Strategy implementation with reference to the Grainco Group

Van Schaik, Henri (2009-12)

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.

Thesis

ENGLISH ABSTRACT: Successful strategy implementation is necessary in order for a strategic plan to be worthwhile for a business. Research has indicated that companies are often weak at strategic execution and it is held that weak execution is often the reason for a failed strategy or business. The execution of a strategy is, however, far more complex and difficult than the formulation of a good strategy. A reason for this is the fact that relatively few conceptual models for strategy execution exist while this field attracts less attention in research than the field of strategy formulation. Recent publications focus narrowly on specific areas such as leadership or performance measurement and fail to integrate these traditional views on business management into a single model for strategy implementation. GrainCo Group, a grain supply chain management company, does not follow a pre-defined strategy execution methodology and could, as a result, be missing out on profitable business opportunities. The group’s management team agrees that its ability to successfully execute strategy is hampered by a lack of such a methodology. This forms the basis for this research report where the question asked is the following: What framework can GrainCo Group adopt in an effort to improve strategy execution in the Group? It was found that strategy execution spans all aspects of business management and cannot be viewed in isolation. Strategy implementation should therefore be seen as an integrated, boundary-less set of activities where information flows unrestricted between all business units and constant focus is placed on both “hard” and “soft” management issues. Information flows and clarity about decision rights are of critical importance when applying a process perspective to business management. Strategy implementation cannot be viewed as a distinct event and should become inherent in the company’s management style. It was further suggested that the GrainCo Group adopt a combination of two of the most representative strategy implementation methodologies together with changes to a number of important elements of management style.

AFRIKAANSE OPSOMMING: Die vermoë om ‘n sakestrategie suksesvol uit te voer is ‘n noodsaaklike voorvereiste vir ‘n strategiese plan om van waarde te wees. Navorsing het aangedui dat maatskappye dikwels nie goed vaar in die uitvoering van sakestrategie nie en dat swak uitvoering dikwels lei to die ondergang van ‘n besigheid of strategie. Die uitvoering van ‘n strategie is egter baie meer kompleks as die blote formulering daarvan. ‘n Rede vir bogenoemde is die feit dat daar relatief min konseptuele modelle vir die uitvoering van sakestrategie bestaan terwyl hierdie veld minder aandag trek in navorsing as die formulering van strategie. Onlangse publikasies fokus op spesifieke areas soos leierskap en prestasiemeting en slaag nie daarin om hierdie tradisionele areas van bestuur te kombineer in ‘n enkele model vir die uitvoering van sakestrategie nie. GrainCo Groep, ‘n graan-voorsieningsketting bestuursmaatskappy, maak tans nie gebruik van ‘n spesifieke model vir die uitvoering van sakestrategie nie en die groep se bestuurspan stem saam dat sy vermoë om strategie suksesvol uit te voer hierdeur ondermyn word. Voorgenoemde vorm die basis van hierdie navorsingsverslag waarin die volgende vraag gevra word: Watter raamwerk vir die uitvoering van sakestrategie kan die GrainCo Groep aawend om meer suksesvol te wees met die uitvoering van strategie? Navorsing het getoon dat die uitvoering van strategie alle aspekte van sakebestuur aanraak en dat dit nie in isolasie gesien kan word nie. Uitvoering behoort gevolglik gesien te word as ‘n grenslose, geïntegreerde reeks van aktiwiteite waar inligting onbelemmer vloei tussen alle sake-eenhede terwyl gereelde aandag gegee word aan die “harde” en “sagte” aspekte van sakebestuur. Die vloei van inligting en duidelikheid oor besluitnemingsregte is van kritieke belang in so ‘n geïntegreerde model. Die uitvoering van strategie kan ook nie in isolasie gesien word nie en behoort ‘n integrale deel te vorm van ‘n onderneming se bestuurstyl. Dit word voorgestel dat die GrainCo Groep ‘n kombinasie van die twee mees verteenwoordigende modelle vir die uitvoering van sakestrategie aanneem tesame met die aanpassing van ‘n aantal belangrike elemente van die maatskappy se bestuurstyl.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/1026
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