Marketing paper, DUE April 13, 2018 11.59pm

Strategy… what is it and how does it work? By Art Mollengarden (2009)

Strategy can be thought of as a plan which is followed to achieve a set of goals. The

main focus of this paper discusses the importance of careful implementation of strategy but

before we get there, there are certain elements that must be considered before the strategy is put

in place.

I offer a neighborhood lemonade stand as a good analogy to demonstrate the impact of a

proper alignment of these elements. It is noteworthy to mention that to me, the underlying goal

of the stand is to teach the lessons associated with running a business. I admit, a seven year-old

might not see it from this perspective but a parent can use it as a tool to teach how getting things

right can have a profound impact onaccomplishing one’s goals. By the way, I have a life-long

commitment to stop and buy a cup of over-sweetened lemonade whenever the opportunity

presents itself.

Suppose the stand was placed in the backyard--how would that impact foot traffic? What

if the stand had no sign--would anyone know why some kid was sitting at a table watching cars

passing by.

Oversimplified, sure but it illustrates the importance of getting a properly aligned strategy

in place if the overall plan stands a chance of succeeding.

With very few exceptions, it is safe to assume that every new business is started with the

best of intentions. However, there are mighty odds stacked up against fledgling businesses. In

fact, most businesses fail within their first year of operations. Those that can celebrate their first

anniversary will probably never see an anniversary cake with three candles. And five years, well

let’s say not many make it to the five-year mark.

Ah, what about the businesses that achieve success? What did they do to beat the odds?

They properly aligned the elements that affect their success. Finance, legal, competition,

personnel, marketing, logistics, etc. all need to be in proper balance.

Clearly, these elements change from business to business and the same is true with the

creation of plans and strategies within a corporate setting. Managers must align a vision

(typically from senior management) of what is to be accomplished then formulate a strategy and

develop an implementation plan to execute the strategy. There is much to consider if the vision

has a reasonable chance of success and it is a manager’s responsibility to carefully consider all

the factors which will affect the plan’s success.

Let’s back up a bit, every business has wants and needs. Satisfy some of these needs and

you have a chance of success. Satisfy most of these needs and your odds increase dramatically.

Essentially, a business can be thought of as a living breathing thing and I offer the same

thought as it relates to corporate strategy.

There are many examples of large corporations that started as small entrepreneurial

enterprises. HP in the world of technology, Bank of America in banking, Wal-Mart in retail, and

Calvin Klein in fashion. How did Hewlett and Packard, Gianinni, Walton, and Klein beat the

odds?

There are some who believe that success is based on getting the right people on the bus

(Collins, 2003). Others say it is based on having a great set of goals and plans. I believe it is a

blend of visionaries and implementers. There is little doubt that when Hewlett and Packard were

tinkering in their garage that they envisioned the creation of one of the most innovative

companies in the twentieth century. I know that Calvin Klein and his business partner Barry

Schwartz did not set out to take the fashion world by storm.

But yet, these and countless other businesses succeed. Likewise countless corporate

plans have achieved similar results. To be sure, corporate plans have to contend with factors

which are external to their organization as well as those they can control. A closer look at

global corporations reveal a wide range of considerations that must be factored in to a properly

balance strategy. Cultural, economic, political, and competitive forces are among the items that

a manager must take into account as they formulate their strategy. It is important to note that

Michael Porter’s Five Forces have a significant impact of this formulation. The manager must

consider how existing competitive rivalry, threat of new market entrants, bargaining power of

buyers, power of supplier and, threat of substitute products will impact his strategy.

The nice thing about business and strategy is that we can learn from where we and others

have already been. Accordingly, I suggest that the notion of primary and secondary markets can

be applied to the formulation of strategy as it does to customer demand. Some innovators

develop products that create demand and others can satisfy this demand. An incalculable

number of plans have been devised yet not all succeed to achieve their goals.

Some say a S.W.O.T. analysis can be used to get a handle on a plan’s chance of success

and it widely known that you cannot manage what you cannot measure. This implies that

performance metrics are crucial yet measurement tools change from industry group to industry

group.

Managers can devise strategies that can last hours or years. Suppose a business unit’s

goal is to increase click-through rates on their web site. A manager’s strategy could be to realign

recourses and allocate addition budgets to be used for their search engine optimization. Quick

and easy to do but they must look at a range of factors that impact the proper blend. On a

different scale, let’s suppose Coca Cola wants to introduce a new flavor or dare I say,

reformulate the recipe for original Coke. That could take years and is obviously a lot more risky.

I suggest that at the core of any good strategy and its successful implementation is a great

vision and a team that possesses keen implementation competencies. No strategy will succeed if

it is based on poorly-reasoned vision and vision no matter how great would stand a chance of

winning if it is not put into place by teams that first understand the vision, how it fits into the

overall corporate mission of plan, and has the talent necessary for successful implementation.

Communication is vital. It is not enough for the team to know what they are to do--they

need to know why they are going to engage in the plan. This bigger picture perspective is key.

Teams need to understand and embrace the vision and direction of the vision. Their

implementation success will not be based on their compensation or bonus even if it is directly

related to the plan’s success. Teams want to know they are part of a culture where they can

participate emotionally. Zappos.com is an example of a company that is getting it right. They

do not pay their employees anywhere the top-end of the pay range. They are however, all part of

and participate in the customer experience. They take pride in the service the entire team

delivers to the end user. Tony Heisch’s company is a prime example of enterprise whose

management leads rather than just manages.

In the end, its management’s responsibility to convey the attitude that everyone benefits

when the company is strong—from the person who responds to online inquiries from potential

customers to the truck driver who delivers the goods. Just as important, it applies to the

development, formulation, and implementation of corporate strategies.

The dynamics of commerce are constantly changing and strategy and its thoughtful

implementation is as important today as has ever been. The following well-known saying from

Robert Burns captures the importance of having a well thought-out and carefully considered

strategy, ‘The best-laid schemes o' mice an 'men often go awry’,

(http://www.robertburns.org/works/75.shtml ). To me, this passage does a good job of

summarizing strategy implementation. Planning for the unknown is an offensive measure

because it’s what you don’t see coming that will burn you every time.