MODULE 6 STRATEGY

EXECUTION
Shiju Sebastian,PhD

Mission Vision Core Values

Christ University is a nurturing ground for an individual’s holistic Excellence and Service Faith in God | Moral Uprightness
development to make effective contribution
S er v e
Love of Fellow Beings | icSocial
e & of Excellence
Responsibility
to the society in a dynamic environment CHRIST (Deemed to be University)ExcellencPursuit
 Topics
Transitioning from formulating to
implementing strategies
Need for clear annual objectives, policies,
allocation of resources and conflict
management
Matching structure and strategy, types of
organizational structure
Do’s and Don’ts in developing organizational
charts
Strategic production and operation issues
Strategic human resource issues
Ethical issues/dilemmas hindering
strategy implementation
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Let us run through the example of Tata Motors,
an iconic Indian company that underwent a
significant strategy shift in the past few years.
Tata Motors transitioned from focusing on
traditional internal combustion engine (ICE)
vehicles to embracing electric vehicles (EVs),
aligning with global trends and environmental
demands. Here's how they navigated the
transition from formulating to implementing
their new strategy:
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1. Setting Clear Annual Objectives
Breaking Down Long-Term Vision:
Tata Motors aimed to become a leader in the
Indian EV market, part of their long-term strategy
to support sustainable mobility.
To move from vision to execution, they set clear
annual goals, such as launching new electric
models like the Tata Nexon EV, developing robust
EV infrastructure partnerships, and increasing
their EV sales percentage annually.
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SMART Objectives:
Each goal was specific and measurable.
For example, one objective was to
increase EV sales by a certain percentage
within a year, with the aim of capturing
10% of the overall market by 2025.
This ensured each step of their journey
could be tracked and modified as
necessary.
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2. Developing Supporting Policies
Consistency with Strategy:
Tata Motors developed policies that
supported their EV strategy, such as
investing heavily in green energy initiatives
and research and development for battery
technology.
They also collaborated with government
schemes like the Faster Adoption and
Manufacturing of Hybrid and Electric
Vehicles (FAME) in India, which offered
subsidies for EVs.
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Operational Guidance:
Policies around partnerships with
charging infrastructure providers,
such as Tata Power, ensured that
the development of a supportive
ecosystem around EVs was rapid
and aligned with their product
launches.
The policies also included internal
guidelines for how ICE production
would slowly shift focus toward
EVs.
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Financial Resources:
Tata Motors allocated significant financial
resources to its EV division, with
dedicated investments into the research
and development of electric powertrains,
battery technology, and EV-specific
platforms like the "Ziptron" technology.
This allocation signaled the company’s
commitment to its new strategy.
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Human Resources:
The company restructured its
talent pool, moving key
engineers, designers, and
innovators into its EV
division.
They also recruited talent
from global EV players,
bringing in expertise that
aligned with the company’s
renewed vision.
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Technology & Infrastructure:
Tata Motors invested in
building local manufacturing
capacities for EVs, including
battery assembly plants
Dedicated production lines for
electric vehicles, making sure
the infrastructure was in place
to support rapid scaling.
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Technology & Infrastructure:
Tata Motors invested in
building local manufacturing
capacities for EVs, including
battery assembly plants
Dedicated production lines for
electric vehicles, making sure
the infrastructure was in place
to support rapid scaling.
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4. Conflict Management
Identifying Potential Conflicts
Early:
During such a radical shift, internal
conflicts were expected between
departments focused on ICE vehicles
and those pushing the EV strategy.
For instance, sales teams might resist
focusing on EVs if ICE vehicles were
still more profitable in the short term.
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Conflict Resolution Mechanisms:
Tata Motors used cross-functional teams
and frequent dialogue between
management and ground-level teams to
mediate tensions.
Conflicts related to short-term
profitability versus long-term strategic
goals were addressed by setting clear
communication channels between top
management and operational staff,
ensuring buy-in at all levels.

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Open Communication:
Tata Motors ensured that all
stakeholders, including employees,
investors, and consumers, were kept
informed about the company's
future.
Public announcements regarding
Tata's commitment to sustainability
were made regularly to build
internal alignment and external
support.
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 5. Matching Structure and Strategy
Structural Alignment:
As part of its strategy shift, Tata
Motors revamped its organizational
structure to create a new EV division
with its own leadership team.
This division had significant
autonomy to innovate, explore new
markets, and drive product
development while still reporting to
the larger Tata Group.
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Decentralization or Centralization:
Tata Motors opted for a decentralized
approach in certain areas, like research
and development, to foster faster
innovation in EV technologies.
However, strategic initiatives like
government partnerships and large-
scale infrastructure projects remained
centralized to leverage the group’s
influence and resources.
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Flexibility and Adaptability:
Tata Motors allowed flexibility in
their ICE vehicle segment, which
continued to operate in parallel,
ensuring the company could serve
both the traditional and EV
markets.
The company’s ability to scale up or
down its EV production, depending
on market response, demonstrated
their adaptive structure.
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Tata Motors’ transition showcases the
importance of turning strategy into action
through well-defined objectives, resource
realignment, and conflict management, all
while ensuring that the organizational
structure supports the new strategy. This
approach helped Tata Motors maintain a
competitive edge in an increasingly
electric world, and their annual objectives
kept the momentum in a rapidly
evolving industry.
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1. Types of Organizational Structure
Functional Structure: Groups employees based on
their functions (e.g., marketing, operations, finance).
This is efficient for specialization but can lead to
silos. Early-stage startups like Zomato often start
with this model.
Network Structure: Uses external organizations or
partners to accomplish key tasks. Zomato relies on
this with restaurant partners and delivery
personnel, which are often independent contractors.

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Matrix Structure: Combines functional and
divisional structures, allowing employees to
report to both product and function managers.
This fosters collaboration but can be complex to
manage.
Flat Structure: A more decentralized structure
with fewer management layers, commonly used
by startups like Zomato early on, allowing
faster decision-making but potentially leading
to less oversight as the company grows.

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Divisional Structure: The
organization is split into
divisions based on product lines,
markets, or geographical areas.
Zomato, as it expanded
internationally and diversified
services, moved toward a
divisional structure with
separate units for India, the
Middle East, and its cloud
kitchen operations.

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2. Do’s and Don’ts in Developing
Organizational Charts
Do’s:
Clarify Roles and Responsibilities:
Clearly define the hierarchy, who
reports to whom, and individual
responsibilities.
Align with Strategy: The structure
should support the business strategy.
For example, Zomato’s chart needed
to reflect its focus on scalability and
expansion.
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Do’s:
Ensure Flexibility: Startups like
Zomato operate in rapidly
changing environments. The
structure should allow room for
quick pivots.
Encourage Communication: The
chart should foster communication
across functions, especially in
cross-functional roles like product
and engineering.
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Don’ts:
Avoid Over-Complexity:
Startups should avoid overly
complex charts that hinder
decision-making. A simpler
structure ensures faster
execution.
Don’t Create Bottlenecks: Ensure
that critical decisions aren't
bottlenecked by too many layers
of approval.
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Avoid Overloading a Single
Department: Make sure no
team is overwhelmed.
Zomato had to balance its
technology, customer
service, and operations
departments to maintain
smooth functioning during
high-demand periods.
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 3. Strategic Production and
Operation Issues
Scalability: Zomato faced the challenge of scaling its
delivery network while ensuring quality and timely
service. Scaling operations in new cities required robust
logistics and partnerships with restaurants.
Efficiency: The efficiency of operations became critical as
demand surged. Zomato had to invest in technology and
algorithms to optimize delivery routes and reduce
delivery times.
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Supply Chain: A key issue for Zomato was
managing the supply chain when they entered the
cloud kitchen space, ensuring that ingredients,
staff, and equipment were available for multiple
locations without operational breakdowns.
Tech-Driven Operations: As a tech-driven platform,
Zomato constantly had to ensure that its app, user
interface, and delivery management systems
worked seamlessly, requiring constant innovation
in its tech infrastructure.

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4. Strategic Human Resource Issues
Employee Engagement: Startups like Zomato
often face burnout issues. Keeping employees
motivated and engaged through compensation,
career development, and work-life balance
became strategic.
Diversity and Inclusion: As Zomato expanded,
fostering an inclusive culture became important,
especially as the company aimed to cater to
diverse global markets.
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Talent Acquisition and Retention: Zomato
needed to attract top talent to remain
competitive, especially in the tech and
operations sectors. Retaining this talent in a
high-pressure, fast-growing environment posed
a challenge.
Training: As Zomato scaled, training became a
key issue. Delivery personnel, often gig workers,
needed proper training on customer interaction,
app usage, and food safety protocols.

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5. Ethical Issues and Dilemmas Hindering
Strategy Implementation
Gig Economy Worker Rights:
Zomato’s reliance on delivery
personnel, many of whom are
gig workers, led to ethical
dilemmas around job security,
fair wages, and benefits. The
lack of a traditional
employment model brought
negative attention to labor
practices.
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Data Privacy: Zomato
collects huge amounts of
user data, from ordering
preferences to location.
Maintaining customer
trust by safeguarding this
data and preventing
breaches has been an
ongoing ethical
challenge.
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Environmental
Responsibility: As a food
delivery platform, Zomato
faced criticism for its
contribution to
environmental waste (e.g.,
plastic packaging). Balancing
growth with environmental
responsibility became a
strategic and ethical
consideration.
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Fair Competition: The
company also had to
navigate accusations of
undercutting restaurant
partners with aggressive
discounting, which created
tension in its ecosystem.
Maintaining ethical business
practices while pushing for
profitability was a dilemma.

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Zomato's growth provides insights into how startups
can navigate the intricacies of organizational
structure, strategy execution, and ethical dilemmas:

Initially, Zomato started with a flat

structure, allowing for fast decision-
making. As it expanded into different
markets and services, it moved
toward a divisional structure to
handle international markets and
new ventures like cloud kitchens.

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Organizational charts were kept
flexible, reflecting their need for fast
scalability, while ensuring that roles
were clearly defined to avoid
operational bottlenecks.
Operational issues such as delivery
efficiency and supply chain
management became critical as
Zomato grew, requiring heavy
investment in technology to
optimize the logistics of its platform.

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In terms of human resources, acquiring top talent,
ensuring employee engagement, and managing a vast gig
workforce were central to Zomato's ability to deliver on its
strategic objectives.
Finally, ethical issues surrounding the gig economy, data
privacy, and environmental impact emerged as significant
challenges that needed careful management to avoid
reputational damage.
By addressing these issues thoughtfully, Zomato was able
to cement its position as a leader in the Indian food-tech
space while navigating the growing pains of rapid scaling.

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Thank
You
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