Supply Chain Dynamics and Strategic Analysis

This assignment delves into the complex world of supply chain management, focusing on the dynamic nature of these systems and the need for strategic analysis to ensure effective performance even in uncertain environments. It draws upon research papers examining topics such as market intelligence, cloud computing adoption, chief strategy officers' roles, and organizational alignment for sustainability. The goal is to understand how organizations can adapt and optimize their supply chains for success in today's volatile marketplace.

Running head: STRATEGIC EXECUTION AND IMPLEMENTATION
Strategic Execution and Implementation
Name of the Student
Name of the University
Author’s Note

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STRATEGIC EXECUTION AND IMPLEMENTATION
Executive Summary
This particular study has focused to provide a deep insight on how VTB has expanded their
business process by executing innovative strategic plan. VTB Russia is one of the most
recognizable global financial service providers occupying a dominant place in the banking
industry. In quest of business expansion in various CIS countries like Armenia, Ukraine, Belarus,
Kazakhstan, Azerbaijan, Austria and Germany, VTB has implemented different management
styles and organizational structure. The responsibility of business experts is to maintain business
sustainability in the market.
While providing effective services in the market of Russia, VIB has analyzed on how they can
continue and maintain the standard of products and quality of services. The study has focused to
highlight some of the major issues that VTB is facing right now while executing business plans
and policies. Based on the issues identified within the study, some of the major recommendations
have also been provided for rendering an effective change within the services in order to reach
the peak of business success.

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Table of Contents
1. Current strategy in terms of organizations’ mission:...................................................................3
2. Obstacles of strategic execution:.................................................................................................5
3. Process of translating strategy into action:..................................................................................6
4. Strategic risk management and development of strategic performance management.................8
5. Designs and systems of organizations aligned with the strategies............................................11
6. Management style:.....................................................................................................................12
8. Recommendations:....................................................................................................................13
Reference List:...............................................................................................................................15

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1. Current strategy in terms of organizations’ mission:
VTB Russia is one of the most recognizable global financial service providers occupying
a dominant place in the banking industry. The business experts of VTB Russia have expanded
their wings all over the CIS countries such as Armenia, Ukraine, Belarus, Kazakhstan,
Azerbaijan, Austria and Germany. People of various geographical backgrounds are aware of the
service process of VTB Russia. The most effective shareholder of VTB Bank is Russian
Government, which owns 60.9% of voting shares (Vtb.com 2018). The primary mission of this
specific company is to deliver effective services by maintaining superior quality of their
products. The current strategy that VTB Russia tends to follow is 5Cs strategy for executing the
entire process of business successfully. Fine Cs strategy includes:
 Causality:
Every business organization has to face innumerable barriers in executing a strategic plan
properly. VTB especially intends to face a gap between plan and action. Causal logic primarily
aims to align projects with strategic objectives ‘bottom-up’ – not every legitimate activity
emerges from ‘top-down’ planning.
 Criticality:
Business organization like VTB has to implement innumerable strategies within the
business process (Srivastava and Sushil 2013). As a result, the business managers have to face
difficulties in executing every single business strategy effectively. This very specific stage is
helpful to critically analyze the pros and cons of various business plans for reducing complexity.
 Compatibility:

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After implementing a proper strategic plan VTB managers intend to make an effective
evaluation whether the organizational structure is compatible enough in making these plans and
policies successful (Goetsch and Davis 2014). VTB as a financial service provider has decided to
engross the market of Austria and Germany. The business managers have analyzed that this
organization has sufficient number of workforce strength in order to maintain a balance between
supply and demand.
 Continuity:
The responsibility of business experts is to maintain business sustainability in the market.
While providing effective services in the market of Russia, VIB has analyzed on how they can
continue and maintain the standard of products and quality of services. This particular business
strategy enabled VTB to appoint research and development team within services (Parisi 2013).
The role of this specific department is to analyze the risk factors of implemented business plan.
 Clarity:
Maintaining clarity within the services is one of the most significant strategies and
policies that VTB tends to follow. Russian government is the primary shareholder of this specific
organization (Jamil 2013). Therefore, the service providers always intend to maintain a
transparent and effective customer relation with the clients.
The various sectors with which VTB tends to deal are as follows:

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Figure: VTB structure
(Source: Vtb.com 2018)
2. Obstacles of strategic execution:
It is undeniable that VTB has faced innumerable challenges while executing the strategies
within business services due to several reasons. Followings are the primary obstacles that this
organization has faced while executing the plan:
 Lack of workforce strength in comparison to the number of customers
 Clients are based on public sector mainly. Private organizations are not interested in using
the services of VTB
 Communication gap between the service providers and service users
 Customers’ point of view states that VTB has low profit growth

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Lack of workforce strength Communication gapLess number of clients from pvt sector employee
Low profit Growth
Figure 2: Obstacles of strategic execution
(Source: Cadez and Guilding 2012)
3. Process of translating strategy into action:
After identifying the obstacles for executing the strategic planning successfully, VTB has
decided to focus on several aspects. Based on those components VTB would be able to translate
their strategy from idea to action.
 Enterprise Resource Planning:
Enterprise Resource Planning primarily aims to integrate the back office business process
by facilitating the flow of information within organization. ERP software enables to collect
organizational data from different level of an organization by connecting business activities
across the department (Hollenbeck and Jamieson 2015). After using this specific process, VTB is
able to give services with the help of composed data. As a result, employees are able to maintain

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integrated workflow. The organization does not have to dependent on the employee strength. As
a result, implemented strategies can be made successfully.
 Total Quality management:
Total quality management is the process based on which organization tends to focus on
improving products and services. This specific approach is based on 8 principles that enable the
business providers in improving entire process of business (Uittenhove and Lemaire 2012). The
8 primary factors based on which service providers of VTB has focused to improve their quality
of services are as follows:
 Focus on satisfying customers
 Total employee involvement
 Strategic and systematic approach
 Continual improvement as per customers feedback
 Strategic decision making
 Maintain focus communication
 Business Process Reengineering:
Business Process Reengineering is one of the most effective business strategies based on
which the organization can focus on customer service, cut operational cost and World-class
competitors. One specific issue has been identified that VTB is not efficient enough in involving
the employees within services properly (Malladi and Krishnan 2012). The organization has not
appointed large number of employees within the services so that customers can get the entire
services within proper time. In this kind of situation, Business Process Reengineering has been
implemented within the process of business. This specific form of strategy has enabled VTB to

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implement ERP planning with the help of which employees can work together with composed
data and information.
 Six Sigma:
Six Sigma in general view, is a form of data driven approach in quest of eliminating
defects from the entire operation process. In this very specific study, some of the major issues
faced by VTB have already been highlighted. Employees are not providing effective services to
the customers due to the lack of strength. In addition, employees are not comfortable enough in
being accustomed with the advancement of technology (Sharma, Vlosky and Romagnoli 2013).
However, the business experts in this situation have implemented Six Sigma method. With the
help this specific method, VTB has been instructed to focus on several factors such as total
employee involvement, strategic decision making, effective customer services and working with
composed data.
ERP, Total quality management, Business Process Reengineering and Six Sigma are
the several ways based on which strategic ideas of VTB can be translated into action. People
belonging to various geographical boundaries and attitudes are associated within the services of
VTB. Therefore, the business managers should focus on providing effective career progression
planning. As a result, they would be able to maintain balance between customers demands and
supply.
4. Strategic risk management and development of strategic performance management
Risk management is the systematic method of evaluating the risk factors on the
implemented strategies. As a result, the organization does not have to face any kind of barriers in
running the business process. While evaluating the current strategy of VTB it has been pointed

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out that, the organization has faced numerous challenges. Services providers are unable to
communicate with the clients properly due to language barrier (Teller, Kotzab and Grant 2012).
VTB has become very much dependent on government. Most of the private organizations have
showed their reluctances in receiving financial services from VTB due to poor services from the
employees.
After identifying risk factors, some of the most effective development strategy has been
implemented within the business process of VTB. The development strategy includes:
 Development of product for satisfying customers:
VTB has decided to render product development in order to expand their business in
different multinational countries. Investment banking and wholesale banking was the core
product with which VTB generally dealt (Levenson 2015). However, the business experts have
decided to bring general insurance, health insurances, life banking and retail banking in quest of
increasing the rate of target customers. After the initiative of retail banking, large number of
private sectors would like to show their interest in receiving the services of VTB.
 Rendering a change on corporate culture:
As per the corporate culture in Russian banking industry, group performance never gets
priority than individual performance. Business managers always crave for getting good
performances from individual. Srivastava (2014) opined that in order to meet long-term business
target business employees have to focus on improving group performance. Every individual team
would have to perform well for grabbing customers’ attention.
 Advanced technology:

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While using ERP planning and other financial software employees should be efficient
with the changing process of technology. Otherwise, the organization would not be able to
deliver the services within proper time (Sabt, Achemlal and Bouabdallah 2015). After the
emergence of technology, VTB gets more opportunities to promote their entire services in
various geographical boundaries. As a result, people of global market are aware of the services
of VTB.
 Effective financial performance:
VTB aims to provide the best financial services to the customers. It provides obvious
stakeholder meaning for transformation, but brings potential conflict between cost optimization
and major transformation spending on operational level. While providing financial services the
employees would have to show their professional gesture (Villeneuve and Bennett 2012). Based
on this professional gesture customers of various cultural and psychological backgrounds and
attitudes would get equal respect and priority.
 Proper structure of the organization:
VTB while developing the strategies should focus on maintaining proper organizational
structure and hierarchy. Function, products and services, Market segmentation and matrix are the
four major components based on which VTB should improve their internal structure. Function is
the primary hierarchy that VTB tends to follow. The primary function of this specific
organization is to provide clear instruction to the manager in order to control the entire process of
business (Ivanov and Sokolov 2013). In order to gain organizational image and reputation
business experts have to focus on maintaining quality of products and services. VTB primarily
deals with Investment banking and wholesale banking. However, the product managers of this

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organization has decided to implement general insurance, health insurances, life banking and
retail banking for increasing more customers within the service process.
5. Designs and systems of organizations aligned with the strategies
Every business organization has to follow a proper design and system that can be aligned
with their strategies and policies. The elements, which are sorted out for designing the system,
are as follows:
 Organizational process:
In quest of maintaining business sustainability, the organization follows a proper process
regulations and acts. The regulations that VTB has implemented within the business process
include health and safety act, right to information act, data protection act, anti-discrimination act
and so on. On the other hand, VTB is very much flexible in providing equal priority and
response to every single customer (Unger, Gemünden and Aubry 2012). In addition, employees
after facing any kind of health issue at the workplace can get a proper assistance from the
business experts.
 Interface management:
Interface management primarily signifies the overall hierarchy that a specific business
organization maintains in order to control the overall process of business. Operation manager
plays the primary role within the work floor of VTB. Large number of assistant managers works
in several departments under operation manager (Castronovo and Huang 2012). Managers tend
to direct the team leaders in performing well so that employees working under that team leader
get the motivation of effective performances.

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 Capacity of the organization:
In order to maintain proper organizational hierarchy business experts should have
sufficient financial resources. As a result, the organization would be able to improve their
performances. After evaluating the entire organizational capacity, it is critically analyzed that
VTB is not sufficient in providing effective training and development session to the employees
due to economic constraints (Men and Scheef 2014). Employees do not get much exposure in
improving their professional skill and company. However, in order to render development
strategy the organization needs to focus on employee performance evaluation so that customers
can get better services.
6. Management style:
Democratic management style is the way of success that VTB tends to believe for
expanding their business. VTB with the help of democratic form of leadership style never
intends to impose own decision on the employees. Employees have the right to express their
point of regarding the success of business (Castronovo and Huang 2012). As a result, the
employer and employees can maintain an effective rapport with each other on the work floor.
After following this particular management style, the business managers have identified the areas
of both success and failure. The positive and negative impact has been pointed out below:
Positive effects:
 Employee engagement
 Effective delivery of services
 Effective strategic plan to render the success of business
 Collective decision making

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STRATEGIC EXECUTION AND IMPLEMENTATION Transparency within the services
Negative effects:
 Misuse the flexile work environment
 Incoherence on the work
 Ineffective delivery of services
 Biasness towards evaluating the level of performances
7. Evaluation of good and weak practices:
After analyzing the entire organizational structure along with the management policy, it
can be evaluated that VTB likes to follow democratic form of management style while regulating
the entire process of business. Democratic form of leadership style implies that employees and
employees are flexible in making organizational policies with the help of collective decision-
making (Ivanov and Sokolov 2013). In this kind of situation, employees do not have to focus
enough difficulties in providing their good services to the customers. On the other hand, it has
also been observed that extreme level of employee engagement is hampering the workflow of
VTB. The employees are from different geographical backgrounds and attitudes. As a result,
business managers have faced innumerable challenges in receiving effective decision from the
employees.
8. Recommendations:
After evaluating the entire strategic execution plan of VTB some of the major
recommendations can be provided:

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 Managers should focus on developing the professional skills of employees. After the
business expansion of VTB in Germany and Austria, business experts have faced immense
difficulties in fulfilling the needs and demands of the customers due to communication gap
and psychological barrier (Villeneuve and Bennett 2012). However, it can be recommend
that the human resource managers should provide an effective training and career
development session to the employees based on which the employees can improve their
performances.
 Democratic form of management style is not suitable for VTB in any circumstance. This
particular organization being one of the most recognizable financial service providers of
Russia should follow transformational form of management style (Levenson 2015). In order
to overcome any kind of sudden crisis the managers should implement autocratic decision on
the business process. As a result, they would be able to overcome the crisis as soon as
possible. Involving the employees for gathering their point of view may not be effective at
that time for resolving the issue properly for VTB.

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configurational analysis. Industrial Management & Data Systems, 112(3), pp.484-501.
Castronovo, C. and Huang, L., 2012. Social media in an alternative marketing communication
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