25-06-2012, 04:55 PM
STRATEGY EVALUATION and STRATEGY CONTROL
BUSINESS POLICY.pptx (Size: 110.53 KB / Downloads: 32)
Strategy Evaluation
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 today's dynamic world with socio-economic, political and technological innovations.
Strategic Evaluation is the final phase of strategic management.
Analyzing Variance –
While measuring the actual performance and comparing it with standard performance there may be variances which must be analyzed.
The strategists must mention the degree of tolerance limits between which the variance between actual and standard performance may be accepted
Taking Corrective Action –
If the performance is consistently less than the desired performance, the strategists must carry a detailed analysis of the factors responsible for such performance.
If the strategists discover that the organizational potential does not match with the performance requirements, then the standards must be lowered.
Strategic control
Strategic control can be defined as process of monitoring as to whether to various strategies adopted by the organization are helping its internal environment to be matched with the external environment.
Strategic control processes allow managers to evaluate a company's program from a critical long-term perspective. This involves a detailed and objective analysis of a company's organization and its ability to maximize its strengths and market opportunities.
Determine what to control:
Managers usually base their major controls on the organizational mission, goals and objectives developed during the planning process.
Managers must make choices because it is expensive and virtually impossible to control every aspect of the organization’s
Set Control Standards:
A control standard is a target against which subsequent performance will be compared.
Standards are the criteria that enable managers to evaluate future, current, or past actions.
They are measured in a variety of ways, including physical, quantitative, and qualitative terms.
Five aspects of the performance can be managed and controlled: quantity, quality, time cost, and behavior.