Evaluating Strategic Management
NOTE
EVALUATING STRATEGIC MANAGEMENT
The strategic management process result in decision that can have significant, long lasting consequences. In many organizations, strategy evaluation is simply an appraisal of how well an organization has performed. Strategy evaluation includes three basic activities:
1. Examining the underlying bases of firm strategy
2. Comparing expected result with actual result
3. Taking corrective action to ensure that performance conform to plan.
Strategy evaluation is becoming increasingly difficult with the passage of time, for many reasons.
domestic
And world economies were more stable in years past, product life cycles were longer, product development cycles were longer, technological advancement was slower, change occurred less frequently, there were fewer competitors, foreign companies were weak, and there were more regulated industries. Other reasons why strategy evaluation is more difficult today include the following trends:
1. A dramatic increase in the environment ‘s complexity
2. The increasing difficulty of predicting the future with accuracy
3. The increasing number of variables
4. The rapid rate of obsolescence of even the best plans
5. The increase in the number of both domestic and world events affecting organizations
6. The decreasing time span for which planning can be done with any degree of certainty
Four Criteria (Richard Rummelt in evaluating strategic management:
• Consistency
Strategy should not present inconsistent goals and policies.
Conflict and interdepartmental bickering symptomatic of managerial disorder and strategic inconsistency
• Consonance
Need for strategies to examine sets of trends
• Adaptive response to external environment
• Trends are results of interactions among other trends
• Feasibility
Neither overtax resources or create unsolvable sub problems
• Organizations must demonstrate the
EVALUATING STRATEGIC MANAGEMENT
The strategic management process result in decision that can have significant, long lasting consequences. In many organizations, strategy evaluation is simply an appraisal of how well an organization has performed. Strategy evaluation includes three basic activities:
1. Examining the underlying bases of firm strategy
2. Comparing expected result with actual result
3. Taking corrective action to ensure that performance conform to plan.
Strategy evaluation is becoming increasingly difficult with the passage of time, for many reasons.
domestic
And world economies were more stable in years past, product life cycles were longer, product development cycles were longer, technological advancement was slower, change occurred less frequently, there were fewer competitors, foreign companies were weak, and there were more regulated industries. Other reasons why strategy evaluation is more difficult today include the following trends:
1. A dramatic increase in the environment ‘s complexity
2. The increasing difficulty of predicting the future with accuracy
3. The increasing number of variables
4. The rapid rate of obsolescence of even the best plans
5. The increase in the number of both domestic and world events affecting organizations
6. The decreasing time span for which planning can be done with any degree of certainty
Four Criteria (Richard Rummelt in evaluating strategic management:
• Consistency
Strategy should not present inconsistent goals and policies.
Conflict and interdepartmental bickering symptomatic of managerial disorder and strategic inconsistency
• Consonance
Need for strategies to examine sets of trends
• Adaptive response to external environment
• Trends are results of interactions among other trends
• Feasibility
Neither overtax resources or create unsolvable sub problems
• Organizations must demonstrate the