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FPM Comprehensive Examination(2012) Business Policy Area Theme Proposal submitted by Samar Singh, Doctoral Student, FPM(BP)

Strategy implementation in professionally managed private companies and public sector firms Introduction Strategic management is a process for developing and enacting plans to reach a long-term goal that takes into account internal variables and external factors. Brinkerhoff (1999) characterizes strategic management as looking out, looking in, and looking ahead. Strategic management comprises five key facets: goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring. Strategy is a deliberate search for a plan of action that will develop a businesss competitive advantage and compound it. (Anderson, 1989). Strategy formulation is the effecting of Grand Design through which intention is sought to be translated to fruition. Mintzberg and Lampel (1999) have summarised the evolution in the field of strategy formulation in term of ten major schools which were further amalgated into three groups. These have been identified on the basis of underlying discipline from where the concepts are drawn and developed. The underlying disciplines are system theory, urban planning, economics, psychology, chaos theory, political science, anthropology, biology and history. Strategy implementation has been defined in different manner but with a consistent underlying concept. It is the successful implementation of the strategy planned (Dorthe, 2012). Strategy Implementation is the translation of strategy to action in order to achieve desired result (Camillus, 1981). The underlying discipline on which strategy formulation is

based do not indicate the steps required to be taken for implementation. Very frequently the strategies as formulated for achieving a desired result do not do so and this is where the study of Strategy Implementation can yield rich insight into the reasons underlying the often observed slip between the proverbial cup and the lip. While there is vast amount of literature on strategy formulation, same is not the case with strategy implementation (Hutzschenreuter and Kleindienst, 2006; Narayana, 2011). Since scholars from wide range of disciplines have studied strategic management in the light of their own academic and experiential backgrounds, there exists a wide variety in the views on its nature and characteristics (Okumus and Roper, 1999). Okumus and Roper (1999) have presented five different approaches to the study of strategy implementation. These are the planning approach, learning approach, contingency approach, configurational approach and the complexity approach.

Theme proposal I propose to study the effect of environmental conditions as obtained in India (Political, economic, social and legal/enforcement) on the strategy implementation from the perspective of CEO of the firm. This especially relevant as the prime responsibility of the CEO of a firm is performance of strategic management of the firm and a study commissioned by Times of India and carried out by global executive search firm Randstad has revealed that the average tenure of CEO in a family managed company in India is 14.7 years while the tenures of CEOs of professionally managed and public sector firms is significantly less at 3.9 years and 1.9 years respectively. The analysisdone for top 100 BSE-listed companies as of mid-June 2012showed that

35% of the previous CEOs had spent more than 10 years in office compared to only 23.2% of current CEOs who have held office for the same period (TOI, 11 Jul 12).

References Derick W., B. (1999). Process perspectives on policy change: Highlighting implementation. World Development, 24(Implementing Policy Change), 1395-1401. Henderson, B. D. (1989). The origin of strategy. Harvard Business Review, 67(6), 139-143. Mintzberg, H., & Lampel, J. (1999). Reflecting on the strategy process. Sloan Management Review, 40(3), 21- 30. Dorthe D., H., Richard M., B., Brge, O., & Jrgen T., L. (2012). Strategy implementation requires the right executive style: Evidence from Danish SMEs. Long Range Planning, 45, 182-208. Camillus, J. C. (1981). Corporate strategy and executive action: Transition stages and linkage dimensions. Academy Of Management Review, 6(2), 253-259. Hutzschenreuter, T., & Kleindienst, I. (2006). Strategy process research: What have we learned and what is still to be explored. Journal Of Management, 32(5), 673-720. Okumus, F., & Roper, A. (1999). A review of disparate approaches to strategy implementation in hospitality firms. Journal Of Hospitality And Tourism Research, 23(1), 2139. Narayana, B.V.L. (2011). Implementation of healthcare programmes: Development of an operational framework. Doctoral dissertation, Indian Institute of Management, Ahmedabad. Sharma, S. & Mukherjee, S. (2012). CEO tenure shrinks as work pressure mounts. Times of India. Retrieved from http://timesofindia.indiatimes.com/business/india-

business/CEO-tenure-shrinks-as-work-pressure-mounts/articleshow/14814698.cms on 12 Jul 2012.

Strategy Formulation 10 schools , Mintzberg 1999(a) Design school Selznick, Chandler, Andrews achieving essential fit between internal strengths and weaknesses and external threats and opportunities. (b) Planning school- H Igor Ansoff formal process, can be broken down to discrete steps.Staff planners replace senior managers. (c) Positioning school Analytic process prescriptive (Hatten & Schendel, BCG & Michael Porter 1980 (incl SunTzu 400BC). Strategy reduces to generic positions. (d) Entrepreneurial School A visionary process Schumpeter, Cole and others Intuition, metaphors (e) Cognitive school A mental process Simon and March (f) Learning Linblom, CYert & March, Weick, Quinn, CK pralhad and G Hamel (g) Power GT Allison, J Pfeffer, Salanick and Astley (h) Cultural E Rhienaman & R Normann (Sweden)

(i) Environmental MT Hannan & J Freeman, Contigency theorists (j) Configuration AD Chandler, McGill university, Mintzberg, Miler, Miles & Snow.

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