Strategy Implementation, Evaluation and Control

Execution is the following measure after placing and holding on the chosen schemes for a concern. This is the portion where most failures happen. Implementation entails every member of an organisation to play an active function in uniting attempts and resources to recognize the concern ‘s common aim. Clear and changeless communicating is cardinal to acquire the whole organisation to back up and transport out the execution procedure. It takes a motivational leader to interpret theories into action programs that will let the schemes to be successfully implemented and sustained.

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Hai-O Group communicates its scheme execution attempt through its corporate slogan “ Turning Challenges into Opportunities ” . It is designed to cultivate the sense of answerability among all cardinal leaders to endeavor to acquire their divisions contribute its best in the execution attempt. Some of the execution undertakings for Hai-O Group include scheme planning, resources allotment, budgeting, and public presentation direction. It requires amazing coaction between all members of the Group throughout the whole organisation from top direction degree to the land.

Hai-O ‘s top leaders realize the action-driven nature of execution procedure and that it requires careful direction of people and concern operations. Therefore Hai-O strives to put the right people at the right undertaking and apportion the right available beginnings at the right action programs. Allotment of available resources besides needs to be handled sagely in conformity to demands of every procedure. Good allotment of available resources will steer the way to efficiency. It is astonishing what a little sum of loss can impact the overall concern net incomes. Optimization of the usage of resources can be done by distributing them in a pool system. This manner more than one division can devour the resources at different times harmonizing to its demands.

The following measure in this chapter is to bring forth action programs for all the schemes analyzed in the old chapter and set them into an execution model. The action plans evaluates the concern ‘s overall scheme from all dimensions in accomplishing its strategic vision, mission and aims.

Implementation Framework and Resource Allocation

Table 16: Action Plans for the Schemes

No

Action Plan

Previous Operation Cost

( in Mil )

Current Operation Cost

( in Mil )

Capital Budget

( in Mil )

Primary Duty

2009

2010

2011

2012

2013

Merchandise Development

1

Include more exciting traditional and herbal merchandises in the MLM merchandise mix

0.1

0.34

2

1

1

Product Development Manager

2

Use the authorities support to develop more TCM merchandises that suited the Bumiputra demographic

5

4

4

Product Development Manager

3

Invest in more R & A ; D activities to make more assortment of traditional and herbal medical specialties

11

10.8

10

5

5

Product Development Manager, Corporate Research Manager, Finance Manager

4

Increase R & A ; D activities to make more high quality merchandises

11

10.8

10

5

5

Product Development Manager

5

Invest in more merchandise development

11

10.8

11

10

9

Product Development Manager, Corporate Research Manager, Finance Manager

6

Include Malaysia ‘s local herb tea and traditional medical specialty into merchandise mix

3

2

1

Product Development Manager, Corporate Research Manager

7

Develop more exciting merchandises that are locally produced

0.1

0.2

1

1

1

Product Development Manager

Market Development

1

Manipulate the same MLM construction to accommodate the local market of other states

5

5

4

Operations & A ; Planning Manager

2

Develop new market in health care industry to rush up enlargement

6

5

4

Corporate Research Manager, Operations & A ; Planning Manager

3

Create runs and motions to advance positive side of traditional health care

3

2.7

4

3

3

Advertising & A ; Publicity Manager

4

Alliance with rivals to make consciousness run for traditional medicine

1

1

1

Corporate Strategy Director, Advertising & A ; Publicity Manager

5

Invest in a batch of publicities and run to make consciousness on TCM

2

7

7

6

5

Finance Manager, Advertising & A ; Publicity Manager

Market Penetration

1

Increase merchandise lines and make more entree to Hai-O merchandises in the market

2

3

5

4

3

Product Development Manager, Operations & A ; Planning Manager

2

Increase promotional attempt to make positive perceptual experiences for Hai-O merchandises

3

2.7

5

5

4

Advertising & A ; Publicity Manager

3

Employ more market research to maintain abreast with consumer penchant

2

3

4

4

3

Corporate Research Manager

4

Put more attempt in publicities to bring forth more promotion

2

7

7

6

5

Advertising & A ; Publicity Manager

5

Improve publicity activities to prolong loyal clients and make word-of-mouth

2

7

7

7

7

Advertising & A ; Publicity Manager

Focus

1

Focus on MLM division

0.1

0.3

2

2

1

GM, Division Manager

2

Focus on local manufactured merchandises

5

5

4

GM, Manufacturing Manager, Product Development Manager

3

Leverage on more service concern ( acupuncture/TCM clinics ) that involve less merchandises

5

4

3

Executive Director, GM, Operations & A ; Planning Manager

4

Concentrate on loyal clients and to guarantee uninterrupted support on Hai-O

3

2

3

2

2

Advertising & A ; Publicity Manager, Operations & A ; Planning Manager

Joint Venture

1

Create partnerships to come in more markets

1

2

3

2

1

CEO, Corporate Strategy Director

2

Share engineering know-how in R & A ; D with China ‘s expertness

3

3

2

1

1

CEO, CTO

3

Create partnership with China ‘s TCM elephantine corporation to derive consumers ‘ trust

1

1

1

1

1

CEO, Corporate Strategy Director

Differentiation

1

Use R & A ; D to develop typical merchandises

11

10.8

10

10

10

CTO, Product Development Manager

2

Create premium merchandise class that is alone in the market

5

4

3

Product Development Manager

Backward Integration

1

Acquire natural stuff beginning ( those in China )

5

4

3

CEO, CFO, Corporate Strategy Director

2

Enter in long term contracts with providers to cut down monetary value fluctuation hazards

0.5

3

2

1

1

CFO, Finance Manager

Horizontal Integration

1

Create partnerships with rivals through OEM contracts

2

2

1

CEO, Corporate Strategy Director

2

Open OEM contract to other conventional pharmaceutical suppliers

0.1

0.2

2

1

1

Corporate Strategy Director, Operations & A ; Planning Manager

Diversification

1

Explore into other extension of health care industry

5

5

4

CEO, Corporate Research Manager

2

Diversify into other possible wellness related service concern ( TCM school )

5

5

4

CEO, Corporate Strategy Director, Corporate Research Manager

Cost Leadership

1

Employ operation cost decrease method in production procedure

3

5

4

3

Finance Manager, Operations & A ; Planning Manager

Price Leadership

1

Use ties with China providers to cut down trade good monetary value and create monetary value war

1

1

2

1

1

CEO, CFO, Corporate Strategy Director

Forward Integration

1

Partner with China ‘s large distribution channel to come in international market

1

1

2

1

1

CEO, Corporate Strategy Director

Retrenchment

1

Discontinue imported merchandises that are non selling good

0.7

1

1

1

Operations & A ; Planning Manager

Strategy Evaluation and Control

The reasoning measure in pull offing schemes is the procedure of rating and control. Evaluation is a procedure of specifying, achieving and showing constructive information for reexamining options to the analyzed action program. In strategic direction, measuring schemes ‘ execution is important sing the fact that schemes are ever subjected to future alteration. Evaluation will help directors to make up one’s mind whether or non the chosen schemes are maneuvering the organisation to accomplish its aims. This is done by reexamining internal and external factors that initiate the schemes, measuring public presentation and taking disciplinary actions.

Evaluation and Control Framework

Below is scheme rating and control model proposed for Hai-O Group:

Specify the scheme to measure

Outline predetermined criterions

Obtain informations to map out onto set criterions

Measure public presentation

Performance lucifer criterion

Stop

Take disciplinary actions

Yes

NO

Figure 6: Evaluation and Control Framework

Specify the scheme to measure

Hai-O ‘s top directors need to stipulate the enforced scheme and the advancement consequences that need to be evaluated. Such consequences have to be objectively mensurable and consistent.

Outline predetermined criterions

Hai-O ‘s top directors need to sketch criterions harmonizing to the chosen implemented scheme. These criterions frequently consist of a tolerance of scope which defines equal fluctuations. They can be predetermined non merely for concluding end product but besides for the intermediary stage of execution procedure.

Obtain informations to map out onto set criterions

Datas to obtain consists of consequences from the actions taken on the chosen schemes. These informations are so mapped out onto the criterions that are set on the 2nd phase.

Measure public presentation

Following is to measure the public presentation of the mapped out informations. Hai-O ‘s top directors should analyse the study from this phase to do the necessary determinations.

Performance lucifer criterions

If the public presentation of the identified scheme achieves the criterions within the tolerance scope, the procedure stops here.

Take disciplinary actions

If the public presentation measured does non accomplish the criterions, Hai-O ‘s top directors should take necessary actions to decide and amend the execution procedure. Often, hapless execution consequences derived from hapless communications among the squad and lacking of committedness across the organisation. Incorrect allotment of resources could besides be a ground. Thus it is important for squad leaders to detect execution at all clip.

Key Issues and Challenges

From the action plans we can analyse that some schemes are already being implemented by the Group. A important sum of budget allotment has been dispensed towards the executing of these schemes. As some of it may hold bestowed good consequences, some still need a batch of positioning work and thorough observation. There can be a batch of grounds for a scheme non being able to bring forth expected consequences. Such grounds may non necessary be internal. A batch of the clip external factors can besides be the cause.

For Hai-O Enterprise Berhad, being in the industry for over 35 old ages have brought the Group on a journey full of learning and larning experience. A batch of schemes have been carved and a batch of challenges have been weathered. It is merely common to hold that non all schemes are feasible. Hai-O has ever strived to see the practicality of a scheme no affair how flawless and ideal it appeared on paper. There are a batch of points to see before an ideal scheme can be implemented. For illustration a scheme to spread out abroad should ever see the political deductions. Particularly in Hai-O ‘s instance, there are many states that are yet to hold their national policies for trading of traditional medical specialty merchandises. This is because of the fluctuations of definition and classifications of TM make modulating procedure complicated. A individual herbal merchandise could be classified as different classs in different state. Therefore, such disparity in ordinances at the national degree will hold an impact on Hai-O ‘s international entree and distribution of merchandises.

Having said that, it is important to sum up that Hai-O needs to go on to see some key issues and challenges that will ever come up in its concern schemes. The top direction of the Group has ever been argus-eyed on these cardinal factors. Some of the factors that are taken into consideration by Hai-O ‘s top direction in its concern schemes are:

Culture

Hai-O believes that every organisation possesses its ain civilization, a construction of shared beliefs and values ( Wilson, 2001 ) . The corporate civilization forms and is shaped by the quality of its internal environment. This quality determines the extent of cooperation within an organisation which dictates the motive of employees to accept a important alteration within the corporation ‘s system. Riding on this values

Hai-O will non use such schemes that do non accommodate the corporate civilization although it does accommodate the concern aims. Thus some of ideal schemes for its concern growing have to be channelled to their following best options.

As a strong truster in civilization, Hai-O is careful on its schemes that include integratings. Though they may look important and promising, a batch of the clip world proves it is harder to draw off. In its early old ages, Hai-O has faced failure in joint ventures in China, even sing the fact that it has built up strong ties with Chinese functionaries. A major failure took topographic point when the puting up of Malaysia-China Commerce Centre in Menara UE3, Kuala Lumpur in the 1990s. This proves that different civilizations carry different set of heads, therefore different deepness of strategic thought. Therefore civilization is one of cardinal factors of Hai-O ‘s concern scheme.

Time

Time significantly plays an of import function in schemes execution and is in fact a strong standard in the phase of taking schemes. A batch of top leaders undervalue the sum of clip needed and they do non hold a clear apprehension of the complexnesss concerned during the execution of schemes. Hai-O is ever argus-eyed in the clip frame involved in its concern schemes. As the old concern stating goes, ‘time is money ‘ , Hai-O ‘s top direction is non interested in schemes that consume an extended period of clip although it does assure appealing returns. Hai-O demands to see the time-intense actions and complement them with the clip capacity of its concern. Therefore, the Group has had to set on keep some strategic moves in order to give manner to the procedure of crafting alternate solutions to retroflex them.

Finance

It goes without stating that a strategic planning system is non able to make its full potency until it is incorporated with other control systems like budgets. Like any other corporations, Hai-O ‘s concern schemes are subjected to fiscal restraints. Although the Group has been able to prolong its overall net incomes growing each twelvemonth, the Group ‘s corporate direction is non acute to put on the line the concern into irrational investing of an action program. Hai-O concern involves with a batch of merchandise development. It requires a batch of R & A ; D schemes that are for most companies, merely strategic on documents and financially far off from range. Fortunately, Hai-O has been able to put on a figure of expensive schemes affecting R & A ; D. However the Group agreed that such investing is merely strategic seasonably.

Business Environment

As discussed in earlier chapters, Hai-O ‘s concern is strongly influenced by the external factors. The four dimensions of external factors, political, environmental, societal and engineering truly guard the health care industry. Although it is considered as a defensive industry where economic conditions barely overpower wellness, determining schemes that out win the market conditions is disputing. Because of limitations surface from the external environment, equals in the industry will vie within the same force forcing companies to contend sharply. This puts force per unit areas on Hai-O and requires the Group to endeavor harder in order to stand out in footings of concern scheme. It is merely fortunate that the Group involves in TCM concern where traditional medical specialty industry is acquiring more attending from the biggest force, the authorities. Therefore the load for its publicity scheme is already considered being lifted off as the difficult work to publicized traditional medical specialty are being shared with the authorities. However the stronger force that dictates the length of service of a market is still the consumers. Hai-O ‘s concern scheme will ever be correlated to the altering life style and penchant of the consumers. While a batch of the clip altering schemes can be dearly-won and clip consuming, but it is the merely right manner to travel approximately in managing the external factors in concern scheme particularly when the concern ‘s chief precedence is carry throughing clients ‘ satisfaction.

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