Chapter 9Strategy Review, Evaluation, amp; Control.ppt

Copyright 2005 Prentice Hall Chapter 9Strategy Review, Evaluation, Control Strategic Management: Concepts Cases 11th Edition Fred David Chapter Outline Chapter Outline Chapter Outline (cont’d) Organizations are most vulnerable when they are at the peak of their success -- R.T. Lenz -- Strategies become obsolete -- Internal environments are dynamic -- External environments are dynamic Vital to the organization’s well-being Alert management to potential/actual problems in a timely fashion Erroneous strategic decisions can have severe negative impact on organizations Examine the underlying bases of a firm’s strategy Compare expected to actual results Identify corrective actions to ensure that performance conforms to plans Complex sensitive undertaking Overemphasis can be costly counterproductive Strategy Review, Evaluation, Control Have assets increased Increase in profitability Increase in sales Increase in productivity Profit margins, ROI, EPS ratios increased Strategy Review, Evaluation, Control Strategy Review, Evaluation, Control Strategy should not present inconsistent goals policies Strategy Review, Evaluation, Control Strategy Review, Evaluation, Control Need for strategies to examine sets of trends Strategy Review, Evaluation, Control Strategy Review, Evaluation, Control Neither overtax resources or create unsolvable sub-problems Strategy Review, Evaluation, Control Strategy Review, Evaluation, Control Creation or maintenance of competitive advantage Strategy Review, Evaluation, Control Increase in environment’s complexity Difficulty predicting future with accuracy Increasing number of variables Strategy Review, Evaluation, Control Rate of obsolescence of plans Domestic and global events Decreasing time span for planning certainty Strategy Review, Evaluation, Control Initiate managerial questioning Trigger review of objectives values Stimulate creativity in generating alternatives Strategy Review, Evaluation, Control Develop revi