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Important question

1 What is the role of the


organisation system in strategic evaluation with examples.

The organizational system plays a crucial role in strategic


evaluation by providing the structure and processes necessary to
assess the effectiveness of strategic initiatives. For example, a
company might establish a dedicated strategic evaluation team
responsible for analyzing key performance indicators (KPIs),
market trends, and competitive landscapes. This system ensures
a systematic approach to assessing whether strategic goals are
being met and helps in making informed decisions for future
planning and adjustments.

Q2 Strategic management cannot be a rigid stepwise collection of


few activities arranged in a sequential order.

Indeed, strategic management is not a rigid, stepwise process. It's


a dynamic and iterative approach that involves continuous
analysis, adaptation, and learning. Unlike a fixed sequence of
activities, it requires flexibility to respond to changing internal and
external factors. Strategic management involves ongoing
monitoring, reassessment, and adjustment of strategies to align
with evolving circumstances and goals. This adaptability is crucial
for organizations to navigate the complexities of the business
environment effectively.

Q3 How strategy can be based on resources and capabilities.


Explain with a suitable Example or diagram.
In strategic management, leveraging resources and capabilities is
a fundamental concept. Resources include tangible and intangible
assets, while capabilities refer to an organization's ability to
deploy those resources effectively. A widely used framework to
illustrate this is the Resource-Based View (RBV) diagram.

Imagine a simple diagram:

1. **Resource Identification:**
- Tangible resources (physical assets like machinery, facilities).
- Intangible resources (intellectual property, brand reputation).

2. **Capabilities:**
- Core competencies developed from combining resources
(efficient production processes, innovative product development).

3. **Competitive Advantage:**
- The effective deployment of resources and capabilities leads
to a sustainable competitive advantage.

**Example: Apple Inc.**

- **Resources:**
- Tangible: Manufacturing facilities, retail stores.
- Intangible: Brand (strong global recognition), intellectual
property (patents).

- **Capabilities:**
- Design and innovation (ability to create aesthetically pleasing
and cutting-edge products).
- Supply chain management (efficient production and
distribution).
- **Competitive Advantage:**
- Apple's strategic success is built on combining its design
capabilities with its strong brand and global supply chain, creating
products that stand out in the market.

This diagram demonstrates how an organization's resources and


capabilities, when strategically aligned, can provide a unique and
sustainable competitive advantage. The idea is to identify and
leverage distinctive competencies that competitors find hard to
replicate, leading to long-term success in the marketplace.

Q4 Steps involved in the process of strategic control.

The process of strategic control involves several steps to monitor


and adjust the implementation of an organization's strategy. Here
are the key steps:

1. **Establish Standards and Benchmarks:**


- Define clear performance standards and benchmarks against
which the progress of the strategic plan can be measured. These
standards can include financial metrics, key performance
indicators (KPIs), and other relevant criteria.

2. **Monitor Performance:**
- Regularly track and monitor the actual performance against
the established standards. This involves gathering data on key
metrics and assessing whether the organization is on track to
achieve its strategic objectives.

3. **Compare Actual Performance with Standards:**


- Analyze the data collected and compare it with the predefined
standards. Identify any significant variances or deviations
between the expected and actual performance.
4. **Identify Deviations and Causes:**
- If discrepancies are identified, investigate the root causes.
Understand whether the deviations are due to internal factors,
external changes, or unforeseen circumstances. This analysis
helps in determining whether adjustments are needed.

5. **Take Corrective Action:**


- Based on the analysis, implement corrective actions to
address any deviations from the strategic plan. This could involve
modifying the strategy, reallocating resources, or adjusting
specific tactics to bring performance back in line with objectives.

6. **Feedback and Learning:**


- Use the information gathered during the control process as
feedback for learning. Understand what worked well and what
didn't. This knowledge can inform future strategic planning and
improve the organization's ability to adapt to changing conditions.

7. **Adapt and Update the Strategy:**


- If necessary, adapt the overall strategy based on the insights
gained through the control process. This may involve revisiting
goals, refining the strategic plan, or making structural changes
within the organization.

8. **Continuous Monitoring:**
- Establish a system for continuous monitoring and control.
Strategic control is an ongoing process, and regular reviews
ensure that the organization remains agile and responsive to
changes in its internal and external environment.

By following these steps, organizations can effectively manage


and control the implementation of their strategic plans, ensuring
that they stay aligned with their goals and adapt to the dynamic
business environment.
Q5 Propose a system adopted for evaluation of the performance
of your school and suggest the techniques used for evaluation.

**Performance Evaluation System for a School:**

1. **Establish Clear Objectives:**


- Clearly define the goals and objectives of the school's
performance evaluation system. These could include academic
excellence, student satisfaction, faculty development, and overall
institutional effectiveness.

2. **Key Performance Indicators (KPIs):**


- Identify specific KPIs aligned with the objectives. Examples
include:
- Academic Achievement: Exam scores, graduation rates.
- Student Satisfaction: Surveys and feedback.
- Faculty Development: Professional development
participation, research output.

3. **Data Collection:**
- Implement a robust data collection system to gather relevant
information. This could involve:
- Academic records and assessment results.
- Student feedback through surveys.
- Faculty performance reviews and development plans.

4. **Regular Assessments:**
- Conduct regular assessments throughout the academic year
to track progress. This ensures that any issues can be identified
and addressed promptly.

5. **360-Degree Feedback:**
- Incorporate feedback from various stakeholders, including
students, parents, faculty, and staff. This provides a holistic view
of the school's performance.
6. **Benchmarking:**
- Compare the school's performance against industry
benchmarks or similar institutions. This helps identify areas where
improvements can be made.

7. **Technology Integration:**
- Use technology to streamline data collection and analysis.
Student information systems, learning management systems, and
survey tools can aid in efficient evaluation processes.

8. **Performance Review Committees:**


- Establish committees responsible for reviewing performance
data and recommending improvements. Include representatives
from different departments and levels within the school.

9. **Continuous Improvement Plan:**


- Develop a continuous improvement plan based on evaluation
results. This plan should outline specific actions to address
identified weaknesses and enhance strengths.

10. **Transparent Reporting:**


- Ensure transparency in reporting evaluation results to
stakeholders. This promotes accountability and allows for open
communication about the school's performance.

11. **Training and Development Programs:**


- Implement training and development programs for faculty and
staff based on evaluation outcomes. This supports ongoing
professional growth and contributes to overall school
improvement.
By implementing such a performance evaluation system, the
school can systematically assess its effectiveness, address areas
needing improvement, and foster a culture of continuous
enhancement in education delivery and institutional operations.

Q6 Difference between Tangible and intangible resources. Point


out the resources which are most valuable to the organisation.

**Tangible Resources:**
- **Definition:** Tangible resources are physical assets that can
be quantified and measured.
- **Examples:** Buildings, machinery, inventory, cash, equipment.

**Intangible Resources:**
- **Definition:** Intangible resources are non-physical assets that
are valuable but cannot be touched or measured in a concrete
manner.
- **Examples:** Intellectual property (patents, trademarks), brand
reputation, organizational culture, knowledge capital.

**Most Valuable Resources to the Organization:**


The value of resources to an organization can vary based on its
nature and industry. However, in many cases:

1. **Intangible Resources:**
- **Intellectual Property:** Patents, trademarks, and copyrights
can provide a competitive advantage by protecting unique ideas
or products.
- **Brand Reputation:** A strong and positive brand image
enhances customer loyalty and trust, contributing significantly to
long-term success.
- **Organizational Culture:** A positive and adaptive culture can
improve employee morale, productivity, and innovation.
2. **Tangible Resources:**
- **Financial Capital:** Adequate financial resources are
essential for day-to-day operations, expansion, and investment in
other resources.
- **Technological Infrastructure:** Up-to-date machinery and
technology enable efficient production and service delivery.
- **Physical Assets:** Facilities and equipment play a vital role
in the operational capabilities of an organization.

In practice, a combination of tangible and intangible resources is


often most valuable. For example, a company with cutting-edge
technology (tangible) and a strong brand reputation for innovation
(intangible) can outperform competitors. The strategic
management of both tangible and intangible resources is crucial
for sustained success and competitiveness in the business
environment.

Q7 How does the organisation structure becomes hindrance in


strategic implementation?

The organization structure can become a hindrance in strategic


implementation for various reasons:

1. **Rigidity:**
- A rigid organizational structure may resist changes required for
implementing new strategies. Hierarchical and bureaucratic
structures, in particular, can impede the flexibility needed to adapt
to dynamic business environments.

2. **Communication Barriers:**
- In complex or hierarchical structures, communication may be
hindered as information passes through multiple levels. This can
lead to delays, misunderstandings, and a lack of clarity about the
strategic objectives.
3. **Departmental Silos:**
- Functional or departmental silos can emerge, where different
units operate independently with limited collaboration. This lack of
cross-functional communication and cooperation can undermine
the alignment of activities with the overall strategy.

4. **Resistance to Change:**
- Established organizational structures may foster resistance to
change, as employees and managers may be accustomed to
existing roles and processes. This resistance can impede the
adoption of new strategies and initiatives.

5. **Lack of Accountability:**
- Ambiguous lines of authority and responsibility may lead to a
lack of accountability for strategic outcomes. When roles and
responsibilities are unclear, it becomes challenging to ensure that
individuals or teams are held responsible for achieving strategic
goals.

6. **Slow Decision-Making:**
- Hierarchical structures often involve a multi-layered decision-
making process. This can result in slow response times, hindering
the organization's ability to adapt quickly to changes in the
external environment or implement time-sensitive strategies.

7. **Cultural Misalignment:**
- If the organizational culture is not aligned with the strategic
goals, it can impede successful implementation. A culture that
resists innovation or risk-taking may hinder efforts to pursue new
strategic initiatives.
8. **Resource Allocation Challenges:**
- In certain structures, resources may be allocated based on
traditional departmental priorities rather than strategic objectives.
This misalignment can limit the organization's ability to invest in
critical areas needed for successful strategy execution.

9. **Complexity:**
- Overly complex organizational structures with numerous layers
and reporting lines can lead to confusion and inefficiencies. This
complexity can make it difficult for employees to understand the
strategic direction and their roles in achieving it.

10. **Inadequate Skill Sets:**


- The existing skill sets within the organization may not align
with the requirements of the new strategy. The structure may lack
mechanisms for identifying and addressing skill gaps, hindering
effective strategy execution.

Addressing these challenges often involves aligning the


organizational structure with the strategic objectives, fostering a
culture that embraces change, and establishing clear
communication channels to ensure that everyone within the
organization understands and supports the strategic direction.

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