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Strategic Evaluation
Strategic Evaluation
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INTRODUCTION
Strategic evaluation and control
constitutes the final phase of
strategic management.
Strategic evaluation operates at two
levels :strategic & operational.
operational control consists of
setting standards, measuring
performance, analysis variances,
and taking correctively action.
NATURE OF STRATEGIC
EVALUATION
The purpose of strategic evaluation is to
evaluate the effectiveness of strategy in
achieving organisational objective.
It is a way of finding out whether the
strategy being implemented will guide the
organisation toward its planned objective.
Strategic evaluation and control, there,
performs the crucial task of keeping the
organisation on the right track.
Importance of strategic
evaluation
Need for feed back
Appraisal and reward
Congruence between decision and
intended strategy
Successful culmination of the
strategic management process.
Creating input for new strategic
planning.
uarticipants in strategic
evaluation
Role of BoD
Role of CE
SBU
Financial
Role of other manager controllers
Middle
level
mangers
Barriers in Evaluation
Limits of controls
Difficulties in measurement
Resistance to evaluation
Relying on efficiency versus
effectiveness
Requirements for effective
evaluation
Involve only the minimum amount of
information.
Monitor only managerial activities
and results.
Control should be a timely.
Long term or short term control
should be used.
Rewards and meeting or exceeding
standards should be emphasized .
Conclusion
An evaluation is used by managers
and owners as an aid to decide which
strategy a business should adopt in
order to accomplish its goals and
objectives at a minimum cost. Your
alternatives might include retaining
the business, selling the business,
buying a business, or raising capital.