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Conditions for Effective Business Strategy Implementation.


Table 1.1: SWOT Matrix



SWOT Analysis

Opportunity (O)

- O1

- O2

- O3

- O4

Risk (T)

- T1

- T2

- T3

- T4

Strengths (S)

- S1

- S2

- S3

- S4

SO coordination

Use the points

strong to take advantage of opportunities

ST coordination

Use strengths to overcome threats

Weaknesses

-W1

-W2

-W3

WO coordination

Take the opportunity to

overcome weaknesses

WT coordination

Minimize points

weak and seek to avoid threats

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Conditions for Effective Business Strategy Implementation.

This process creates four pairs of coordination strategies.

- SO coordination- Maxi-maxi strategy:

Is a strategy that uses an organization's internal strengths to take advantage of external opportunities for expansion and diversification.

- ST coordination - Maxi - mini strategy

Is a strategy that uses the organization's strengths to avoid threats, reduce the impact of threats, this situation shows many obstacles from external conditions.

- WO coordination - Mini-maxi strategy

Is a strategy to improve internal weaknesses by taking advantage of external opportunities.

- WT coordination - Mini-mini strategy

Is a strategy that coordinates the weaknesses and risks of an organization. It is necessary to

Minimize your weaknesses and avoid threats by making plans


defense. This situation shows the weakness within the industry in the conditions

unfavorable external environment

Strategic design includes not only static SWOT analysis but also dynamic analysis. The essence of SWOT analysis is that in order to draft a strategy, people pay attention to forecasting changes in the external environment and internal changes in the organization.

One technique that utilizes the SWOT method for strategic analysis is called TOWS/SWOT analysis, which is a combination of external to internal factor analysis (TOWS) or vice versa “from inside to outside” (SWOT).

5. Conditions for effective implementation of business strategies.

In reality, planning strategic solutions that are suitable for the organization's goals is difficult, and implementing them effectively is even more difficult. Managers at all levels need to perform their tasks well through other functions in management. These functions, fully implemented, have a scientific basis, and are considered necessary conditions for implementing strategic solutions effectively.

5.1. Building and maintaining an effective organizational structure

All forms of organization in general: State management agencies, enterprises, other organizations... can only complete tasks, achieve goals in each period through the implementation of solutions, policies, specific measures... of people. The work of people or members in the organization can achieve high efficiency when managers at all levels build and maintain an effective organizational structure. Building an organizational structure is a process, based on the planning function.

Some requirements when building an organizational structure:

- Suitable for the goals and environmental factors that influence each

period.

- Organizational structure changes according to human factors.

- Build good relationships between levels and departments so that everyone in the organization is enthusiastic and has the opportunity to develop all potential abilities to achieve collective goals with high efficiency.

Thus, the organizational structure is designed primarily around the goals to be achieved.


Yes, activities need to be carried out in each period in accordance with human factors and building good internal relationships to promote the capacity of the organizational structure at a high level.

Process of building organizational structure

The construction of the organizational structure is carried out through the following basic process:

* Divide the organization into departments:

Each department in the organizational structure is a separate field of activity, but is related to each other in the process of performing activities to achieve common goals. Depending on whether the organization is an economic sector, a specific enterprise... the departments in the organizational structure can be divided in different ways. In reality, there is no optimal division method, the administrator needs to study the specific situation to apply the combined methods.

+ First way: divide by the number of people doing the work.

+ Second way: divide departments according to working time.

+ Third way: divide parts by function.

Functional departmentalization is widely applied in different organizations. Functional departments represent specialized areas of activity in the organizational structure, covering the work that an organization performs regularly. Some basic functions of a production-business organization can be divided into departments such as: human resources, marketing, finance, purchasing, production, administration... In each functional department, the administrator can divide into groups according to specific types of work, for example: the marketing department can be divided into (market research group, marketing planning group, advertising group, promotion group...). Depending on the specific type of organization, functional departments will be identified through names appropriate to the content of the work.

+ Fourth way: divide departments by geographical area.

This is a fairly common division of departments in organizations or businesses operating over a wide geographical area. Each department within a geographical area is assigned to a general manager. Organizations and businesses divide


Division in this way when carrying out activities, work in similar geographical areas. Geographic areas can be territories in the domestic market, in other countries in foreign markets. The purpose of division by territory is to encourage the initiative and creativity of managers in the areas, understanding the areas and effectively managing each area.

+ Fifth way: divide departments by product.

Division by product is a common division method applied in multi-industry manufacturing and trading enterprises. Each business line is a part of the organizational structure. Each department is assigned to an administrator responsible for management. The goal of division by product is to improve management efficiency according to manufacturing and trading lines.

+ Sixth way: divide departments by customers

Customer-based departmentalization is applied in businesses that serve many different customer groups such as: consumers, buyers for production, buyers for sale... Customer-based departmentalization shows the manager's concern for the group the business serves. Managers who assign departments to specific customers will have the opportunity to understand the needs and desires of customers in order to serve them better and more effectively.

In short, there are many different ways to divide departments in an organizational structure, depending on the type of organization, the scale of the organization's operations... the responsible administrator will study each method to apply or combine methods suitable to the requirements of a reasonable organizational structure.

Organizational hierarchy and defining the span of management:

Based on the divided departments, the administrator will classify the organization according to the appropriate span of management. The span of management is the limit on the number of people that an administrator can effectively supervise.

The span of management varies according to specific circumstances and each type of department, so the levels in the organization are also determined appropriately. In practice, depending on the necessary level in the organization (senior, middle, and junior levels), the ability of


The administrator, the content of specific jobs... the administrator will determine the management scope and the appropriate number of levels. The more levels, the more management costs increase, the more complicated the communication, the more difficult the planning, monitoring and control. Therefore, organizational decentralization is necessary, but determining how many levels is based on the needs and actual capabilities in management.

Decentralization to administrative levels:

The division of powers is carried out according to the following basic principles:

+ The authority assigned to each administrator must correspond to the task.

services, enabling them to achieve the desired results (according to the objectives).

+ Each position and each department needs to have clearly defined desired results, activities to be performed, specific authorities and power and information relationships with other departments.

+ When there is decentralization and delegation of authority, decisions within the scope of authority

Departmental limits must be issued by managers at each level.

+ Superiors and subordinates are directly and jointly responsible for the assigned powers.

receive and implement within the organization of its department.

+ Authority and responsibility must be commensurate at each level of management.

Thus, in terms of building an organizational structure, the division of power among levels is necessary to ensure the good performance of assigned tasks. The division needs to thoroughly understand the basic principles so that power is divided among levels in accordance with the needs and implementation capabilities. The issue of decentralization in the organizational structure needs to be given due attention by managers of sectors, levels, and specific organizations in the current practical context of our country. Centralization and decentralization are two extremes of an issue. Depending on the actual situation, the level of centralization and decentralization needs to be applied at appropriate levels so that the use of power is effective.

Determine the relationship between levels and departments in the organizational structure:

An organization is a unified entity. Departments and levels are clearly divided according to functions and tasks, but their activities are not completely independent of each other, but have relationships in implementing the common goals of the organization.


Defining this relationship involves doing the following:

+ Line authority and advisory relationship: Line authority is a relationship in which a superior directly supervises a subordinate according to the hierarchy. The nature of the advisory relationship is advisory, the function of those working in a staff is to investigate, research and give advice to the line manager with whom they are responsible. Line managers and advisors need to clearly understand this relationship to avoid conflicts with each other during the working process. In fact, when building an organizational structure, determining the relationship between levels and departments during the operation is very important because it clarifies the functions, tasks, powers and responsibilities of individuals and departments of the organization. If this relationship is not determined, activities in the organizational structure will encounter conflicts and difficulties in the process of implementing common goals.

In short, strategic solutions and policies of a specific industry or organization can only be implemented smoothly when the organizational structure is built completely and reasonably.

5.2. Selecting an effective management team and control methods

* Select management team

For a particular economic management sector or business organization...the conditions for implementing strategic solutions are related to people in the organizational structure.

People at all levels in the organization need to be recruited and selected based on

on two basic factors: Quantity, quality (virtue and talent).

People at the management level or managers at all levels play a very important role in the effective management of an organization. A wrong behavior of a worker only has a bad effect on the product or the production line of the related product. But a wrong behavior of a manager, especially a senior manager, will have a bad effect on the entire performance of the organization.

Management is a profession, this work is necessary but extremely troublesome and


stress. To be a good manager, people must have the necessary standards.

Management is a profession, but not everyone can do management well. Therefore, within the scope of a specific industry or organization, the work of determining the needs and selecting managers is extremely important. This work is related to the responsibility of senior managers (the human resources department only plays a supporting role).

Thus, the human resource management process is affected by the external and internal environment of the organization. In this process, the person responsible for implementation needs to pay attention to the following steps:

+ Based on the organizational structure plan to determine the need for the number of managers needed in departments at different levels.

+ Identify sources of managers inside and outside the organization.

+ Determine requirements for managers: this is an extremely important step, determined according to the following contents:

First: Professional ethics.

Second: Necessary skills of managers according to organizational levels:

Thinking skills, interpersonal skills, technical skills.

Depending on the type of job and specific management level, the requirements for skills and thinking have different content and levels, but human relations skills are the same.

Third: The personal characteristics required of a manager are the same at all levels and in all departments. They include: Having the desire to do effective management work, having empathy in dealing with people or events, being straightforward and honest, and knowing how to accumulate work experience creatively.

+ Carry out recruitment, arrangement, training and development, promotion. This is a technical work step, depending on the external or internal human resource supply, the appropriate implementation content will be determined.

In summary: Scientifically based selection of managers at all levels is a necessary requirement.


essential and extremely important because the work efficiency of the administrator is closely linked to

organizational effectiveness

6. Build a testing system

In the process of establishing and implementing strategies, one of the key issues to ensure the successful implementation of the chosen strategy and the achievement of strategic objectives. The strategic control process is ensured through the use of control systems and control tools.

This is the third condition that helps managers of organizations to be able to implement solutions.

effective strategy

One of the biggest concerns of managers when building a strategy for a business is how to ensure the implementation of the set strategic goals. This requires regular checks: checks are carried out before, during and after the implementation of strategic plans, operational plans, organizational structure plans, control methods plans...

Stages of the control process, to perform the role of evaluation, monitoring and adjustment, the strategic control process is carried out through the following four main stages:

- Set standards and targets

- Build metrics and monitoring systems

- Compare reality with target

- Evaluate results and adjust if necessary

The purpose of inspection and control is to evaluate the reasonableness and measure the effectiveness of the implementation of various plans. If the administrator discovers any unreasonable or deviations from the target, appropriate corrective measures will be taken.

Inspections should be carried out regularly, periodically or suddenly depending on the content or activities to be inspected. Inspections should be carried out at all levels and departments in the organization.

The basic forms that need to be followed are:

+ Check the plans: after building the plans in order in

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