Strategy Implementation and Monitoring – Module 4 Case, management homework help

Module 4 – Case
Strategy Implementation and Monitoring
Assignment Overview
In the Module 4 Case, we will investigate the control systems at the Coca-Cola Company.
Case Assignment
Visit the website of the Coca-Cola Company: http://www.coca-colacompany.com/, and go to the Investors page. Look around at this page (there is a lot of excellent information here), and search for information related to the organization’s structure and controls. Then, locate the company’s most recent Annual Reports and 10-K filings. After completing some research at Coke’s website, in the library, and on the internet, please address the following:
1.Describe the organizational structure at the Coca-Cola Company (what form of structure does the company have?). Include any information you can find regarding the company’s Board of Directors and the company’s committees.
2.Describe the organization’s culture. How well does the company’s Values statement align with its culture?
3.Do some research at the Coca-Cola Company website and in the library (be sure to look at trade magazines and newspapers as well) and find as much information concerning the company’s control systems as you can (budgets, inventory control, annual objectives, functional strategies, policies and procedures, personnel evaluation systems, or other). Describe these controls, and discuss how they assist in keeping Coca-Cola’s strategies on-track.
4.In the Module 3 Case, you identified a grand strategy (or grand strategies) that the company should follow. Do the company’s organizational structure, culture, and control systems align well with this strategy? Explain.
Assignment Expectations
Your Case Assignment should be a minimum of 5 pages in length.
You are required to use APA formatting and you are required to cite and reference your sources. There should be a minimum of three (3) reputable sources cited and referenced in your paper (your sources must be different from the sources provided you in the Background materials).
Module 4 – Background
Strategy Implementation and Monitoring
Required Reading
Organizational Controls
To begin our discussion of implementation controls, please read Section 9.4 of the Mastering Strategic Management text. In this section, note specifically the reference to “organizational control systems.” Also, note the three general types of controls: Output controls, behavioral controls, and clan controls. Finally, be sure to review the section on organizational culture specifically. Culture, defined as “the way we do things around here,” is a key organizational control.
Functional Strategies, Annual Objectives, and Policies and Procedures
Following the choice of grand strategy (or strategies), the organization needs to execute its strategies. Execution requires that the grand strategy be:
1.Operationalized: The strategy must be implemented, put into motion;
2.Institutionalized: The strategy must be made clear to the people throughout the organization, i.e., “This is the direction in which we are now headed; this is the choice we have made”; and
3.Controlled: The strategy must be monitored on an ongoing basis, and every functional area of the organization must play a role in its execution.
When implementing its grand strategy, the organization must concern itself with the following:
1.Functional strategies;
2.Annual objectives; and
3.Policies and procedures that guide decision-making.
Functional strategies are short-term strategies established within each functional area within the organization (e.g. Accounting, Marketing, Human Resources, Operations, Customer Service). Let’s assume that the organization has selected to pursue a Concentration strategy. By definition, following a Concentration strategy requires that the organization focus its people, financial, and capital resources on a single product or service. An example of a Sales and Marketing functional strategy (one that is also aligned with a Concentration grand strategy) might be: “Product line X: Outperform Competitors A and B in Year 1 by 15% unit sales in Market Y.”
Annual objectives are the mechanisms by which functional strategies are translated into even more time-limited (annual) plans of action. An example of an annual objective that relates specifically to the Sales and Marketing function (again within a Concentration strategy) might be: “Provide sales training to 10 sales staff on Product Line X, resulting in an increase of 20% in annual revenue in Year 1.” Note how this objective is not only specific and measurable, but that it is time-limited (to one year) as well. Moreover, it is aligned well with a Concentration strategy, as it is intended to increase sales revenue of Product X by a certain percentage year over year.
Within each functional area, policies and procedures (and rules) guide day-to-day actions and decision-making. Policies and procedures allow for uniform and consistent handling of similar activities, and they guide people to desired organizational behaviors (some might consider this to be the basic “control” function of management). Many policies and procedures are formalized in writing. Others, however, may be unwritten and less formal.
Organizational Structure/ Organizational Design
The organizational structure is not only a form of strategic control, it must be aligned with the organization’s strategies. Be sure to read Section 9.1 “Executing Strategy through Organizational Design, in the Mastering Strategic Management text.
In addition to the formal organizational structure, committees – on a smaller scale – are structures that are frequently formed to keep strategies on-track. Committees are frequently formed by the Board of Directors; such committees monitor key strategic areas, for example, Budgets, Audits, Capital Expenditures, Finance, Employee Compensation, Special Projects, and Corporate Social Responsibility.
Organization Culture
Organizational culture plays a critical role in the execution of strategy. Culture was mentioned in Section 9.4 of the Mastering Strategic Management text.
For an excellent overview of organizational culture, please read Chapter 1 of Mats Alvesson’s book: Understanding organizational culture.
Alvesson, M. (2002). Understanding Organizational Culture. London: SAGE Publications Ltd. Retrieved from EBSCO eBook Collection.
Budgeting and Variance Analysis
Budgeting is a key means of implementation control. Actual expense to budgeted expense analysis (or variance analysis) is critical to keeping a strategy on-track.
For a very good overview of how budgets are used as control systems, please read Chapter 2: “Strategic Planning and Budgeting” of Shim and Siegel’s text:
Shim, J. K., & Siegel, J. G. (2009). Budgeting basics and beyond. Hoboken, N.J.: Wiley. Retrieved from EBSCO eBook Collection.
Next, read Chapter 8 in Shim and Seigel, as it relates to Variance Analysis:
Shim, J. K., & Siegel, J. G. (2009). Budgeting basics and beyond. Hoboken, N.J.: Wiley. Retrieved from EBSCO eBook Collection.
Performance Appraisal
It goes without saying that no strategy would exist without the people who are ultimately responsible for executing that strategy. Proper implementation and execution of strategic choices requires the best people. And the best people are selected by – and retained by – the organization through the performance appraisal process. Of course, this is a Human Resource Management (HRM) function. Performance appraisal is, therefore, used as a strategic control. Read a short summary of the performance appraisal process here:
Performance appraisal. (n.d.). Management study guide. Retrieved from http://www.managementstudyguide.com/performance-appraisal.htm
Institutionalizing the Strategy
Above, it was stated that strategy must be “institutionalized.” Institutionalization of the strategy requires not only that everyone within the organization is aware of the strategy, but also that everyone is on-board. Institutionalization process requires that the strategy is understood and that everyone knows his/ her role in execution process. Read Chapter 19 of Brian Tracy’s text: “Engage the Entire Company”:
Tracy, B. (2015). Business strategy (The Brian Tracy Success Library). New York: AMACOM. Retrieved from EBSCO eBook Collections.
Optional Reading
If you should need additional resources related to strategy implementation and execution, monitoring, organizational culture, and/or organizational structure, please reference the following:
For a general, albeit straightforward, discussion of strategy implementation, see Lorette’s article:
Lorette, K. (2016). What is strategic implementation? Small Business. Retrieved from http://smallbusiness.chron.com/strategic-implementation-5044.html
Read the following overview of strategic controls:
Adams, D. (2016). What are the four types of strategic control? Small Business. Retrieved from http://smallbusiness.chron.com/four-types-strategic-control-14720.html
For a good review of organizational structure, read Chapter 20 of Brian Tracy’s text:
Tracy, B. (2015). Business Strategy (The Brian Tracy Success Library). New York: AMACOM.
For a very good overview on how organizational culture relates to organizational performance, be sure to read Chapter 3 of Mats Alvesson’s book:
Alvesson, M. (2002). Understanding organizational culture. London: SAGE Publications Ltd. Retrieved from EBSCO eBook Collection.
The following article provides a very good overview of “management control systems” in general:
Agarwit, R. (2016). Management control system: Definiton, characteristics, and factors. Your Article Library. Retrieved from http://www.yourarticlelibrary.com/accounting/company-accounts/management-control-system-definition-characteristics-and-factors/52963/
Finally, Hrebiniak’s article is a good discussion as it relates to overcoming the barriers to effective execution:
Hrebiniak, L. (2008). Making strategy work: Overcoming the obstacles to effective execution. Ivey Business Journal Online, 72(2), 1. Retrieved from http://search.proquest.com/docview/216195296?accountid=28844