Strategic Implementation

ACCA - F1   ACCOUNTANT  IN  BUSINESS

Firm establishes position to best meet competitive forces within industry. Porter's five forces define position of a firm. Once firm's position is analysed and alternatives strategies are identified, next step is to choose best strategy that fits within changing business environment. The best strategic choice configures value chain system with firm's position to maximise profit. Implementing chosen strategy uses resources and competencies of the organisation to achieve competitive advantage.

At top layer, executives define strategy to fulfill stakeholder's need. To implementation strategy is  turned into number of successive actions. Management at middle level communicates policies and procedures of scheduled actions. Key action involves changes in business primary value activities and secondary value activities.

Implementation of strategy has direct impact on bottom layer staffs. It may results change in practice and culture existing in the firm. It may require recruitment, training and motivation.

Porter's five forces together with value chain and generic strategy focus on external factors to change in business strategy. It emphasis on macro-economic changes. In open system, these changes are easy to duplicate by any firm within the industry. Therefore, this strategy is also considered as outside-in strategy. Alternative strategy looks at firms core capabilities and unique resources and is known as inside out strategy. This strategy is hard to imitate. We will visit this topic in future article.