Strategy Review, Evaluation, and Control

Good Essays
OVERVIEW

The best formulated and implemented strategies become obsolete as a firm’s external and internal environments change. It is essential, therefore, that strategists systematically review, evaluate, and control the execution of strategies. Chapter 9 presents a framework that can guide managers’ efforts to evaluate strategic-management activities, to make sure they are working, and to make timely changes. Computer information systems being used to evaluate strategies are discussed. Guidelines are presented for formulating, implementing, and evaluating strategies.

I. THE NATURE OF STRATEGY EVALUATION

A. Importance of Strategy Evaluation

1. The strategic-management process results in decisions that can have significant, long-lasting consequences. Erroneous strategic decisions can inflict severe penalties and can be exceedingly difficult, if not impossible, to reverse.

2. Most strategists agree, therefore, that strategy evaluation is vital to an organization’s well-being; timely evaluations can alert management to problems or potential problems before a situation becomes critical.

3. Strategy evaluation includes three basic activities:

a. Examining the underlying bases of a firm’s strategy.
b. Comparing expected results with actual results.
c. Taking corrective actions to ensure that performance conforms to plans.

5.4. Strategy evaluation can be a complex and sensitive undertaking. Too much emphasis on evaluating strategies may be expensive and counterproductive. Yet, too little or no evaluation can create even worse problems. Strategy evaluation is essential to ensure that stated objectives are being achieved.

6.5. It is impossible to demonstrate conclusively that a particular strategy is optimal, but it can be evaluated for critical flaws. As described in Table 9-1, here are four criteria to use in evaluating a strategy:

a. consistency
b. consonance
c. feasibility
d. advantage

7.6. These trends make strategy evaluation difficult:

a. dramatic

You May Also Find These Documents Helpful

  • Powerful Essays

    L. Strategy Evaluation and Control This unit deals with the last phase of strategic management. The formulation of strategy lays down the strategic intent and the strategy required to achieve them. The end result is adjustment of strategies reformulation of objectives or adoption of plans. Strategic evaluation and control is the process of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective action wherever required ‘Evaluation of strategy…

    • 2159 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    A marketing strategy can achieve its desired result only if implemented properly. Actual performances is often differences from expectation. There are four possible cause for this difference : 1. The marketing strategy was inappropriate or unrealistic 2. The implementation was inappropriate for the strategy 3. The implementation process was mismanages 4. The internal or external environment changed substantially between development of the marketing strategy and its implementation…

    • 542 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Strategy Evaluation

    • 2732 Words
    • 11 Pages

    Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in todays dynamic world with socio-economic, political and technological innovations. Strategic Evaluation is the final phase of strategic management.The significance of strategy evaluation lies in its capacity to co-ordinate the task performed…

    • 2732 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Strategy Evaluation

    • 1674 Words
    • 6 Pages

    Suppose your company has just acquired a firm that produces battery-operated lawn mowers, and strategists want to implement a market-penetration strategy. How would you segment the market for this product? Justify your answer. Explain how you would estimate the total worth of a business. In order to estimate the total worth of a business, I would determine its net worth or stockholders equity. After calculating net worth, I would add or subtract an appropriate amount for goodwill and overvalued…

    • 1674 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Strategy Evaluation

    • 2021 Words
    • 9 Pages

    Strategic Management is the art and science of formulation, implement and evaluation cross-functional decisions that enable an organization to achieve its objective. Strategic Management has changed to meet the challenges of each decade of business development and has been significantly impacted by globalization. Organizations using strategic management are more successful than organizations that do not employ this central process. Strategic Management is often referred to…

    • 2021 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    The Evaluation and Control Process Strategic Management and Planning Michael Donovan Final Exam Eric G. Tankard Potomac College April 22, 2011 Abstract “Strategic management is the professional discipline related to the development of strategic goals and plans to achieve these goals. Performance is an important part of strategic management because it allows managers to see if plans are being successfully implemented. There are four key types of performance…

    • 3079 Words
    • 13 Pages
    Best Essays
  • Good Essays

    Internal Control Evaluation Every business should take the steps necessary to ensure that its internal controls are functioning effectively and efficiently. It is important to have accountability at every level of a business. Creating a checklist to evaluate internal controls will support the business in this effort. According to Louwers, Ramsay, Sinason and Stawser (2007), an internal control questionnaire aide an auditor in gathering evidence about the control environment and accounting and…

    • 645 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Evaluation of Canon’ Strategies The first part of this investigation involves an evaluation of the strategies used by Canon and the key factors for success. In order to being this review, it is first necessary to consider how the company has performed in recent years. Table 1 provided below provides an overall review of the organization’s performance in recent years. The data clearly suggests that Canon has made notable progress toward developing market share, revenues and profitability. In…

    • 2077 Words
    • 60 Pages
    Best Essays
  • Satisfactory Essays

     Strategy Evaluation: Introduction Participants in strategic evaluation Analysis of External Environment Organization Setting objective (Long & Short Term) Strategy Formulation 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…

    • 1273 Words
    • 6 Pages
    Satisfactory Essays
  • Better Essays

    Controls for Differentiated Strategies Different strategies influence management control processes, internal and external factors like size, environment, technology, interdependence and strategies forge together to what researchers call as the contingency theory. These strategies and their influences in management control systems are tendencies, not hard and fast rules. Linking controls to strategies is based on various thinking: (1) Different organizations operate in different strategic context…

    • 1276 Words
    • 6 Pages
    Better Essays