文档介绍：Strategy Review,Evaluation,and Control Chapter 9 Business Policy and Strategy
Strategy Review, Evaluation, and Control
Chapter 9 Business Policy and Strategy (BADM 482)
Strategy Review
Organizations are most vulnerable when they are at the peak of their ess3>.
. Lenz
Strategy Review, Evaluation, and Control
Systematic strategy review, evaluation, and control is necessary because
strategies e obsolete
internal environments are dynamic
external environments are dynamic.
Strategy Evaluation
Strategy evaluation is vital to anization’s well-being.
The purpose of strategy evaluation is to alert management to potential or actual problems in a timely fashion.
Erroneous strategic decisions can have a severe negative impact anizations.
Strategy Evaluation
Three Basic Activities
Examine the underlying bases of a firm’s strategy.
Compare expected to actual results.
Identify corrective actions to ensure that performance conforms to plans.
Adequate and timely feedback is the cornerstone of effective strategy evaluation.
Strategy Evaluation
Strategy evaluation is plex and sensitive undertaking.
An overemphasis on evaluating strategies can be costly and counterproductive.
Strategy evaluation is essential to ensure that stated objectives are being achieved.
Strategy Evaluation
In anizations, evaluation is an appraisal of performance.
Have assets increased?
Increase in profitability?
Increase in sales?
Increase in productivity?
Profit margins, ROI, and EPS ratios increased?
Strategy evaluation must have both a long-run and short-run focus.
Strategies often do not affect short-term operating results until it is too late to make needed changes.
Strategy Evaluation
Four Criteria (Richard Rummelt)
Consistency
Consonance
Feasibility
Advantage.
Consonance and advantage are mostly based on a firm’s external assessment.
Consistency and feasibility are largely based on an internal assessment.
Strategy Evaluation
Consistency
Strategy should not