The two best signs of good strategy execution are whether: the company is challenging its current performance targets and whether value chain activities are fully integrated within the strategic response criteria. managers are personally leading the change process and whether they are meeting deadlines set for budgetary requirements. the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence. managers are fully behind the changes and whether the company’s value chain managers are executing them diligently. the company identifies what the organization must do and how to make the necessary internal changes.
The Correct Answer and Explanation is:
The correct answer is:
The company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence.
Explanation:
Effective strategy execution is essential to achieving long-term business success, and two of the most telling signs that a company is executing its strategy well are its ability to meet or exceed its performance targets and how well it integrates its value chain activities.
- Meeting or Beating Performance Targets:
One of the most direct indicators of successful strategy execution is whether the company is achieving its key performance targets. These targets, such as revenue growth, profitability, market share, and customer satisfaction, are often set as part of the company’s strategic plan. When a company consistently meets or exceeds these targets, it shows that the strategic plan is being effectively implemented, and the company is on the right track toward achieving its objectives. - Performing Value Chain Activities for Operating Excellence:
The value chain refers to the series of activities that a company performs to deliver a product or service to the market, including inbound logistics, operations, marketing, sales, and after-sales service. For a company to achieve operating excellence, its value chain activities must be aligned with the strategic objectives. This means that each department or unit must work seamlessly to optimize efficiency, reduce costs, and enhance the customer experience. When value chain activities are fully integrated and well-executed, it improves the overall effectiveness of the company’s strategy and contributes to competitive advantage.
These two signs—meeting performance targets and performing value chain activities with excellence—ensure that the company not only has a well-crafted strategy but also executes it effectively across all levels of operation.
