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Strategic Control Process

By Prof. JAA Lazenby from his written research


paper and his research paper referenced /
sourced by book named “Strategic Management”
by written “EHLERS & LAZENBY” in 2004.

(Presented by: Mudassir Islam (BBE-1825))


Strategic Control

Strategic control as a component of the strategic
management process

Strategic control is in essence the phase of the strategic
management process that concentrates on evaluating the chosen
strategy in order to verify if the results produced by the strategy
are those intended. Strategies focus on the long-term future and
time elapses between the formulation and implementation of a
strategy and the achievement of its intended results.
Strategic Control Process Model
1. Premise Control
It is used to systematically and continuously check
whether the premises and assumptions on which
the strategy is based are still valid. If a key premise
is no longer valid, a change in strategy may be
required. It is a focused type of strategic control.
Strategic Control Process Model
cont..
2. Strategic Surveillance:
It reviews the content of a strategy is that of
strategic surveillance whereby the organisation
monitors and interprets a broad range of events
both external and internal to the organisation not
previously identified that may affect the course of its
strategy.
Strategic Control Process Model
cont..
3. Special Alert Control:
Special alert control is a focused type of strategic
control that supports strategic surveillance and
premise control in reviewing the content of a
chosen strategy.
Strategic Control Process Model
cont..
4. Implementation Control:
It provides managers information regarding the
success of the implementation process in terms of
anticipated performance levels.
It indicates if the basic strategic direction needs to
be altered. Implementation Control is enabled
through operational control.
Management Information Systems and
Strategic Control

is summarized from research paper named “Strategic


Planning for Management Information Systems”
written by famous Author named “William R. King”
Management Information
Systems and Strategic Control
MIS plays a strategic control in the success of an
organization in the form of effective management
decision making. It can help a business improve
operational efficiency, promote organizational
innovation.
Information System Concepts

An information system very simple as "a set of people,
procedures, and resources that collects, transforms, and
disseminates information in an organization."

"An information system uses the resource of hardware
(machines and media), software (programs and procedures),
and people (specialists and end users) to perform input,
processing, output, storage, and control activities that
transform data resources into information products".
Types of Information Systems

Transaction Processing Systems

Knowledge work and Office Automation
Systems

Management Information Systems and
Decision Support Systems

Executive Support Systems
Information Needs By
Management Levels

Information needs differ at various organizational levels. Organization's information
system must provide information to managers with three levels of responsibilities:
– Operational control
– Management control (tactical)
– Strategic planning
Three categories of activities take place at different levels of the management hierarchy:
– Top management
– Middle management
– Firstline management

The organization is divided into strategic, managerial, knowledge, and operational
levels and further divided into functional areas such as marketing, manufacturing,
finance, and personnel.
Strategic Use of Information
Technology

The role of information and information systems has changed dramatically in
the past last twenty years.

The adoption of computer-based information systems have strategic
consequence for organizations.

The information systems perform four major roles in an organization: support
of business operations, support of management decision making, support of
management control and support of strategic organizational advantages.

Increasingly, information systems are playing even more central role in the firm
a strategic role.
TOP MANAGEMENT &
STRATEGIC CONTROL

This topic is summarized from Book named


“Strategic Management” by author named “Neil
Ritson” from this book pages from 8 to 16.
TOP MANAGEMENT &
STRATEGIC CONTROL cont..
The Basic business strategy model divided into
two Management structures:

Functional Management Structure

Divisional Management Structure
FUNCTIONAL MANAGEMENT
STRUCTURE
How Functional Top Management
enhance Strategic Control ?

Used efficiently specialized resources

Maintain Quality Enhancement

Make opportunities for extensive division of labour.

Experienced Managers manages the specialists easily by grouped together.

Enhances the development of skills and knowledge among specialists.

Promotes the economies of scale throughout the organization.

Stables the interdependence between departments by functional
specialism.
DIVISIONAL MANAGEMENT
STRUCTURE
How Divisional Top Management
enhance Strategic Control ?

It provides excellent co-ordination across functional departments.

Since departmental units are often small, as well as self-contained,
employees identify with the product or project rather than their own
function.

Since each division can, for example, react to customer requirements, it
is well suited to changeable environments.

Promotes clear accountability, longer planning horizons.

Just-In-time (JIT) links between products and the dynamism created
through divisional network.

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