Homework Chapter 10 Implementation môn Principles of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Homework Chapter 10 Implementation Questions:
1. How does the concept “translate thought into action” bear on the relationship between business
strategy and operating strategy? Between long-term and short-term objectives? Give examples to support your answer? Answer: •
About the relationship between business strategy and operating strategy:
Business strategy is strategy formulation, expanding a business plan to last for three to five years,
while an operations strategy refers to the system an organization implements to achieve its short-
term objective and functional tactics. oOperations strategy underlies overall business strategy, and
both are critical for a company to compete in an alternating change market.
Hence the concept of translating thought into action focuses on the realization of the vision thought
by the founders of the organization to put into practice. In short, it is making a strategy to realize the
vision. To achieve this, five considerations are indicated: 1. Short-term objective 2. Functional tactics
3. Outsourcing of selected functional activities 4. Employee empowerment
5. Compensation rewards action and results.
For example, a sewing company put the business strategy to grow up sales from 1000 units to
10000 units in 5 years. Assume that the sales will increase a constant additional 1000 units every
year. Thereby, they established an operation strategy or short-term objective which is increasing
productive 1000 units per year. Next, functional tactics in each functional area are provided to
achieve the short-term objective such as human resources, equipment to adapt to the requirement, or
even marketing planning to increase sales. And these activities might be from outsourcing to meet
the short-term objective considered and evaluated by the management teams. Besides that, to reduce
the uncertainty in repetitive and day-to-day decision-making or establish indirect control over
independent action, the firm can empower managers. Compensation rewards like stocks can give to employees to motivate them.
• About the relationship between long-term objectives and short-term objectives: 1
Long-term objectives are critical to planning a prosperous future for any business. To make that
happen or "translate thought into actions", the people in an organization who actually "do the work"
of the business need guidance in exactly what they need to do. Short-term objectives, which are
measurable outcomes achievable or intended to be achieved in one year or less, help with this.
Short-term objectives are derived from long-term objectives, which are then translated into current
actions and goals. They differ from long-term objectives in the time frame, specificity, and
measurement. They must be integrated and coordinated for the effective implementation of
strategies. It should also be consistent, measurable, and prioritized.
For instance, a firm wants to increase the number of consumers from 1 billion to 5 billion in 5 years
- here is a long-term objective. They need a specific plan for 5 years of marketing and selling to
reach the goals. In the 1st year, the users might increase from 1 billion to 2 billion and continuously
increase the constant in the next 5 years target. Hence, a short-term objective was established based on the long-term objective.
2. What key concerns must functional tactics address in marketing? Finance? POM? Personnel? Answer:
The concerns in marketing may include target markets, product positioning, and pricing strategy.
"Key concerns in finance may include working capital management, capital budgeting, and
financial planning and control."
Capacity planning, inventory control, and scheduling may be three of the considerations in
POM.Recruitment and selection, training and development, as well as compensation and benefits, may be concerns in personnel.
In marketing, these concerns might include target markets, product positioning, and pricing strategy.
Assuming the organization has a marketing department, the marketing department will be
responsible for planning and executing marketing campaigns. In order to do this successfully, the
department must consider the company's target markets, what product or service the company is
selling, and how to price the product or service. If the company does not have a marketing
department, then these concerns will fall to the business owner or another designated individual.
"The finance department is responsible for financial planning and control, capital budgeting, and
working capital management." Financial planning and control includes creating budgets and
forecasting future income and expenses. Capital budgeting is the process of deciding which long-
term investments the company should make. Working capital management is the process of
managing the company's day-to-day finances, such as Accounts Receivable and Accounts Payable.
The POM department is responsible for capacity planning, inventory management, and
scheduling. Capacity planning is the process of determining how much of a product or service the
company can produce. Inventory management is the process of keeping track of the company's
inventory and ensuring that it is at an optimal level. Scheduling is the process of creating a
production schedule that meets customer demand.
"The personnel department is responsible for recruitment and selection, training and
development, and compensation and benefits." Recruitment and selection is the process of finding
and hiring employees. Training and development is the process of providing employees with the 2
skills and knowledge they need to do their jobs. Compensation and benefits is the process of
designing and administering employee compensation and benefits packages.
"Key concerns in finance may include working capital management, capital budgeting, and
financial planning and control." The POM department is responsible for capacity planning,
inventory management, and scheduling.
3. What is “outsourcing?” Why has it become a key element in shaping functional tactics within most business firms today? Answer:
a. Contracting with a different business or person to deliver goods or services that are traditionally
handled by in-house workers is known as outsourcing.
Businesses of all sizes have been increasingly turning to outsourcing in recent years. The main
benefit of outsourcing is the possibility for cost savings by hiring a different business or person to
deliver services or goods that are traditionally handled by in-house workers. A corporation may save
money through outsourcing for a variety of reasons. First, corporations can frequently reduce labor
expenses by outsourcing to nations with lower labor prices. Second, companies can avoid the
expenses related to hiring, training, and keeping a workforce of internal workers. Finally, by hiring
independent contractors instead of hiring full-time employees, businesses can save money on
benefits and other overhead costs. Outsourcing may have a lot of negative effects. First, there is a
chance that the services or goods the outsourced company provides will be of poorer quality than
those that internal workers may be able to deliver. The danger that the outsourced firm won't be able
to achieve the deadlines or requirements established by the business is the second. The final risk is
that the company will lose control over the outsourcing process and won't be able to adjust or deal
with issues as they develop. Making a decision to outsource requires thorough consideration of the
particular demands and objectives of the company. When done properly, outsourcing can increase a
company's productivity and quality at a low cost. But when done incorrectly, outsourcing can result
in annoyance, lost time and money, and a loss of control over critical facets of the company.
b.There are a number of reasons why, in today's corporate world, outsourcing has become a crucial
component in defining functional strategies. First of all, it can help businesses cut labor
expenditures. Second, it can aid companies in boosting production and efficiency. Thirdly, it can
assist companies in reaching out to new markets and clientele. And finally, it can aid companies in
enhancing their competitive edge.
Businesses can reduce labor costs through outsourcing. Businesses can reduce the overhead costs
involved with keeping a full-time in-house team by hiring another company or person to supply
services or goods that are traditionally performed by in-house workers. Additionally, by letting
firms concentrate on their core capabilities and outsourcing non-essential operations, outsourcing
can help businesses boost efficiency and production. By giving access to fresh talent and innovative
ideas, outsourcing can also assist firms in reaching out to new markets and clientele. Finally, by
giving access to new technology and procedures, outsourcing can help organizations strengthen their competitive edge. 3
Management of human resources, facilities, supply chains, accounting, customer service and
support, marketing, computer-aided design, research, content creation, engineering, diagnostic
services, and legal paperwork are a few common outsourcing operations. Contracting out business
operations and processes to outside vendors is known as outsourcing. The advantages of
outsourcing can be significant, ranging from cost reductions and increased efficiency to a stronger
competitive advantage. The most prevalent form of outsourcing is business process outsourcing. It
means hiring a third-party service provider to handle any business process. This kind typically deals
with routine work like administrative and customer service jobs.
Outsourcing locally. Local outsourcing, also known as onshore outsourcing or onshore contracting,
is the opposite of offshore outsourcing. Offshore outsourcing and nearshore outsourcing are further choices.
Here are a few examples of additional factors that influence the decision of many businesses to outsource:
A business may be expanding faster than it can handle with its current workforce. In order to
stay up, a business can choose to engage a pre-trained workforce from an outsourcing firm,
which it can then deploy as needed throughout its operations without pausing the submission of its business.
It is more effective to hire a group of temporary workers to complete any short-term
initiatives a firm may have. Instead of spending time, money, and resources training its staff,
a business can outsource the task when performing a new process to workers who have
received the necessary training.
To lower risk, certain businesses will occasionally choose to outsource some tasks.
With the aforementioned advantages, businesses frequently choose to outsource more tasks
or parts of their operations in order to concentrate their resources and increase their competitive advantage.
4. How do policies aid strategy implementation? Illustrate your answer by giving specific example? Answer:
Policies are broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive
managerial decision-making. Policies are directly designed to guide the thinking, decisions, and
actions of managers and their subordinates in implementing a firm’s strategy – also known as
standard operating procedures (SOP). Policies should be derived from functional tactics with the key
purpose of aiding strategy implementation. Through the policies, empowerment is provided to
control decisions in which operational personnel can executive business activities. It can be
proceeded in several ways as below:
1. Policies establish indirect control over independent action by clearly stating how things are to be
done now. For example, a timekeeping policy in companies helps to manage the working hours of
employees. Or the process in production policy in the factory that compulsive the employees follow strictly step by step.
2. Policies promote uniform handling of similar activities. For instance, overtime policy, sabbatical
leave policy, or recruiting policy helps the managers’ decision-making rapidly and equally. 4
3. Policies ensure quicker decisions by standardizing answers to previously answered questions that
otherwise would recur and be pushed up the management hierarchy again and again. Some examples
of this kind are the Operating Principles policy and empowering policy. if having empower suitable
for the position, the managers can decide rapidly.
4. Policies institutionalize basic aspects of organization behaviors: job leveling policies or
organization of human resource policies. That helps to minimize conflicting practices and establishes
a consistent model of action in an attempt to make the strategy work.
5. Policies reduce uncertainty in repetitive and day-to-day decision-making, thereby providing a
necessary foundation for coordinated, efficient effort and freeing personnel to act. For instance, the
annual leave policy and maternity policy could help to do it while still ensuring the human resources to implement.
6. Policies counteract resistance to or rejection of chosen strategies by organization members.
Particularly, the stockholder in the annual meeting or ballot for the board of directors will have many
arguments, thereby voting policy is needed that makes justice.
7. Policies offer predetermined answers to routine problems. Nike's return policy and Uber's refund
policy are examples of this kind, which helps the operating personnel cope with normal problems or
even be the reference to deal with unexpected problems.
8. Policies afford managers a mechanism for avoiding hasty and ill-conceived decisions in changing
operations. Purchasing medical equipment policy in the hospital is a highlight example. Due to
patient safety, purpose, and expensive price, buying new medical equipment is needed to consider a
lot, and purchasing policy is one of the bases of decision making.
In conclusion, policies aid in strategy implementation by providing a framework, direction, or
guideline for different decision-making in the organization. Policies provided a firm platform for all
strategic decisions and implementation to take place as organizational management keeps their
policies in mind before finalizing any decision referring to strategy implementation.
5. Why are short-term objectives needed when long-term objectives are already available? Give an example? Anwer:
“Planning is essential to achieving both short- and long-term business goals. It helps you align
resources to meet organizational objectives in the most efficient manner possible. Short- and long-
term planning also ensures you reach the highest levels of customer satisfaction.”The long-term
goal often has a long timeline to achieve it. And short-term plans are important elements, helping
the business achieve its long-term goals, by breaking them into smaller pieces/part and complete
step by step. Short-term objectives are the ones that helping business can complete the short-term
goal, from that the long-term ones could be done properly.
Short-term objectives help business has a more clearly plan, and from that business can define
what should be done step by step. Say a long-term objective is the final goal we need to achieve, we
always need to define what is step 1, 2, 3,…. In a specific way, short-term objectives turns goal into
action, with specific guidance about what should be done, who should be in charge, and when is the
time,… That’s why we need a short-term objective. 5
Take the example of Grab when it is new to Viet Nam market, Grab’s big goal is get a big market
shares in Viet Nam’s technical transportation app. Grab needs to implement in smaller steps and it
takes years to get this goal, Grab can get its position right now.
-Grab should divide the big goal into smaller goals and assign for the suitable department:
Branding company, establish a customer service brand, identify what is the unique selling point of Grab? => Marketing
Promotions and Discount, with a lower price (even price is under cost), to get more clients =>
Finance, Business Development and Marketing
Social impacts about what is the benefit of Grab, for example like Grab helps traditional drivers
have a better life,….=> CSR
Develop more functions/ improve the UX/UI on the app to get closer to customers’
satisfaction=> IT and developers
-Next, after breaking into smaller parts, Grab identify the timeline for each of the short-term goal.
And after nearly 2 years of operation in Vietnam with a series of services, such as: GrabTaxi,
GrabBike, GrabCar, GrabExpress was born to serve all the transportation needs of Vietnamese
people. Just in this short-time, Grab has gain a big brand recognization and come closer to gain
bigger market shares in Viet Nam. 6