During strategy implementation, managers primarily focus on deciding the
A. industries and markets the firm should compete in to be able to gain and sustain a competitive advantage.
B. type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice.
C. relationship between competitive advantage and firm performance.
D. role strategic leaders should play in gaining and sustaining a competitive advantage.
The Correct Answer and Explanation is:
The correct answer is:
B. type of corporate governance that is most effective and ways in which it can put the formulated strategy into practice.
Explanation:
Strategy implementation is the phase in the strategic management process where plans and strategies developed during formulation are put into action. This stage is crucial because even the best-formulated strategy can fail if not implemented properly. While strategy formulation focuses on “what” the strategy should be, strategy implementation is about “how” to make the strategy work in real-world operations.
During implementation, managers primarily focus on the organizational structure, resource allocation, processes, and governance mechanisms that will support the execution of the strategy. Corporate governance becomes essential here because it provides a framework that outlines the rules, practices, and processes by which a firm is directed and controlled. Effective governance ensures that all levels of management and employees are aligned with the company’s strategic goals.
For example, managers must decide how to allocate resources such as capital, human talent, and technology to different departments or business units. They also determine reporting relationships, performance metrics, and incentive systems. If these systems are not in place or misaligned, the strategy cannot be implemented effectively.
Moreover, leadership plays a key role in ensuring that the strategy is communicated clearly throughout the organization and that there is accountability at each level. Change management, organizational culture, and employee engagement also become focal points during this stage.
While options A, C, and D relate to important aspects of strategy formulation or strategic leadership, they are not the primary concerns during strategy implementation. Therefore, option B is the most accurate choice, as it captures the essence of putting strategy into practice through effective corporate governance and operational alignment.