Strategy Implementation and Strategic Controls:
1) What is your opinion on SYLVESTER'S ANSWER to the QUESTION below?
SYLVESTER'S ANSWER
Strategy implementation controls are a determinant in the success or failure of an implemented plan (Alkhafaji, 2003). For General Mills, the use of strategic control systems and the organization's people ensure the success of policy choices. General Mills is renowned for breakthrough food technology.
These innovations have also been used in connecting the group with their customers, investors, and for administrative purposes. Further, acknowledging their heavy reliance on people, General Mills have developed articulate motivation strategies to ensure their employees always remain focused and work towards the goals of their company.
They have established benefits and recognitions criteria through which best performing individuals are recognized and awarded for their efforts. These welfares and rewards keep their employees positively motivated.
Reference
Alkhafaji, A. F. (2003). Strategic management: formulation, implementation, and control in a dynamic environment. New York: Haworth Press.
QUESTION:
In order to properly implement a strategic plan, organizations use structure, various control systems (budgets, variance analysis, policies and procedures, company rules), and culture.
Let us revisit General Mills and determine the relative effectiveness of the company's strategic controls. Choose two implementation controls, and discuss whether or not you believe the controls you've selected effectively support the company's strategic choices. Be sure to defend your answer (critical thinking is required)!
2) What is your opinion on RYAN'S ANSWER to the QUESTIONS above?
RYAN'S ANSWER
One of the strategic control's that General Mills utilizes is a "holistic Margin Management" approach. This involves General Mills looking at efficiencies in terms of what works to better create value for their brand. Once all the efficiencies are highlighted, the company then works to discard anything that is deemed as waste in terms of cost and operation activities. This control has been effective because it has helped the company to save close to $1.3 Billion through 2013. The company is also currently on track to save another $4 Billion (Christensen, 2014).
A second strategic control that General Mills uses is segment growth analysis. This is done by analyzing the growth, or lack thereof, of each different segment line that the company has inventory in. This includes looking at all operations, even including those outside of the United States. The Company looks at which segments are doing well, and which one are not growing; and if a segment is not growing the company looks to see what can be attributing to a slow growth (Reynolds, 2008). If there are certain product that are not doing well within certain segments, the company will then revisit those products to see if they either need to have a new marketing strategy for that product, or just discontinue it all together. This control is also effective because it has helped the company to increase their revenues year after year.
Christensen, B. (2014). Holistic margin management. A Taste of General Mills. Retrieved from
https://blog.generalmills.com/2014/05/holistic-margin-management/
Reynolds, R. (2008). General Mills. University of Oregon Investment Group. Retrieved August 16, 2015, from
https://uoinvestmentgroup.org/wp-content/uploads/2009/08/General-Mills-GIS.pdf