1- What is the significance of annual objectives in strategy implementation?

• Annual objectives serve as guidelines for action, directing and channeling efforts and activities of an organization’s members

• Major instrument for monitoring progress towards achieving long term objectives

• Serve as standards of performance

• Primary tool for evaluating employees

• Serve as a source of employee motivation and identification

• Provide a basis for organization design

• Represent basis for allocating resources

• Establish priorities at all levels

2- Functional tactics play an important role in implementation of strategy. Explain.

Simple and least expensive

Groups tasks by business function – Production/Operations, Mktg, Finance etc.

Promotes specialization of labor, efficiency, minimizes need for elaborate control system and

allows rapid decision making

Disadvantages: Forces decisions to top, conflict management, poor delegation, inadequate

cross-functional planning, low morale

Suitable for small organizations

3- Organizational leadership is essential to effective strategy implementation. Discuss.