Manakamana cable car company

Manakamana cable car is the technological wonder of Nepal.It become operational on 24 November entrepreneur is Mr.Laxman Babu Shrestha.It located 104 kilometers west of Kathmandu in cheres,Kurintar.It takes about three hours to get three by road from Kathmandu.Hindu devotes use it for pilgrimage to"fulfillment"goddess manakamana of manakamana temple.Foreign tourists take a ride it to enjoy natural beauty.The cable car ride is about 9 minutes.
The technology for cable car was supplied by the world famous Dopplemayr company of Austria.It covers a distance of 2.3 kilometers.The elevation increase from 258 meters in Cheres to 1302 meters in Manakamana village.It has 34 wagons of which 31 are used for passengers and 3 are used cargo.One compartment carries 6 passengers or cargo not exceeding 450 kg weight.It can transport 600 persons per hour.It employs 121 persons.
The total project cost was Rs.430 million.The equity capital is Rs.160 million and the long term loan is Rs. 270 million.A consortium financed the project.It consists of Nepal bank (Rs.130 million),employees provided fund (Rs.70 million),Nepal industrial development corporation (Rs.50 million) and Nepal Bangladesh bank (Rs.20 million).The company has paid off about Rs. 230 million of loan so far.
Before the establishment of Manakamana cable car about 50,000 devotees took a difficult to Manakamana temple annually.The cable car transports about 300,000 persons annually.

Panchakanya brand in international market

The brand name sells not only in Nepal but in neighboring countries like India and Bangladesh and Tibet too."We are gradually extending our market to some parts of India and Tibet,too,"says Shrestha.
Cutting edge :When it comes to big brand all are some,promising best quality,customer satisfaction and value for money.But here is one brand,which begs to differ."Every year we try to help the country in our own small way.We are trying to take to up the challenge to becomes the first factory to help stop pollution.Education is another factor as it helps in the development of a nation and taking this into consideration we have been contributing to schools in some way or other.Since Nepal is the earthquake zone we have collaborated with the organization in spreading awareness about disaster,"Shares Shrestha.
And there is more.Today manages ten companies and treading house.As a result a lot Nepal's company work in international level.Panchkanya group products are well and famous.

Brands of Panchakanya group

They are follows :

1. Naming the brand :Behind the big brand there is an even bigger name.Panchakanya has a long history it.Explaining Shrestha says,"It actually began at Ilam with a temple of Goddess Panchakanya.Since we strongly believe in her,we built a temple in her name.That is how it started and we named our first industry Panchakanya."
   The name of the goddess proved very lucky for them and henceforth they named all their products with the same brand name."today we have seven industries and we have all the products under the name Panchakanya.We are,i can say ,emotionality attached to the brand name for more than two decades and what it has gained over the years is quite remarkable,"says Shrestha.
2. Launching the brand :Thirty-five years ago,there was no such thing as launching a brand.The brand name thrived on the quality of its product."We believe quality pays in the long run.The quality commands extra remain for our products,as we never compromise o n quality.Being known for a quality product in the market we did not need a launch or advertisement then.The quality sold the product and till date we have a strong bond with our customers due to the quality we have provide them over the years," says Shrestha.
3. Marketing the big brand :The brand name sells but there are certain strategies needed to remain at the top,"we are the pioneers in the field and have chosen to believe in leading rather than following the market,"says Shrestha.Choosing to lead,the company has come up with various strategies.If you think you are buying a Panchakanya product and that is the end it,you are certainly wrong.Panchakanya's product comes along with an awareness package."We are here not only to make money but provide a quality product for our customers.Therefor we organize awareness programmes for our customers,"shares Shrestha.Their responsibility does not end here."Being the parent steel industry we tap our resources from outside to give lectures to the students.Besides,we helps sponsor programmes for Nepal engineering association,"says Shrestha.Dealers are considered important and they too are provide training as how they can express themselves to the customers.
   

The panachakanya story

Very few brands get to make it big in the market even after decades and Panchakanya is one such brand which has not only captured the niche market but has been able to maintain the brand name known for its quality even after two decades.The brand has become the household name and is now synonymous with quality.What started with a rice mill followed by a saw mill turned into the beginning of new era in industry in Nepal."It is definitely a pride to say that we were the first industry with modern technology.Since Jhapa is known as the rice bowl of Nepal,we established the first rice mill with modern technology.Back then the business was good and our product has a big demand in Bangladesh and some parts of Nepal,"Shares Pradeep k Srestha,managing director of Panchkanya group.
After the success of the rice and saw mills there was no looking back for the Panchkanya group."For more than two decades our brand has earned the goodwill of the customers and that is the motivation behind our quality product,"says Shrestha.The trust,fame and recognition the brand has gained today have led the company to diversify product under the same brand name.
Fulfilling the nation's visit needs,manufacturing essential goods and development materials such as power generators,heavy equipments and cement for economic growth,the brand has come a long Way.

Promotion,customer analysis and postcript of Machan

1. Promotion :Machan uses glossy travel magazines to advertise its services.Word of month promotion by satisfied customers has also been an important tool of promotion.It also offers on season summer packages at 50 percent reduced prices from May to September.Internet travel magazines are also used for advertising purpose.
2. Customers analysis :Machan wildlife resort has targeted foreign tourists that visit Nepal for pleasure and adventure.Indians represent about 30 percent of total tourists in Nepal,but they remain neglected.Nepalese park but the resort has not given attention to attract them for night stay.The management of Machan wildlife resort has asked you to carry out market segmentation.They have also asked you to recommend segment that should serve as target markets during the next five years.
3. Postscript :In recent years,internal in Nepal has substantially declined.Many wildlife resorts have closed down.

Analysis the internal strengths and weakness and external opportunities and threats for Machan wildlife resort.The wildlife resorts are a very strong point in a country.In Nepal a lot of income by wildlife resorts.

Machan wildlife resort product,price and place.

There are follows:
1.product:The services provided are:

• Elephant back safari to explore flora and fauna in the deep forest.
• Cameoing trip down the river to watch birds and aquatic animals.
• Bird watching on elephant back in early morning hours assisted by professional guides.
• Jungle excursion on foot with nature guides to identify flora and fauna and experience adventure.
• Elephant briefing,slide presentation,library services.
• Traditional Tharu stick dance in the evening.
• Village visits.

Machan wildlife resort has not differentiated its product.Market positioning also has been done.All the wildlife resorted provide almost the same type of services.The products of Machan wildlife resort are at the growth stage in the product life cycle.
2.Price:Wildlife resort business in Nepal is highly competitive.Machan wildlife resort has set its price in line with the price charged by similar lodges.The rates are for one person and include accommodation,full board,jungle activities,park entrance fee,government tax,etc.
Tiger top is the pioneer of wildlife resorts and has a high image.It is used as a model by other resorts in Nepal and Asia.
3.Place:The travel agencies in Kathmandu and Pokhara serve as the main channel for booking of rooms.Machan also directly contacts Customers through e-mail and fax.Employees in Kathmandu reservation office arrange transportation,receiving and sending of customers.

Machan wildlife resort

Tourism is an important industry for Nepal.The eye caching scenic beauty,ethnic and cultural diversity and rich flora and fauna have made Nepal a popular destination for tours ts.Table-1 presents statistics about tourism in Nepal.Nepal has about one dozen national parks and wildlife reserves.They attract environmentally sensitive tourists interested in flora,fauna and wildlife adventure.
The Royal Chitwan national park is the most well known among Nepal's wildlife reserves.Its inhabitants include:

• Bengal tiger,one-horned rhino,sloth bear,Indian bison,deers,etc.
• About 450 specifics of birds.
• Over 45 specifics of reptiles.
• Many species of flora.

The number of tourists visiting royal Chitwan national park are increasing.The figure are:
YEAR FOREIGN TOURIST NEPALI'S TOURISTS TOTAL TOURISTS
1998...................51246.........................................22652.....................................73898.
199.....................69464.........................................26598.....................................96062.
2000..................72528.........................................31518......................................104046.
2001...................60000.......................................25000.....................................85000.
2002..................40000........................................15000.....................................55000.
2003..................30000........................................10000.....................................40000.
The tourist arrival has substantially gone down in recent years.
Many wildlife resorts have been established by the private sector both inside and outside the royal Chitwan national park.Altogether there are seven wildlife resorts inside the national park.The number o0f resorts outside the park is in hundreds.
Machan wildlife resort was established in 4987 inside the Royal national park.It is a deluxe resort with accommodation in bugalow-type complexes of 2to 4 rooms.The rooms have traditional decoration.It has a small swimming pool with restaurant and bar attached.It does not offer jungle camp.The total employees number 160,of which 14 are stationed in Kathmandu reservation office.

Gunilo Nepali products

Bindu Kumari,a housewife of Pokhara,is very good in home production of traditional Nepalese food products.Family members and friends immensely enjoy her food products.
Bindu was not happy remaining a mere housewife within the four walls of the house.She through that her skills were not properly being utilised.Dhe hit upon an idea to undertake production of traditional Nepalese food products on a commercial basis.She established a factory"Shital Agro products".The brand name of products is "Gunilo"Which means nutritious and beneficial to health.The processing and packing is done hygienically in poly thence bag.
The raw materials of best quality is collected from farmers all over the country that do not use chemical fertilisers.A total of 50 products are processed,paced and marketed.Some popular products are :

1. Gundruk(Rayo,Kauli,Tori) 11.Jimbu

2. Mashyora 12.Timbur
   
3. Sinki 13.Shilam
   
4. Phapre flour 14.Chuk amilo
   
5. Kodo flour 15.Tejpat
   
6. Khatte rice 16.Dried apple
   
7. Simi 17.Dried ginger
   
8. Mas dal 18.Akbare chilli
   
9. Gahat dal 19.Methi
   
10. Cow urine 20.Duna/Tapari
    

Bindu has given employment to 10 women.She started with a capital of rs.50,000 in 1998.Today,her sales exceed rs.1,000,000.The business is growing.
The participation in a one-week marketing management training organized by Pokhara chamber of commerce opened the eyes of Bindu Karki.She has a specialty shop called"Green house"in shree complex vegetable market of Pokhara to directly market her products.She is also marketing her products through various department stores of Kathmandu.She also has for export to Nepalese living in foreign countries through e-commerce.

Bakery cafes

Shyam sunder Lall Kakshapati,the maker of bakery cafe Chines is deeply engrossed in business expansion.They speak of quality with affordable price.
At the tender age of 19,Kakshapati opened"Sam's Grocery shop"at Ratan Park.It because the "best candy shop in town".He added a juice fountain lemonade which was an instant success.However,he was not satisfied to be a grocer.He opened cafe de park to cater young professionals segment.
While enjoying the growing success of the business of the cafe for about three years,he identified that the pasture was greener in Durbar marg area which was attracting ever increasing number of travel agencies,airlines offices and banks.So he moved there and set up Naglo restaurant in 1976 which soon became a famous rendezvous first for the young people and gradually for people of all ages.In 1978,he expanded the restaurant to add a Chines room.Gradually the facilities developed a capacity to serve 300 persons at a time under the same roof.It targeted youth and working people.
Kakshapati's expansion dive outside Durbar Marge experienced a jolt in 1984 with the Nagarkot resort project.Though the resort business was a new field for Kakshpati,he recalls that he had carefully calculated all the risks and possible benefits,and he also had built up a strong support structure of friends,consultants and other professionals.People also were ready for the resort ides-to get out of the valley and relax.Though he has a successfully running resort spring resort set up in 1996 at Kurintar by the side of Kathmandu-Pokhara highway,he says the sudden demise of Nagarkot project broke his heart and spirits due to army control of Nagarkot because of its strategic location.

Problems faced by Himalaya bank related to credit card

Himalaya bank was established in 1992 under a joint venture with Habib bank of Pakistan.It has five branches in Kathmandu Valley and eight branches outside Kathmandu valley.It has correspondence relationships with 178 international banks.It has recently installed Globus accounting software to provide better services to its clients.Himalayan bank accepts deposits and provides loans.The other services provided by it are:Tele-banking,all branch banking,Automatic teller machine,24 hour banking ,credit card,foreign exchange and letter of credit of etc.
HBL faces a number of problems in its credit card business.Most Nepalese people lack awareness about card.They feel that having a credit card involves extra costs in subscription and service charges.Moreover,not all the shops accept credit cards.
The use of credit cards is generally limited to city centers.Customers do not report loss of credit cards promptly.Fraudulent activities are increasing,especially in e-commerce transactions.Risks are getting higher.support from other departments of HBL is also lukewarm.
The top management of Himalaya bank fells that its credit card business needs streamlining and strengthening from management point of view.

Management of credit card functions

The credit card department was established in 1994 at "Thamel in the head of Himalayan bank .In 1997,its name was changed to credit card center and was shifted to Maharanjgunj branch.Since 1999,the credit card center has been shifted to Pulchowk branch.There has been frequent transfer of personnel in the center.The functions of the center are :

• Marketing :This function in concerned with issue of card.It communicates through telephone,e-mail and latter to attract and retain qualitative members.It keeps track of the needs of potential and current cardholders.
• Processing :This function processes the transactions related to credit card.
• Control :This function monitors the cardholders and merchant activities.It also deals with collection of dues and control of fraudulent activities.

Himalayan bank had issued HBL regular card in an November 1993,Which has a membership of 1258.The HBL gold card issued in November 1997 has 690 members.But both of these credit cards have been phased out because of problems associated with security and fraud.Visa classic and visa gold have also been phased out.At present Himalayan bank deals with visa international and master card.It has 33 percent share of credit card business in Nepal.The competition is getting together.

How to analyze a strategic case study

A case study is a method for teaching and learning.It describes and organization's situation at a point in time.It describes external and internal environment forces.It raises issues about mission,objectives and strategies.It describes the problems.
The following steps should be followed to analyze the case study:

• Read the case carefully :Determine the main points of the case.It may not provide all the information.Carry out library and internet search.This should be for the decision date of the case.
• Identify the problem :Every case is problem based.Define the main problem clearly.Do not confuse symptoms with the causes.

1.Make reasonable assumptions about unknowns.But state them clearly.

• Analyze the case :Analyze the problem clearly and systematically.Understand all the cause of the problem.

1.Develop a mindset of what,why,when,how,where,who.
2.Use appropriate analytical tools for analysis.They can be ratio analysis for analysis of financial statements.Compare with industry averages.Compared with industry average.

• Examine relevant alternatives:Most problems have a number of alternatives for solution.Present the advantages and disadvantages of relevant alternatives.It can be in terms of productivity,costs,market and others.
• Recommend strategies :Select a course of action in terms of strategy.There is no one best solution to a case.It varies according to situation,time,place and people.Give justification for your recommendation,reason for selecting,and their implications.
  

Concept of strategic choice

Change is making things different.It is departure from status quo.Environment forces change.The effects of change are widespread.Organizations that fail to change,die.Change is a fundamental part of organizational survival.Ability to adapt to change is the essence of organizational effectiveness.
Strategic changes implies change in strategy through diagnosis and management of change needs.It consists of rethinking reviewing,and changing strategy to adapt to environmental changes and the changing resources and competencies.
Types of strategy change

• Adaptation :This change in strategy occurs incrementally.It can be accommodated within the current paradigm.Paradigm refers to rules boundaries,behaviors and the way of doing things.It involves realignment.This is the most common form of change in strategy.
• Reconstruction :This change is strategy occurs rapidly.But it does not lead to fundamental change in paradigm.For example,structural change or cost-cutting program.
• Evaluation :This change in strategy occurs overtime.It requires paradigm change.It is transformational change.Learning organizations continually change their strategies to environmental changes.
• Revaluation :This change in strategy occurs very rapidly with a big bang.It requires fundamental change is paradigm.For example,significant decline in profit may require revolutionary change in strategy.So can of focus from selling to customer satisfaction.
  

Criteria for evaluating strategies

A strategy should be continuously evaluated.The criteria that can be used for evaluating strategy are :

• Consistency :A strategy should not have inconsistent objectives.Inconsistencies are reflected by :

1.Conflicts and interdepartmental bickering.Conflicts are people-based rather than issue based.
2.Suboptimization where one department tries to gain success over others.
3.Top management spending lot of time in solving problems and issues.

• Consonance :If refers to set of treads or individual trends that need examination to evaluate strategy.The strategy should be adaptive capabilities in terms of abilities,competencies,skills and talents to carry out a strategy.
• A strategy must provide strategic advantage.It result from superiority in resources,skills or position.Size can provide positional advantage.The nature of positional advantage in relation to competitors should be examined for evaluation a strategy.
  

Process of evaluation and control

The steps in strategic evaluation and control are:

1. Review assumption :Assumption relate to environmental and organizational factors.Environment is dynamic.There is time lag between strategy formulation and implementation.Assumptions made while formulation lating a strategy may no longer be valid and relevant.Changing assumptions are taken into account.SWOT analysis is revised.
2. Measure performance :Strategic evaluation and control continually evaluates the implementation performance of strategy.Planned results are compared with actual results.It evaluates whether the plans,programms,projects and budget are guiding the organization towards objectives achievement.Implementation gaps are identified.
3. Adjust strategy :Necessary corrective actions are taken to adjust the strategy to new requirements.This is done steer the strategy to the right direction with due consideration to the changing assumptions and implementation gaps.

Strategy valuation can be no better than the information on which it based.Corrective actions are needed when

• External and internal environment factors significantly changes.
• Objectives achievement is not satisfactory.
  

Contemmporary approach of strategic control

Strategic control can be of the following four types in contemporary approach.

1. Premise control :Premises are assumption about anticipated environment.A strategy is expected to be implemented on the basis of these assumption.Premise are forecasting of future expectations about political-legal,economics,socio-cultural and technological forces in the external environment.
2. Implementation control:Implementation control evaluates whether the plan's programmes,projects and budget are guiding the organization towards objective achievement.Resources allocated to then may be withdraw or revised to ensure envisaged benefits to the organization.It involves strategic rethinking.

Tools of implementation control can be :

• Strategic thrusts :The strategic thrusts for implementation are identified and monitored.For example,strategic thrust can be in terms of new product launch or diversification programme.
• Milestone review :Critical milestones is strategy implementation are identified.They can be in terms of events,resource allocation or end-time.They are reviewed to reassess the continued relevant of implementation to objectives achievement.

3.Strategic surveillance :Strategic surveillance monitors a Bord range of events inside and outside the organization which threaten the course of the strategy.It can be :

• Selective surveillance :Monitoring on selected information sources to uncover external events likely to affect the strategy.
• Organizational surveillance:Information generated within the organization is captured for monitoring.

4.Special alert control :Organizations should hopes for the best and prepare for the worst.Sudden and unexpected events create crisis.They threaten the course of strategy.Special alert alert control is trained by detection reassessment of strategy during crisis situations.
Contingency strategy are formulated to handle unforeseen events.The responsibility to handle crisis situation is given to crisis management team.

Traditional approach of strategic control

This approach emphasized operational control to ensure that right things were done at the right time in the right manager.It took corrective actions for variations in performance.This steps are :

1. standards :Standards are set for implementation processes an d results to be measured.Standards are in the form of planners or budgeted performance.They are the performance targets for key performance areas.They are critical to the success of an organization.Performance targets relate to the outputs of an organization.It can be in terms of quality,quality,costs,profits and time.
   
2. Measure actual performance :Actual performance is measured at predetermined times.It provides feedback about performance.
3. Evaluation performance :Actual performance is compared against performance standard.It can to,be higher,or be lower than standard.Deviations,their magnitude,their causes and incidence are analyzed.They can be positive or negative.The responsibility for deviation is located.

• Quantitative criteria :They can be profit,sales,market share,costs,dividends,share value,investment,earning per share,ratios,budget.
  

• Qualitative criteria :They can be product quality,capacity utilization,market attractiveness,motivation,morale,loyalty,efficiency,effectiveness etc.

4.Corrective actions :Corrective actions are taken to bring performance in line with the standards.The actions can be :

• Do nothing :If the deviations are within the allowable tolerance.The deviations is a chance fluctuation.
• Correct deviations :Through design improvements,better materials.Greater employee motivation,more training etc.
• Change standards :To make them appropriate and realistic.Strategies plans and budgets are reformulated.
  

Concept of strategy evaluation and control

Strategic evaluation and control ensure that the right things are done in the right manner and at the right time.It continually assesses the changing environment to uncover events that may significantly affect the course of the strategy.
Strategic evaluation and control is exercise by top management.It is long term oriented.It focuses on external environment.It is proactive and provides early warning about the performance of the strategy.
The characterise of strategy evaluation and control are :

1. Right direction :Strategy evaluation and control ensures that the strategy is moving in the right direction.It is objective oriented.
2. Proactive :Strategy evaluation and control is an early warning system of control.It pro acts by continual questioning the direction of strategy.It is based on timely information.
3. Future oriented:Strategy evaluation and control aims to steer the future direction of strategy.
4. Focus :Strategic evaluation and control focuses on forces and events in the external environment.
5. Time horizon:Strategic evaluation and control has a long term time horizon.
6. Responsibility :Strategic evaluation and control is the responsibility of top management.
7. Techniques :Strategic evaluation and control is based on environment surveillance,premises reexamination,implementation review,information gathering and special alert technique.
8. Corrective actions:They are the essence of strategic evaluation and control.It is action oriented.

• Timely evaluation and control alerts management about problems before they critical.It is essential to face dynamics environments.It ensures environmental relevance.
  

Constraints to leadership

Internal constraints

1. Programmed decisions :If decisions are programmed leaders get little room for exercising leadership.
2. Lack of skill and trains :If leaders lack required skills and traits,effective leadership is constrained.
3. Control over rewards :If leaders lack control over rewards and punishment,leadership is constrained.
4. Work situation :If characteristics of work situation can be changed,leadership is constrained.
5. Decentralization :If the leader wants to do all things by himself,leadership is constrained.This leads to overloading.Teams cannot be built.
6. Organizational changes :If organization is not open to changes in leader behavior,leadership is constrained.

Overcoming leadership constraints

1. Job engineering :Make structure changes in jobs.
2. Control :Give control over reward and punishment to the leader.
3. Reward :Give reward for leader behavior for improving performance.
4. Training :Trains leader to increase his competencies.
5. Situational style :Change leadership style according to situation.
   
6. Decentralization :Devolve decision making authority to lower levels.
7. Transformational leadership :Leaders provide individual consideration and intellectual stimulation to followers.
   

Organizational culture

Organizational culture is a set of values,beliefs,assumptions,and symbols shared in common throughout the organization.It influences opinions and actions of members within the organization.It guides behavior.It has pervasive influence on organizational life through cooperation,control,decision making.Communication and commitment.
Leaders shape organizational culture in the following ways:

1. Emphasizing dominate values:They are key themes or core values.They may be established by the founder of business.They are the source of competitive advantage.They can be :

• Quality :Innovation in product development.Total quality management of product.
• Services :Before,during,or after sales services.Speed in providing services.
• Differentiation :It is relation to competitors.It can be in terms of physical parameters,image,promotion and channels.
• Cost advantage :It can be low cost compared to competitors.
• Disseminating stories and legends :Stories and legends that reinforce desired values and beliefs are disseminated.Organizational members strongly identify with them.
• Institutionalizing practices:Practices that systematically reinforce desired values and beliefs are institutionalized.
• Reward systems and structures:They are used to shape desired organizational cloture.
• Managing strategy culture relationship :They are managed for strategy culture fit.They help strategy implementation.
• Maximizing synergy:Synergistic aspects are maximized.
  

Leadership role in building ethical culture

Ethical involves moral issues and choices.It is a individual's beliefs regarding right and wrong or good and bad.Individual members in organization have ethics.Ethical behavior implies conformity to generally accepted organizational norms.

Leadership role is building ethical can be:

1. Code of ethics :Leaders lay down code of ethics.They shape ethical behavior of the members of the organization.
2. Role model:Leaders provide role models for ethical behavior.This contributes to ethical standards of individual members in the organization.
3. Organizational culture:Leaders shape organizational culture.This promotes ethical culture in the organizational practices.
4. Rewards :Rewards and punishment systems can also promote ethical culture.Leaders decide rewards and punishment.
5. Sets direction by pursuing a road map for future.
6. Designs appropriate organizational structure.
7. Ensures commitment to excellence.
8. Promotes ethics behavior.
   

Leadership

Leadership is an essential of management .It guides and influences employees.It establishes direction,manages changes and builds a team.It is essential to drive strategy implementation forward.Effective leaders carry out the following tasks to effectively implementation strategy.

1. Leading :Guiding,influencing and motivating people for effective implementation.Staying on top of what is happening.Pushing corrective actions.Setting directions.
2. Performance based reward:Tying rewards and incentives to implementation performance.
3. Supportive environment :Creating a strategy supportive work environment.
4. Open communication:Promoting open communication to reduce conflicts and manage change.
5. Environmental adaption:Keep the organization responsive to changing forces that affect implementation.
6. Team building :Achieve synergistic effects through teams building.The organization structure is redesigned.
7. Benchmarking :Instituting best practices and pushing for continuous improvements.Ensuring organizational coomitment to excellence.
8. Shaping organizational culture :Shaping conducive organizational refers to a set of values,beliefs,symbols and assumptions shared in common throughout the organization.It is shaped by:

• Emphasizing dominant values.They reinforce strategic advantage.They can center around quality,cost,speed,differentiation,service,efficiency.
• Institutionalizing practices that reinforce desired values and beliefs.Stories and legends are disseminated.
• Using rewards systems and structures.
• Managing strategy culture relationships for strategy culture fit.
• Promoting ethical behavior.
  

Essentials of effective implementation team based structure

A team is a group whose individual effects result in positive synergy through coordinates efforts.Its characteristics are :

• Collective performance to achieve team objectives.
• Little or no supervision with individual and mutual accountability.
• Shared leadership roles.Decision through discussion.
• Member skills are multiple and complementary.
• Outcomes is positive synergy through coordinated effects.

Cross functional teams are used to implement strategy.They consist of member from different departments and works areas.They are o0f the sane level.They come together to accomplish specific tasks.Member are experts in various specialties.They are carefully selected.
Advantages

1. Member of the team work collectively to achieve team objectives.
2. Team has authority to makes decisions.
3. There is no rigid hierarchy.
4. Employee talents and skills are better utilized.
5. Performance evaluation is by members themselves.
6. Productivity and satisfaction is high.

Disadvantages

1. Teams may duplication the effects of departments.
2. Team effectiveness is situational.
3. Conflicts may arias between team and department.
4. Teams may work as islands.
   

Essentials of effective implementation matrix structure

It is a combination of structures.It superimposes project structure on functional structure.It integrates knowledge and skills by temporarily assigning people from functional departments to work on project.It provides skills and resources where and when they are most needed.
Advantages

1. Environmental adaptation is facilities.
2. Flexibility organization wide.Accommodates wide variety of projects.
3. Efficiency motivation of resources.
4. Effective use of specialization human resource.
5. Increased motivation an commitment.
6. Employees development through involvement in decisions.Training ground for mangers.
7. Quality decisions are possible.Fosters creativity.

Disadvantage

1. Takes longer to make decisions;confusion and contradictory.
2. Two bosses for one employee functional manager and project manager.Dual channels of authority and control.
3. Power struggle for allocation of resources.
4. Duplication of efforts,dilution of priorities.Loss of account-ability.
5. Costly and difficult to implement.
6. Conflicts arise due to unclear roles and responsibility.
   

Essentials of effective implementation divisional structure

It is composed of self-contained divisions based on products,technology or geographical areas.Each strategic business business unit can be regarded a division.It allows customized product market strategic for each division.It is suitable for multi-business organizations.
Advantages

1. Effective management of diversity.It tailors structure to needs of markets,products and ares.
2. High product/market visibility through concentration.
3. Facilities attention to strategy by senior management.
4. Facilities performance measurement of divisions.Focuses accountability for performance.
5. Management development encouraged by specialization within a division.

Disadvantages

1. Conflict between divisions due to poor communication.
2. Poor coordination of activities among divisions.They tend to become independent business.
3. Confusion over locus of responsibility.
4. Costly due to duplication of activities.Layers of management also add to costs.
   

Essentials of effective implementation functional structure

It is based on functional of an organization.Functions are primary activities,such as production,marketing,finance,and human resource.The chief executive has line managers under him.This structure is suitable for smaller companies with narrow product range and single dominate business.
Advantages

1. There is clear definition of authority,responsibility,roles and tasks.Functional exports is developed.
2. Specialists manage senior and middle levels.Efficiency is achieved through specialization.
3. There is direct supervision and control by chief executive.
4. Career development of functional mangers is facilities.

Disadvantage

1. Managers are overburdened with routine matters.They neglect strategic issues.Narrow specialization is promoted.
2. Coordination is poor between functions.
3. It is difficult to cope diversity due functional focus of manager.
4. Failure to adapt with environmental changes.
5. Decision delays are common due to functional rivalry and conflict.
   

Essentials of effective implementation simple structure

In simple structure,the organization is run by the personal control of an individual.The owner takes most of the responsibilities of management.He may be assisted by assistants.The organization configuration centres on individual relationships and informal process.Small business under this structure.
Advantages

1. This owner exercise direct control.
2. Decision marketing is speedy.
3. Motivation of the owner is high.
4. Personal relationships are developed with supplies and customers through direct communication.

Disadvantages

1. This structure operates effectively only up to a certain size.
2. There is no division of work.
3. Authority and responsibility is not clear among subordinates .
4. There poor motivates in subordinates.
   

Methods for resource allocation to SBUs

The methods for allocating resource allocation to SBUs can by :

1. Strategic budgeting :The SBU managers prepare operational plans and targets.They are coordinated with corporate objectives and plane.The strategic budget is prepared and presented to top management for approval.This budget allocated resources to SBU.
2. Capital budgeting based resources allocation:This methods is used to allocated resources to SBUs for new capital project.It use the technology of pay back period,internal rate of return and discounted cash flow.Time value allocated on the basis of approved capital budget.
3. Programme budgeting based resource allocation:The resource allocation is made to various approved future programmes of SBUs.Objectives,costs and likely impact of each programme are carefully specified.It is also known as PPBS (Planing programing budgeting system).
4. Zero based budgeting resource allocation:The SBU budget start from zero base.Each future programme has to be justified in term of benefits and costs to warrant allocation of resources.Low priority activities are eliminated.
5. BCG matrix based resource allocation:This matrix is used for resource allocation to SBUs.Based on relative market share and market growth rate,the SBUs are classified into "stars","question marks","cash cows"and"dogs".

• Stars and question marks SBUs are allocated more resources to build and sustain market share.Cash cows are allocated present level of resources to defined and preserve market share.Dogs to not get any resources.They are liquidated.
  

6. Product life cycle based resource allocation :Resource allocation is liked to different stages in the life cycle of SBUs products.The stages can be introduction ,growth,maturity and decline.

• More resources are allocated at introduction and growth stages less resources are allocated at maturity stage.The product in phased out at decline stage and receive no resources allocation.
  

Resource planing at business level

Resource planing at business level consists of allocating resources to each strategic business unit.The corporate level resources plan serve as the blueprints for resources allocation to SBUs.Various methods are available for resource allocation to SBUs.

Approach to resource allocation :There are approaches for allocating resources to SBUs.

1. Top down approach :The top management at corporate level decides the requirements and allocates resources accordingly to SBUs.
   
2. Bottom up approach :The operating levels at SBU determine their resource requirements.They are aggregated.Resources allocation accordingly.
3. Mixed approach :It is a mix of top down and bottom up approaches.It involves an interactive form of decision making.A series of negotiations take place between corporate managers and SBU managers to make decisions about allocating resources to SBUs.
   

Resource planing at corpoarte level

The resource planing corporate level are :

1. Assess available resources:Available resources are deployed resources into the activities and operations of an organization.They are currently owned by the organizations.The starting point of a resource plan is to assess the available resources of an organization.
2. Forecast future resources needs :Forecasts are made for the resources needs to implementation the selected strategy.Various statical techniques are available for resource forecasting.The judgement and experience of managers can also be useful.Critical success factors are important to forecast future resources needs.Planing priorities also determine resources needs.
3. Identify resource gap:Resource gap is the difference between needed resource and available resources to implementation strategy.It is determine resource.
4. Determine and evaluate alternative sources:Alternative future sources to mobilize resource are determined.Source can be external and internal.Internal sources consist of retained earning,reserves and provision.External sources can be capital market for equity and long term loan,and money market for bank credit and trade credit.The most activities sources are identified.Evaluation is done in terms of risks,credit and trade credit.For financial resources,the mix of equity and loan is considered.Time value of money is considered for capital expenditure projects.
   

Factors affecting resource allocation

The following factors affect resource allocation:

1. Objectives :Resource allocation must be oriented to objectives achievement.Objectives should be clearly laid down with strategic priorities for resource allocation.Critical success factors are considered.
2. Managerial preferences :Top managers who are dominated in strategy formulation tend t affect resources allocation.Their preferences attract more resources for their pet projects.
3. Internal policies :Resources area a symbol of power.Internal policies based on negotiations and bargaining affects resources allocation.
4. External influences :The demands of stakeholders also affect resource allocation.They can be owners,suppliers,customers,employees,bankers and community.Legal requirements may require additional resources allocation.For example pollution control,safety and labour welfare requirement.
   

Challaenges of intergration for strategy implementation

Strategic implementation requires an integrated thrust for unity of action and harmonization of efforts.The resources and competencies of strategic business units their functions need to be linked together to attain synergistic effects.
Challenges in integration can be as follows :

1. Cross SBU challenges of integration :Problems occur horizontally where SBUs are at the same level of hierarchy.Conflicts and misunderstandings among SBUs lead to dysfunctional consequences.Problems of integration can be handles by :

• Forming committees and task forces.
• Developing effective information systems in SBUs.
• Giving a liaison to a designated manager who acts as a facilitator to promote integration.
• Effective communication among SBUs.

2.Cross functional challenges of integration :Problems occur both vertically and horizontally among functions of an SBU.Each function may try to sub optimize.This can lead to conflicts.Such problems can be hand lead by :

• Effective communication among functions.
• Standardized policies,rules integration problems.
• Simplified structure of SBU.
• Decentralization.
• Reward system for compliance of performance standards that promote voluntary coordination.
• Reincarnating.
  

Role of policies in strategy implementation

Policies are empowerment tools.They simplify decision making.The guide the decision and action of mangers their subordinates in strategy implementation.They provide standard operating procedures.They are generally formal and written.The roles of policies in strategy implementation are:

1. Policies promote uniform handing of similar activities.This coordinates tasks.Frictions are reduced.
2. Policies ensure quicker decisions by standardizing answer to routine problems.They empower employees.
3. Policies reduce uncertainty in day-to-day decision making.They provide predetermined answer.
4. Policies establish consistent pattern of managerial actions.
5. policies reduces resistance to organizational strategies.
6. Policies establish indirect control over independent action.Misunderstanding.They improve job performance.
7. Policies help understand the business environment.
   

Tactical aspects of strategy implementation

The tactical of strategy implementation are:

1. Structure :The structure of the organization should be strategy friendly.The basis of structuring should be appropriate for putting strategy into action.The structure making should be decentralised.
2. Resources plans :They serve as framework for mobilising and allocating resources.Actions plans need to be prepared for various operational activities of the organization.Methods of resource allocation to SBUs and functions should be carefully determined.
3. Management system :The management system should be effective for operationalising strategy.

• Human resource management should be pro-strategy.
• Employees should have competency in operational activities.
• Information management should be developed based on informational technology.
• Leadership should have ability to motivate employees towards strategy implementation.
• Rule,regulation and procedures should be changed to facilitate operationlizing of strategy.
• Management should develop strategy supportive organization culture for operationalizing strategy.

4.Re engineering :Jobs and work processes should be radically redesigned to ope rationalize strategy.A start is made with a clean slate.The focus is on processes that create customer value.A top down approach is taken.

Operationalizing strategy

Strategic advantage is achieved at the operational level of the organization.If the operational aspects are not in line with the strategy,the implementation of strategy will not be effective.
The following factors are important for operational strategy.

1. Short term objectives :Long term objectives are translated into short term objective.They set annual targets for action.They provide specifics guidance for what is to be done.They ope rationalise long term objectives.They are measurable and prioritized.They assist strategy implementation by providing.

• Targets for year,month or week.
• Coordination to avoid conflicts.
• Measurable outcomes for functional activities for control purposes.

Action plans are based on short term objectives.Such plans identify:

• Specifics activities to be undertaken.
• Clear time frame for completion of activities.
• Responsibility for carrying out each activity.

Benefits

• They clarify of operating personnel.
• Conflicts can be addressed while developing them.
• They provide basis for control.
• They motivate for higher performance when liked with reward system.
  

Establishing management system

A management system is established for strategy implementation.A strong management team is put together.
Team members can come from within the organization or they can be outsiders.The term should have the right mix of skills with potential to developed.
The management performs the following function.

1. Human resources management :The employees are acquired developed,utilised and rain ted.

• Acquiring competent employees :Talented,experienced and competent employees are acquired for the organization.
• Developed of employees :Training and management development is made a continuous process to develop employees.This is essential to develop knowledge base and build human capital.
• Utilization of employees :Motivation is the key factors for effectively utilizing people.They are given challenging,interesting and creative job assignments.
• Retention of employees:The salary,benefits,service and incentives help retain high-potential ad high performance employees.

2.Information management :It is done through the use of information technology.
3.Leadership :It is exercised through guiding and influencing employees.It shapes organization culture.

Designing structure

Structure is a mean to implement strategy.It defines activities,levels,roles and reporting relationship.It facilitates resource allocation.Dimensions of structure are :

• Job design :Job required to implement strategy are defined.division of work is done.
• Job grouping :Similar jobs are grouped in departments.They can be production,marketing,finance,human resource,research and development.Jobs are assigned to people and position.
• Relationships :Authority responsibility relationships are established.A hierarchy is established which specifics who reports to whom.Span of control is decided.This provides formulation to the structure.

Modern structures reflex external focus.Flexible interaction,interdependency and bottom up approach.Globalisation,Internet and complexity have generally affects structures.Large organizations are getting complex.
Resources are important for strategy implementation.Resource plans are prepared to predetermine future resource needs.They serve as a framework for mobilizing and allocating.