STRATEGY EVALUATION

REVIEWING EXTERNAL AND INTERNAL FACTORS

MEASURING PERFORMANCE

TAKING CORRECTIVE ACTIONS

REVIEWING EXTERNAL AND INTERNAL FACTORS
 MEASURING PERFORMANCE

Quantitative criteria evaluating financial

ratios

comparing the firm's performance over

different time periods.
comparing the firm's performance to
competitors.
comparing the firm's performance to
industry averages.
 MEASURING PERFORMANCE

Qualitative criteria evaluating human

factors that causes declining performance

high absenteeism and turnover rates

poor production quality and quantity rates

low employee satisfaction

 TAKING CORRECTIVE ACTIONS

The final strategy-evaluation activity. It

requires making changes to reposition a firm
competitively for the future. Corrective
actions should place an organization in a
better position to capitalize upon internal
strengths; to take advantage of key external
opportunities; to avoid, reduce, or mitigate
external threats; and to improve internal
weaknesses.