The function of the CEO is to perform the five tasks of strategic management. Strategy is made by the CEO a visionary founder of the business on one hand. On the other made by a group or team exercise involving managers and perhaps selecting other key personnel throughout the whole organization.
THE FIVE TASKS OF STRATEGIC MANAGEMENT -from Thompson and Strickland Strategic Management 12th edition.
1. FORMING A STRATEGIC VISION OF WHERE THE ORGANIZATION IS HEADED.
2. SETTING OBJECTIVES.
3. CRAFTING A STRATEGY TO ACHIEVE OUTCOMES.
4. IMPLEMENTING AND EXECUTING THE CHOSEN STRATEGIES EFFECTIVELY AND EFFICIENTLY.
5. EVALUATING PERFORMANCE AND INITIATING CORRECTIVE ADJUSTMENTS IN VISION, LONG TERM DIRECTIONS, OBJECTIVES, OR EXECUTION IN LIGHT OF ACTUAL EXPERIENCE, CHANGING CONDITIONS , NEW IDEAS AND NEW OPPORTUNITIES.
THE MANAGERIAL TASK OF IMPLEMENTING AND EXECUTING STRATEGY:
MANAGERIAL SKILL HERE IS REQUIRED TO FIGURE OUT WHAT MUST BE DONE TO PUT THE STRATEGY IN PLACE, CARRY IT OUT PROFICIENTLY AND PRODUCE GOOD RESULTS. MANAGING THE STRATEGY EXECUTION PROCESS IS PRIMARILY A HANDS-ON CLOSE-TO-THE-SCENE ADMINISTRATIVE TASK THAT INCLUDES THE FOLLOWING PRINCIPAL ASPECTS:
-Building an organization capable of carrying out the strategy successfully.
-Allocating company resources so that organizational groups charged with performing strategy critical activities and implementing new strategic initiatives have sufficient people and funds to do their work successfully.
-Establishing strategy supportive policies and operating procedure.
-Putting a freshly chosen strategy into place.
-Motivating people in ways that induce them to pursue the target objectives energetically and if need be modifying their duties and job behavior to better fit the strategy requirement of successful execution.
-Tying the reward structure to the achievement of targeted results.
-Creating a company culture and wok climate conducive to successful strategy of implementation and execution.
-Installing information communication, and operating system that enables constituting best practices and programs for continuous improvement.
-Exerting the internal leadership needed to drive implementation forward and to keep improving on how he strategy is being executed.
1. PLACE A TOP PRIORITY ON CRAFTING AND EXECUTING STRATEGIC MOVES THAT ENHANCE THE COMPANYS COMPETITIVE POSITION FOR THE LONG TERM.
2. BE PROMPT IN ADAPTING TO CHANGING MARKET CONDITIONS, UNMET CUSTOMER NEEDS, BUYER WISHES FOR SOMETHING BETTER, EMERGING TECHNOLOGICAL ALTERNATIVES AND NEW INITIATIVES OF COMPETITORS.
3. INVEST IN CREATING A SUSTAINABLE COMPETITIVE ADVANTAGE.
4. AVOID STRATEGIES CAPABLE OF SUCCESS ONLY IN THE MOST OPTIMISTIC CIRCUMSTANCES.
5. DONT UNDERESTIMATE THE REACTIONS AND THE COMMITTMENTS OF RIVAL FIRMS.
6. CONSIDER THAT ATTACKING COMPETITIVE WEAKNESS IS USUALLY MORE PROFITABLE AND LESS RISKY THAN ATTACKING COMPETITIVE STRENGTH.
7. BE JUDICIOUS IN CUTTING PRICES WITHOUT AN ESTABLISHED COST ADVANTAGE.
8. STRIVE TO OPEN UP VERY MEANINGFUL GAPS IN QUALITIES OR SERVICE OR PERFORMANCE FEATURES WHEN PURSUING A DIFFERENTIATION STRATEGY.
9. AVOID “STUCK IN THE MIDDLE” STRATEGIES THAT REPRESENT COMPROMISE BETWEEN LOWER COSTS AND GREATER DIFFERENTIATION BETWEEN BROAD AND NARROW MARKET APPEAL.
10. BE AWARE THAT AGGRESSIVE MOVES TO WREST MARKET SHARE AWAY FROM RIVALS OFTEN PROVOKE RETALIATION IN THE FORM OF A MARKETING ARMS RACE OR PRICE WAR TO THE DETRIMENT OF EVERYONES PROFITS.
HOW STRATEGIES GET CRAFTED AND WHAT IS THE PROCESS LIKE AND WHO PARTICIPATES:
The CEO, a visionary founder of the business or an enterprise’s current owner . At the other extreme , strategy making is a group or team exercise involving managers and perhaps select other key key personnel throughout the whole organization. The crafting of strategy at most companies take one of four forms.
1. THE CHIEF ARCHITECT APPROACH In some enterprises, a single person, the owner or CEO assumes the role of of chief strategist and chief entrepreneur, singlehandedly shaping most or all major pieces of strategy. examples Michael Dell at Dell computer, Bill Gates Mocrosoft, Howard Schultz at Starbucks.
2. THE DELEGATION APPROACH Here the manager in charge delegates big chunks of the strategy making task to trusted subordinates, down the line managers are in charge of key business units and departments.
3. THE COLLABORATIVE OR TEAM APPROACHThis is a middle approach whereby a manager with strategy making responsibility enlists the assistance and advice of key peers and subordinates in hammering out a consensus strategy. example Electronic Data Systems, and J.M.Smucker.
4. THE CORPORATE INTRAPRENEUR APPROACH In the corporate intrapreneur approach, top management encourages individuals and teams to develop and champion proposals for new product lines and new business ventures. The idea is to unleash the talents and energies of promising corporate intrapreneurs, letting them try out business ideas and pursue new strategic initiatives.