STRATEJİK YÖNETİM

Strategy generation and selection

It is a  prescribed and evidence-based action.

Mainly an intellectual process

Financial, R&D, HR, Operational, Marketing and Technological

Competitive advantage

The status of the organization on a
centralization- decentralization base.

Complexity

Divisional structure

Shared authority, and dual lines can create obstacles.

Long term, costly, maximizes career development

It is essential to highlight that strategic implementation means putting the strategy into action. For this reason, there is a unified alliance with the formulation step where the most appropriate option is chosen via strategic analysis. However, the formulation is not enough alone because managers and the employees are conducting those strategies to realize them. To do this, they need to be motivated, positioned in the right structure with the right strategy, working in a strategy supportive culture, ready to adopt new processes, and prepared to change.

The deliberate strategy, which is also known as the intended form of strategy, is set after the environment analysis is combined with the mission, which is a very prescribed and evidence-based action. In contrast, in emergent strategy, the environment is uncertain, and the information is always changing, which can cause crises for organizations. Some industries, such as IT, pharmaceuticals, or digital commerce, are fastchanging, so there is no guarantee for success. For success, learning is vital, and empowerment is a key factor in emergent strategy implementation. In other words, deliberate strategies are often prepared in detail, whereas emergent strategies occur for various reasons.

According to Bedeian and Glueck (1983) objectives: • serve as guidelines for doing what, when, how and by whom of actions, • direct efforts and activities of organization members, • are a source of legitimacy for all stakeholders, • set work, and time, therefore it leads the performance; • through performance, employees are being identified and motivated, • the hierarchy of objectives serve as a stage to perform, • provide a cornerstone for organizational design.

Distributing the right resource to the right purpose and then controlling and making changes due to internal and external environmental changes can be defined as resource allocation.

A structure can be described as the backbone of the strategy formulation and implementation steps. Managers generate strategies according to the current structure of the organization. Structure fundamentally differs on the type of organization (small, medium-sized, MNCs, etc.). Each size requires some form of structure, such as simple structure, functional structure, and multidivisional structure, as in the given types above.

The complexity refers to the level of formal hierarchy in an organization which is also related to the formalization degree.

In this structure, all the services are separate in the core; however, they are the rings of the chain (organization) and need to be powerful. Therefore, coordination and controlling is an advantage as it is simple and cost-friendly. The authority is centralized, so the communication can be problematic as the specialization may diverse the shared thinking, and the working together may fail.

Divisional structure is a popular structure for organizations with several products or services which may or may not be related. These structures are common in multi-national or holding type organizations. A divisional structure has some advantages as decentralizing, which allows managing and controlling according to each divisions’ objectives. However, to do so, more skilled employees are needed in order to take part in the decision making process and delegation of authority. One more advantage of divisions is to be able to control the local factors, which turns out a critical competitive advantage for decades.

Matrix structures are usually internalized in fast-changing sectors such as technology.

Organizational culture influences the following factors (Campbell, Stonehouse & Houston, 2002, p.55): • employee motivation, • the attractiveness of the organization as an employer and hence the rate of staff turnover, • morale, career development and goodwill of employees, • efficiency and productivity, • work quality, • interpersonal and inter-organizational relations, • workplace attitude of employees, • innovation and creativity.