Running head: DECISIONS IN PARADISE BUSINESS SCENARIO

Decisions in Paradise Business Scenario An Assignment Submitted by Name of Student Name of Establishment Class XXXX, Section XXXX, Fall 2012

DECISIONS IN PARADISE BUSINESS SCENARIO Decisions in Paradise Business Scenario Though some management theorists have high expectations for business planning, the implementation of the strategy is the same important and often more complicated (Hrebiniak, 2006). The variety of inner and outer factors influences the extent, to which organizational strategic plan is realized. According to some assessments, the actual implementation of the strategic plan reported by the companies managers is 50% from the planned implementation; while the actual realization of the plan assessed by the outside observers reaches only 10% from the total amount of the planned strategic actions (Kotelnikov, 2012). In most organizations, the efficient implementation of the business strategy is obstructed by the following factors: the mindset of senior executors (Kotelnikov, 2012), poor corporate atmosphere, resistance to changes, lack of motivation, and inability to adapt to outer changes. Transferring this information to the realities of the company under study, the following actions aimed to reduce the negative effect of the mentioned factors can be proposed: 1. The mindset of the Companys executors can be a significant obstacle to the implementation of the new strategic plan. The proposed changes can be implemented through the evolution of the established ideas of doing business. The Company has already declared its readiness to changes when having recourse to Nik a foreign specialist; and this positive trend can be consolidated through the introduction of continued experience interchange with the specialists from other countries. The introduction of online seminars or round tables can become the full-fledged alternative to the costly international travels of the Companys management.

DECISIONS IN PARADISE BUSINESS SCENARIO 2. Poor corporative atmosphere often results in the companys decreased performance, as a strong team of employees is an important prerequisite for the Companys development, response to changes, and innovation. The improvement of the team-climate within the Company is accessed through the choice of an efficient leader able to convey the strategic idea to his subordinates, as well as the encouragement of each employees initiative and display of team-playing skills. 3. Though changes are important for an organizations development and innovation, most companies prefer to avoid them and try to maintain the status quo (Kotelnikov, 2012). Obviously, the best way to decrease the Companys resistance to changes is to involve its employees in the process, so they can understand their necessity and benefits. For example, Nik can explain that the Companys active participation in the life of the region influences the economy, the development of its infrastructure, and welfare. Thus, the high standards of each individuals life are in direct relationship with the Companys performance. 4. The lack of the personnels motivation often results in the decreased performance of the organization. Nik is recommended to stimulate his subordinates utilizing monetary and non-monetary rewards. The increased salaries and bonuses play significant role at the initial stage of the plans implementation, while non-monetary ones, including promotion or enabling an employee to choose the activity to perform, are important when the plan is under development. 5. Since the Company is operating in constantly changing environment (including climatic, political, and other challenges), it is important to decrease the personnels resistance to changes the significant prerequisites for the Companys innovation and

DECISIONS IN PARADISE BUSINESS SCENARIO competitive advantage. The Companys response to inner and outer changes is recommended to be accessed through the continued improvement of the team climate, professional advance of each particular employee, and introduction of efficient cooperation with other companies operating in the region. It is obvious that the deliberate response to the factors influencing the implementation of the Companys strategic plan implies the assessment of its resources. The further development of the Company is associated with the full use of monetary and human resources. The government financing is the primary monetary source of the Companys development, the utilization of which is possible through the introduction of the plan corresponding to the strategic vision of the region. Human resources also play significant role in the implementation of the Companys strategic plan as it is the factor in making strategies happen (Birnbaum, 2009). The deliberate application of human resources implies, firstly, the introduction of satisfactory compensation package and, secondly, the continued improvement of the Companys team-climate. The ideas to the achievement of both goals were reviewed below. So, the efficient process of spreading the Companys business influence in the region is supposed to include the following six steps: 1. Introduction of the Companys strategic plan; 2. introduction of organization structure corresponding to the strategic goal; 3. development of the Companys human resources; 4. presentation of the annual business plan as an important step towards the control of the strategic actions; 5. Monitoring and control; 6. linkage of the planned actions into one integrated system (from Birnbaum, 2009). It is evident that the implementation of the Companys strategic

DECISIONS IN PARADISE BUSINESS SCENARIO plan should correspond to the earlier presented Code of ethics - fair balance between capital and work (ICA, 2012). References Birnbaum, B. (2009). Strategy Implementation: Six Supporting Factors. Retrieved from: http://www.birnbaumassociates.com/strategy-implementation.htm Hrebiniak, L. (2006). Obstacles to effective strategy implementation. Organizational Dynamics. No 35, 12-31 ICA. Code of Ethics for Companies. Retrieved from: http://www.ecgi.org/codes/documen ts/ica_coe_en.pdf (September 6, 2012) Kotelnikov, V. Impediments to Strategy Implementation. Retrieved from:

http://www.1000ventures.com/business_guide/strategy_implementation_impediments.ht ml (September 6, 2012)

DECISIONS IN PARADISE BUSINESS SCENARIO