Question

a. Organization continuously face high degree of uncertainty within their external environment. For this reason strategy formulation had become a key for organizations to maneuver within the macro and micro environments. However ,a successful strategic formulation,as a procurement officer and with your understanding in strategic supply chain management, recommend to a known organisation for your choice how to successfully implement strategies

b. Explain the importance of establishing annual objectives with the known company of your choice

Answer 1

The strengths and weaknesses of the organization

The organization also has to look internally and look into itself. In particular, it has to identify its strengths and acknowledge its weaknesses. By doing so, defining a competitive strategy will be easier.

Again, specificity is important when coming up with competitive strategies. Let us take a look at some competitive strategy examples:

• Produce at low cost and sell at a low price, but at high volume
• Pursue a market niche strategy

In New Leaf Paper’s case, its competitive strategy involved “serving the market through leading product innovation, while ensuring that each product line and business relationship is deeply entrenched with New Leaf Paper’s environmental and social values.”

(Technically, this is where Strategy Formulation ends, and we move on to the next stage in the Strategic Management Process. However, in order to further emphasize the crucial role played by Strategy Formulation, let us continue on to the succeeding steps in the process.

On the other hand, considering how strategy formulation is also done throughout the strategic management process, it won’t be entirely wrong to say that the next two steps may also fall under Strategy Formulation. After all, management may discover new information or circumstances that will result to formulation of new and improved strategies.)

5. Implementation of strategies

Organizations may have come up with very good strategies, but they will be completely wasted and will benefit no one unless they are implemented.

Identify the tactics or methods that will be used in the implementation of the chosen strategies. As the implementation moves forward, management may spot some methods or tactics that are not working, or they may realize that another tactic may work better. In that case, the corresponding adjustments may be made.

At this point, it is possible that the company was able to come up with several strategies. However, as much as they’d want to implement all these strategies, that is not just possible. Review of the strategies will help the strategic management team to prioritize the strategies and identify which ones to implement.

This time, let us take a look at some tactics, methods or steps undertaken by New Leaf Paper. Keep in mind that the competitive strategy is to introduce product innovations and putting emphasis on environment and social values.

• Development of innovative products. New Leaf Product was the first to develop, manufacture, and sell innovative and ground-breaking paper products, and some of the most notable ones are:
  • “New Leaf Reincarnation, the first 100% recycled coated paper (1998)
  • “New Leaf Ecobook 100”, the first trade book paper, made with post-consumer waste (PCW) content and PCF (2001)
  • “New Leaf Opaque 100”, the first white opaque paper made with 100 PCW and PCF (2003)
  • “New Leaf Primavera”, the first high-end gloss coated paper with 40% PCW and PCF (2004)
  • “New Leaf Sakura”, the first silk-coated paper in the US (2006)
• Certification as a Certified B corporation. New Leaf Paper is one of the first 81 companies named as a Certified B Corporation, known for using “the power of business to solve social and environmental problems”.
• Obtaining environmental certifications. In 1999, New Leaf Paper produced the “New Leaf Ecomatte”, which was the first coated paper to be granted a certification by the Forest Stewardship Council (FSC). Other environmental certifications earned were from Biogas Energy, Green-e Certified Renewable Energy, and Ancient Forest Friendly.
• Tie-ups with major companies and undertakings, one of the most notable ones being when “New Leaf Paper Ecobook 100” was used to print 950,000 copies of J.K. Rowling’s “Harry Potter and the Order of the Phoenix” in 2003.
• Leveraging partnerships. New Leaf Paper partnered with Bank of America and developed the “New Leaf Everest”, the first bright white letterhead paper in the world, made with 100 PCW and PCF.

6. Evaluate progress and effectiveness

It is important to track the progress of the implementation of the strategies. Are they being properly implemented? Are they being measured properly? Are the safeguards to ensure reliability of the results in place?

On top of that, the effectiveness of the strategy implemented should also be assessed. Is the strategy working? Does it have the potential to bring the company closer to the fulfillment of its goals, as laid out in the Mission Statement?

When we look at the example of New Leaf Paper, its strategies resulted in other paper companies launching their own lines of environmentally responsible paper products that are very similar with New Leaf products. For example, the success of “New Leaf Everest” spurred five competing paper companies to launch their own brands. Clearly, this is an indication that the company is making strides in its vision of inspiring – through their success – that fundamental shift toward sustainability in the paper industry.

Feedback plays a very important role in the evaluation stage, providing the strategists with insights on how the implemented strategies are faring.

It takes a lot of smarts, determination and hard work to make a business succeed, beat the competitors, and have the upper hand in the competitive arena within the marketplace. A great part of this rides on the strategies and how they are implemented, but never forget that it all starts with the strategy. In order to have an effective strategy, make sure that they are in line with the overall organizational goals.

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