Analysis of External Environment
Setting objective (Long & Short Term)
Strategy Implementation Organization Strategy Evaluation
Strategy Evaluation: Strategy Evaluation can be defined as a process of determining the effectiveness of a given strategy. Therefore, the purpose of strategy evaluation is to evaluate the effectiveness of a strategy that the organization to achieve predetermined goal. Why is strategy evaluation? Strategy evaluation is the key function /task of a manager. Thus the importance of strategic evaluation depends on its abilities to coordinate task performed by individual manager, also group, divisions or Strategic Business Units (SBU). Strategy evaluation is also important for following reasons: Need for feedback Check on the validity of strategic choice Congruence between decisions and intended strategy Creating inputs for new strategic planning Feedback provides information about the performance can know the feedback of the organization or group of organization that is the information about the performance of the organization so that strategic evaluation is important to know the feedback. Example: Medicine company at the end of the month, meet together and give feedback about their performance & then the medical representative/ board take corrective action. For this need strategic leadership. Strategic choice cash cow, dog, question mark, star which should choice in strategic evaluation Relationship between the managers’ decisions and intended strategy. In long term planning need input. What is input, what is previous performance, input created strategic evaluation. Participants in strategic evaluation: Every organization is responsible to its shareholders, lenders and the public in the case of Public Ltd Company. Therefore, shareholders, lenders and the public are the evaluator of the company....