To improve performance and become more competitive.
To enable companies to accelerate the process of change.

23. TYPES OF BENCHMARKING INTERNAL BENCHMARKING EXTERNAL BENCHMARKING
PERFORMANCE BENCHMARKING
PROCESS BENCHMARKING
STRATEGIC BENCHMARKING
INTERNATIONAL BENCHMARKING

24. Process of Benchmarking
Determine Benchmark focus
Planning and Research
Gathering data
Analysis
Recommendations
Implementation

25. Advantages of Benchmarking
Improves performance.
Understand relative cost position
Gain strategic advantage
Increase the rate of organizational learning
Setting up new paradigms.
Change management.
Infusion of Creativity.

26. Disadvantages of Benchmarking
Inadequate to measure the overall effectiveness
Fear of following flawed standards
Fear of Complacency
Means to an end

27. PERFORMANCE GAP ANALYSIS
Gap Analysis compares the gap between an organizations actual performance against its potential performance.
Identification of performance gap is a valuable strategic control measure.

28. PROCESS OF GAP ANALYSIS
Study of current state of the organization
Study of the future state
Compare the current and future state
Remedial Measures

29. Advantages of Gap analysis
Identify areas needing improvement.
Suitability
Decision making
Quick diagnosis of problems
DISADVANTAGES
Technological changes
Govt control through legal measures
Seasonality
Involvement of experts

30. RESPONSIBILITY CENTRES
Any functional unit headed by manager who is responsible for the activities of that unit.
Manager is responsible for the accomplishment of the task set in that particular unit.
TYPES
Revenue Centers
Expense Centers
Profit Centers
Investment Centers

31. RETURN ON INVESTMENT (ROI)
ROI measures the gain or loss generated on an investment relative to the amount of money invested.
Usually expressed as percentage.
Used for financial decision to compare a company’s profitability
ROI=(Net Profit / Cost Of Investment)/ 100

32. Advantages of ROI Measures overall efficiency of business
It helps to make comparison
It encourages managers to focus on profits and assets required to generate profits
It is used to compare large businesses with small businesses
It is significant for investors to know safety and security of investments

33. Disadvantages of ROI
Excessive cost cutting activities can improve short term ROI but weaken the businesses future competitiveness.
Postponing the placement of assets can improve short term ROI
Only indicates high or low profit , but not the reason.

34. BUDGETING
It is a process which specifies how the organizational resources are used to achieve the long term goals
It provides a yardstick for measuring and comparing the performance across various departments.
It acts as a link between resources and the expectations of the organizations.
It involves preparing the budget and then controlling the expenditure as per the limits specified in the budgets.

35. Advantages of BUDGETING
Facilitates planning
Profitability review
Performance evaluation
Forecasting the future financial needs
Cash allocation
Coordination

36. Disadvantages of BUDGETING
Time consuming process
Possibility of misuse
Blame game
Expense allocation
Only considers financial outcome
Strategic rigidity