Strategic Evaluation and Control

By :-Heena Saluja :Subject:Subject:- Business Policy And Strategic Management Roll no:- MBA0719 no:-

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.

Participants in strategic evaluation
Role of BoD

Role of CE SBU Role of other manager Financial 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.

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