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Strategic Implementation and Strategic Choice

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In order to implement a strategic choice, organizations use structures, control systems, HR policies, and culture.

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1. Analyze how the company implements the strategy (or strategies) the company currently pursues.

2. Choose one implementation tactic and identify whether it concerns organizational structure, controls (e.g., budgetary control systems), HR, or organizational culture.

3. Finally, discuss whether or not you believe the tactic you've selected effectively supports the company's strategy at the proper level.

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Solution Summary

This solution provides a discussion of how an online store (overstock,com) uses implementation tactics in order to accomplish its organizational strategies.

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Strategic Implementation

Strategic choices made by organizations are those which are designed to affect and even direct the business on a long term

basis. Choices are called strategies when they affect the company for more than five years. For instance, when Sears,

Roebuck Inc used the catalog format to advertise its line of furniture and clothing, for many years this was the main

method that customers used to purchase items from the company.

Implementation tactics are actions taken by an organization in order to carry out the strategic choices that it makes.

This is a discussion of how the company Overstock.com implements its current strategy or strategies, and whether a

selected implementation tactic concerns organizational culture, controls, human resources, or organizational culture.

Implementation tactics can concern many components of an organization, among them being the following:

Organizational structure refers to the sum total of the ways in which an organization divides its labor into distinct

tasks and then coordinates among them. Formal organization is depicted by an organizational chart, which indicates lines

of responsibility and accountability among the individuals in the organization. (BJ Hodge et al, 1996, pp 21-33)

Controls (such as budgetary control systems) are the methods used by an organization to maximize its effectiveness and

efficiency. Two economic approaches, or theories, used by organizations can demonstrate the ways in which several

mechanisms are used to maintain control: 1)the agency theory, which sees the organization as a series of contractual

relationships between owners and workers or 2)the transaction cost theory, which views the organization ...

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