HIMACHAL PRADESH

NATIONAL
LAW UVIVERSITY

DEPARTMENT OF MANAGEMENT

STRATEGIC MANAGEMENT

TYPES OF STRATEGIC CONTROL

Submitted to:- Submitted by:-

Mrs. Esha Sharma Roll No. 1120171845
B.B.A. LL.B (Hons)
2nd Semester
ACKNOWLEDGEMENT:

I Prashant Bhardwaj would like to express my special thanks to my teacher Mrs.

Esha Sharma who gave me this great opportunity to work on this assignment on
the topic Types of Strategic Control, this helped me in doing a lot of research
and because of this I learned many new things about the assigned topic. I would
like to thank my teacher for good guidance and adequate supply of knowledge
whenever required during this assignment as well as in the class.

I would also like to thank the Himachal Pradesh National Law University to
provide ample amount of resources and books in library which assessed me in
doing my studies on this particular topic. I would also like to thank my family
for constant support and motivation and my friends and classmates for
providing their aid whenever I needed it.

Lastly I would like to thank almighty god for blessing me with good health
which made everything possible.
TABLE OF CONTENT: -

Acknowledgement

Introduction…………………………………………………………………………………1

Premise Control…………….……………………………………………………………….2

Implementation Control…....………………………………………....................………...3

Strategic Surveillance………………………………………………………………………4

Special Control.…………………………………………………………………………….5

Conclusion………………………………………………………………………………….6

Bibliography
INTRODUCTION:

Strategic Control is a
process which is used by
various organization and
firms to control the
formulation and
implementation of various
strategic plans which are
for the benefit of that organization. This process basically focuses on the achievement of the
future goals and objectives of an organization. The process of strategic management makes it
clear that a particular strategy is formulated on the basis of various assumptions. These
assumptions are derived from various organizational or internal and environmental or
external factors. The factors which are considered in the formulation of a particular strategy
are very dynamic in nature and changes frequently, whether organizational factor or
environmental factors both are not stable for a period of time. The formulation of strategy and
the implementation of that very strategy require time and sometimes there are a considerable
time gap between the formulation and the implementation of a particular strategy. And with
the change in the environmental factors and the organizational factors, the assumptions and
measures on which a particular strategy is formulated also changes, thus strategic control take
into account the changing assumptions that determine a strategy, continually evaluate the
strategy as it is being implemented, and take the necessary steps to adjust the strategy to the
new requirements. Strategic control is an early evaluating system and is very different from
the evaluating system post implementation.

It is a continuous evaluating system and if further divided into four parts, these are as
follows:

1. Premise Control
2. Implementation Control
3. Strategic Surveillance
4. Special Alert Control

The method of strategic control is basically a tracking method for the process of
implementation of a particular strategy.
PREMISE CONTROL:

As discussed above a strategy is based on certain planning premises or predictions or various

assumptions considering the organizational and the environmental factors. Premise control is
designed to check methodically and constantly whether the premises, predictions and
assumptions on which a strategy is formulated and is being implemented are still valid or not.
If it is being discovered by a strategic manager that discovers any important premise or
assumptions on which the strategy is being formulated is no longer valid, then that strategy
may have to be changed wholly or partly. The sooner an organization recognizes and rejects
an invalid premise, the better. This is because the strategy can be adjusted to reflect the
reality.

Planning premises/assumptions are established early on in the strategic planning process and
act as a basis for formulating strategies.

“Premise control has been designed to check systematically and continuously whether or not
the premises set during the planning and implementation process is still valid.

It involves the checking of environmental conditions. Premises are primarily concerned with
two types of factors:

 Environmental factors: this may include the external factors which are being used to
determine the threats and opportunities for an organization. It confines in its ambit the
various changes like the market, politics and laws for example, inflation, technology,
interest rates, regulation, and demographic/social changes.
 Industry factors: It includes the factors which are related to that particular industry
and can be helpful or a threat for the upcoming implementation for example, competitors,
suppliers, substitutes, and barriers to entry.
All premises may not require the same amount of control. Therefore, managers must select
those premises and variables that are likely to change and would a major impact on the
company and its strategy if they did.
IMPLEMENTATION CONTROL:

There are various steps required to implement a particular strategy and the required activities,
investments and acts takes a long period of time. A strategic manager mobilizes resources,
carry out special projects and employ or reassign staff. Implementation control is the type of
strategic control that must be carried out as events unfold. There are two types of
implementation controls:

 Strategic thrust
 Milestone review

Strategic thrusts provides with information that helps to determine whether the overall
strategy is shaping up as planned. While milestone reviews helps to monitor the progress of
the strategy at various intervals or milestones.

Implementation control is designed to assess whether the overall strategy should be changed
in light of unfolding events and results associated with incremental steps and actions that
implement the overall strategy. Strategic implementation control does not replace operational
control. Unlike operations control, strategic implementation control continuously questions
the basic direction of the strategy. The two basic types of implementation control are:
1. Monitoring strategic thrusts (new or key strategic programs). Two approaches are
useful in enacting implementation controls focused on monitoring strategic thrusts: (1)
one way is to agree early in the planning process on which thrusts are critical factors in
the success of the strategy or of that thrust; (2) the second approach is to use stop/go
assessments linked to a series of meaningful thresholds (time, costs, research and
development, success, etc.) associated with particular thrusts
2. Milestone Reviews. Milestones are significant points in the development of a
programme, such as points where large commitments of resources must be made. A
milestone review usually involves a full-scale reassessment of the strategy and the
advisability of continuing or refocusing the direction of the company. In order to control
the current strategy, must be provided in strategic plans.
STRATEGIC SURVEILLANCE:

Strategic surveillance is a method which observes various events which effects or hinders the
implementation of a particular strategy of an organization. It is basically a search activity. It
is based on the idea that an organization can uncover important yet unanticipated information
by monitoring multiple information sources. Such sources include trade magazines, journals.
Compared to premise control and implementation control, strategic surveillance is designed
to be a relatively unfocused, open, and broad search activity. Strategic surveillance is
designed to monitor a broad range of events inside and outside the company that are likely to
threaten the course of the firm’s strategy.

The basic idea behind strategic surveillance is that some form of general monitoring of
multiple information sources should be encouraged, with the specific intent being the
opportunity to uncover important yet unanticipated information.

Strategic surveillance appears to be similar in some way to “environmental scanning.” The

rationale, however, is different. Environmental, scanning usually is seen as part of the
chronological planning cycle devoted to generating information for the new plan.
By way of contrast, strategic surveillance is designed to safeguard the established strategy on
a continuous basis.
SPECIAL ALERT CONTROL:

A special alert control is the rigorous and rapid reassessment of an organization’s strategy
because of the occurrence of an immediate, unforeseen event. An example of such event is
the acquisition of your competitor by an outsider. Such an event will trigger an immediate
and intense reassessment of the firm’s strategy. Form crisis teams to handle your company’s
initial response to the unforeseen events. A special alert control is the need to thoroughly, and
often rapidly, reconsiders the firm’s basis strategy based on a sudden, unexpected event.

The analysts of recent corporate history are full of such potentially high impact surprises (i.e.,
natural disasters, chemical spills, plane crashes, product defects, hostile takeovers etc.).
While Pearce and Robinson suggest that special alert control be performed only during
strategy implementation, Preble recommends that because special alert controls are really a
subset of strategic surveillance that they be conducted throughout the entire strategic
management process.
CONCLUSION:

Strategy is not just about formulation but it also includes a successful implementation on the
ground. Implementation of a particular strategy requires a proper check and balance between
the factors and assumptions on which that strategy is being formulated because the
environment being dynamic and the employees who are considered to be the most important
factor of any organization are dynamic thus requires a proper check at a proper interval of
time. So for the successful implementation of a particular strategy the methods of strategic
control are being designed so that proper analysis can be done and changes can be made
accordingly which will at last determine the proper implementation.
BIBLIOGRAPHY:

Azhar Kazmi,& Adela Kazmi, Strategic Management, ed 4 (2015)