Presented By: G.S.V.S.Surya Teja,

12NA1E0007,MBA{3rd Semester}.

STRATEGIC MANAGMENT

STRATEGIC EVALUATION & CONTROL

INTRODUCTION This unit deals with the last

phase of strategic management . The formulation of strategy lays down the strategic intent and the strategy required to achieve them . The end result is adjustment of strategies reformulation of objectives or adoption of plans

MEANING Strategic evaluation and

control is the process of determining the effectiveness of a given strategy in achieving the organizational objectives and taking corrective action wherever required

DEFINITIONS ‘Evaluation of strategy

is that phase of the strategic management process in which the top managers determine whether their strategic choice as implemented is meeting the objectives of the enterprise.’

-GLUECK &JAUCH

CHARACTERISTICSEvaluation and control likely to be successful if

the prevailing hierarchy of systems manifest the following basic characteristics :

Control to report deviation framework Control to attain planned objectives &

implemented strategies Control that is understandable Human aspects of control Strategic point control Control to fit the organizations Control for the corrective action Flexible control Cost effective control Control for objective

PARTICIPANTS IN STRATEGIC EVALUATION

The participants in the strategic evaluation are mentioned as follows

• Shareholders• Board of directors • Chief executives• The managers• Financial controllers , company

secretaries and auditors• Audit & executive commitees

BARRIERS IN EVALUATION Five major types of barriers

can be pointed out : Limits of control Difficulties in measurement Resistance to evaluation Short – term implications Relying on efficiency versus

effectiveness

REQUIREMENTS FOR EFFECTIVE EVALUATION Control should involve only the minimum

amount of information as too much information tends to clutter up the control system and creates confusion

Controls should be timely so that corrective action can be taken quickly

Controls should aim at pinpointing exception as nitpicking does not result in effective evaluation

Reward of meeting or exceeding standards should be emphasized so that managers are motivatedto perform

CONCLUSION Strategic evaluation is

to monitor and evaluate progress towards organizations objectives and to guide or correct the process or change the strategic plan to better accord with current condition and purposes .

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