Evaluationofthestrategy.pptVIP

Evaluation of the strategy Organizations are most vulnerable when they are at the peak of their success Erroneous strategic decisions can inflict severe penalties and can be exceedingly difficult, if not impossible, to reverse. 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. 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 No evaluation can create even worse problems. Strategy evaluation is essential to ensure that stated objectives are being achieved. Strategy Review, Evaluation, Control Have assets increased Increase in profitability Increase in sales Increase in productivity Increased Profit margins Strategy Review, Evaluation, Control Increase in environment’s complexity Difficulty predicting future with accuracy Increasing number of variables Strategy Review, Evaluation, Control Initiate managerial questioning of evaluation and assumptions Trigger review of objectives values Stimulate creativity in generating alternatives Managers and employees of the firm should continually be aware of progress being made toward achieving the firm’s objectives. As critical success factors change, organizational members should be involved in determining appropriate corrective actions. Strategy Review, Evaluation, Control Are strengths still strengths? Have we added additional strengths? Are weaknesses still weaknesses? Have we developed other weaknesses? Strategy Review, Evaluation, Control Are opportunities still opportunities? Other opportunities develop? Are threats still threats Other threats emerged? Are we vulnerable to hostile takeover? Strategy Review, Evaluation, Control Compare expected to actual results Investigate deviations from plan Evaluate in