Evaluation: Strategic Management and Strategy

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Evaluating Strategies
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A. INTRODUCTION TO SESSION

Within all organisations there will come times where a proposed course of action, or more likely a number of courses, need to be evaluated. In Session 1, discussion about the nature of strategic management suggested that a strictly sequential model of analysis-choice-implementation stood at one end of a spectrum of descriptions of the strategy process, with most organisations following a more incremental model of strategy development. Never the less, the evaluation of strategic options is an important part of the strategy process, whether largely incremental and implicit or an explicit stage within a formal planning system. However conducted the focus of attention is on the future of the organisation rather than assessing past performance.

In Session 1 it was also argued the strategic analysis “tool kit” could be applied to assist all aspects of strategic management. The primary purpose of this Session is to examine how many of the tools, models and frameworks explored throughout this Module can be used in the assessment and selection of strategic options. This process can also be assisted by applying some of the tools explored in other modules of the course, so where appropriate these are mentioned below.

Your Objectives

By the end of this session you should be able to:

• Outline the range of criteria that can be applied in the evaluation of strategic options.

• Apply relevant tools, models and frameworks to assist in the assessment and selection of appropriate strategic options for organisations.

Reading

G Johnson & K Scholes, Exploring Corporate Strategy Ch. 8
T Jacobs, J Shepherd & G Johnson, “Strengths, weaknesses, opportunities and threats (SWOT) analysis” in V Ambrosini et al., Exploring Techniques of Analysis and Evaluation in Strategic Management
R Rumelt, “The Evaluation of Business Strategy” in B De Wit & R Meyer, Strategy – Process, Content, Context, 2nd ed.

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