The Implementation Of The Business Strategy

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THE IMPLEMENTATION OF THE BUSINESS STRATEGY

One could think that the greatest challenge in the business world is the creation of a strategy, but not. The biggest challenge in the business world is to implement the strategy. According to Maldonado (2018), the implementation of a strategy implies developing a culture that supports the strategy, creating an effective organizational structure, modifying marketing activities, preparing budgets, developing information systems and using them, as well as linking the remuneration of theemployees with the results of the organization. In other words, the implementation of a strategy is the support that supports the strategy. Which allows the objectives and actions to be given. Faced with that reality, some questions arises that this writing will try to answer. The first question, the structure vs. the strategy. Is it that the structure follows the strategy or is, on the contrary, that the strategy follows the structure? The second question is the ability to encourage innovation. What can be done to encourage innovation in large companies? And finally, is it possible for a business unit to follow a total cost leadership strategy and a simultaneously differentiation and high quality strategy?

There is a broad debate between the relationship of the strategy and the structure. From the work carried out by Chandler (1962), a number of studies carried out support his thesis: the structure follows the strategy, but in turn other studies have been carried out in which they maintain that the strategy follows the structure, sinceThe structure can directly impact the decision -making strategy. From a while it has been indicated that the relationship between the two is reciprocal, since the structure can determine communication and coordination and strategy can adopt and determine mechanisms of structure, analysis of decisions, among others (Miller, 1987). We can say that both complement each other and are aligned in contributing to the company’s performance.

Two perspectives have been considered around the strategy-structure relationship. One of the perspectives considers the content of the strategy and the other is set in the development of the strategic content. Chandler (1962), found that the companies in their study that had a growth following the expansion of new products and/or new markets, in order to deal with strategic changes developed different structures, this created the need for divisionalized structures,decentralized and of greater complexity. This is why Chandler proposed that the structure follow the strategy.

We can indicate that among the variables that make up the structure and strategy there are implications for company performance. For a company to obtain success, it is important that decision -making, formulation, implementation and evaluation, by the senior executives aligned to the processes of both the structure and the strategy, since both complement each other and the sameFollow the strategy as the strategy can follow the structure everything will depend on the approach to which the company is directed.

The word innovate makes the world continue to develop. Governments, companies and/or people who want to examine new directions and dare to break established stereotypes, get more successes and achievements. For this reason, innovation is one of the best alternatives that organizations can choose for their growth and evolution. When the term innovar comes to mind, it gives us a little insecurity because it can entail changes changes in both the organization and personally. But what is necessary to face these changes is to have a positive attitude combined with committed strategies and workers. In addition take risks and more than all dare.

According to expert Jamie Flinchbaugh (February, 2015), who is the founder of the Lean Learning Center that he tries to help all companies in the implementation of innovation, says that there are several ways to achieve innovation in companies and thatIt is not just having intelligent managerial employees or new ideas. This expert exposes three fundamental elements when talking about innovation in the company. The first key point is that the company focuses on the consumer. This is achieved by adding value to the client, such as carrying out an investigation of the needs they have. On the other hand, solutions to existing problems inside and outside the company are also essential for innovation. If the organization concentrates on solving the difficulties that others do not attend to it, the organization will then be making new solutions to the conflicts that this action leads to innovation. Last and not least we have learning. When new directions are started on many of the occasions, mistakes are made, but in the same way they are right. That is where the saying enters: ¨ never lost. You always win and learn¨.

So that everything mentioned above is possible to forget the hierarchy of positions and work in union for the development of the new concepts and strategies that go hand in hand with innovation in the company. In summary, organizations that put these key points into practice will have an easier work environment to harvest successes. In addition, companies must understand that not only in great changes is innovation, but there is also innovation in small changes that are more effective in many occasions.

The implementation of the strategy requires that the company establish annual objectives, create policies, motivate employees and assign resources so that the strategies formulated can be executed (David, 2013). What implies developing the strategy? According to David 2013, "the implementation of strategies implies developing a culture that supports the strategy, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and using information systems and linking the remuneration of employees to organizational performance". Faced with that reality, we can conclude: the most important thing is the performance. Therefore, no matter who follows who, structure or strategy. What matters is the final result. Since both complement each other and everything will depend on the company’s approach. Regarding innovation, apart from assuming the risk and development of ideas, companies have to solve three important points to encourage innovation. These three points are aimed at focusing on the consumer, solving the challenges and problems both external, as internal and learning the decisions taken. 

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