Professional Documents
Culture Documents
Strategic Evaluation and Control
Strategic Evaluation and Control
control
Strategy Review
Strategy Review
Strategy Evaluationthe 3 Basics
Strategy Review
Effective Strategy Evaluation
Strategy Review
Strategy Evaluation
Strategy Review
Four Criteria (Richard Rumelt):
Consistency
Consonance=fit or harmony
Feasibility
Advantage
6
Consistency
A strategy should not present inconsistent
goals and policies
Consonance
Feasibility
Strategy must neither overtax available
resources nor create unsolvable subproblems.
Strategy Review
Contemporary
Strategy
Evaluation
Difficulties
Increase in environments
complexity
Increasing number of
variables
10
Strategy Review
Contemporary
Strategy
Evaluation
Difficulties
Rate of obsolescence of
even the best plans
Strategy Review
Process of Evaluating Strategies:
Evaluation Framework
Yes
NO
II. Measure Firm Performance
Differences?
Yes
III.
Take
Corrective
Actions
NO
Continue present course
13
16
19
Return on investment
Return on equity
Profit margin
Market share
Debt to equity
Earnings per share
Sales growth
Asset growth
21
23
24
Have major
changes
occurred in
the firms
external
strategic
position?
No
No
No
Corrective actions
Yes
Yes
Yes
Corrective actions
Yes
Yes
No
Corrective actions
Yes
No
Yes
Corrective actions
Yes
No
No
Corrective actions
No
Yes
Yes
Corrective actions
No
Yes
No
Corrective actions
No
No
Yes
Continue course
Result
25
Strategy Review
Characteristics of an effective
system
Strategy Review
Characteristics of an effective system
Strategy Review
Characteristics of an effective
system
Strategy Review
Contingency Planning
Strategy Review
Contingency Planning
Strategy Review
Contingency Planning
Strategy Review
Auditing
Advantage
Auditing
Consistency
Consonance
Contingency plans
Corporate agility
Feasibility
Future shock
MBWA
Measuring
organizational
performance
Planning process
audit
Reviewing the
underlying bases of
an organizations
strategy
Revised EFE matrix
33
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