Professional Documents
Culture Documents
Strategic Management:
Concepts and Cases. 9th edition
Fred R. David
PowerPoint Slides by
Anthony F. Chelte
Western New England College
Ch 9-1
Fred R. David
Prentice Hall
Implementing Strategies
-- R.T. Lenz
Ch 9-2
Fred R. David
Prentice Hall
Strategy Review, Evaluation &
Control
Ch 9-3
Fred R. David
Prentice Hall
Strategy Evaluation
3 Basic Activities –
Ch 9-5
Fred R. David
Prentice Hall
Strategy Evaluation
Strategy evaluation –
Ch 9-6
Fred R. David
Prentice Hall
Strategy Evaluation
Ch 9-7
Fred R. David
Prentice Hall
Strategy Evaluation
• Consistency
• Consonance
• Feasibility
• Advantage
Ch 9-8
Fred R. David
Prentice Hall
Rummelt’s Criteria
Consistency
Ch 9-9
Fred R. David
Prentice Hall
Rummelt’s Criteria
Consonance
Ch 9-10
Fred R. David
Prentice Hall
Rummelt’s Criteria
Feasibility
Ch 9-11
Fred R. David
Prentice Hall
Rummelt’s Criteria
Advantage
Ch 9-12
Fred R. David
Prentice Hall
Strategy Evaluation
Ch 9-13
Fred R. David
Prentice Hall
Strategy Evaluation
Ch 9-15
Fred R. David
Prentice Hall
Reviewing Bases of Strategy
Ch 9-16
Fred R. David
Prentice Hall
Reviewing Bases of Strategy
Ch 9-17
Fred R. David
Prentice Hall
Reviewing Bases of Strategy
Ch 9-18
Fred R. David
Prentice Hall
Reviewing Bases of Strategy
Ch 9-19
Fred R. David
Prentice Hall
Reviewing Bases of Strategy
Ch 9-20
Fred R. David
Prentice Hall
Evaluation Framework
I. Review Underlying Bases
Differences? Yes
NO III.
Take
II. Measure Firm Performance Corrective
Actions
Differences? Yes
NO
Ch 9-22
Fred R. David
Prentice Hall
Measuring Organizational
Performance
– Financial Ratios:
• Compare performance over different periods
• Compare performance to competitors
• Compare performance to industry averages
Ch 9-23
Fred R. David
Prentice Hall
Measuring Organizational
Performance
Ch 9-24
Fred R. David
Prentice Hall
Measuring Organizational
Performance
Ch 9-25
Fred R. David
Prentice Hall
Characteristics of Evaluation
– Economical
– Meaningful
– Generate useful information
– Timely information
– Provide a true picture of what is happening
Ch 9-26
Fred R. David
Prentice Hall
Strategy-Evaluation Assessment Matrix
Have major Have major
changes changes
occurred in occurred in Has the firm
the firm’s the firm’s progressed
internal external satisfactorily toward
strategic strategic achieving its stated
position? position? objectives? Result
No No No Corrective actions
Yes Yes Yes Corrective actions
Yes Yes No Corrective actions
Yes No Yes Corrective actions
Yes No No Corrective actions
No Yes Yes Corrective actions
No Yes No Corrective actions
No No Yes Continue course
Ch 9-27
Fred R. David
Prentice Hall
Contingency Planning
Ch 9-28
Fred R. David
Prentice Hall
Contingency Planning
Contingency Planning –
Ch 9-29
Fred R. David
Prentice Hall
Auditing
Ch 9-30
Fred R. David
Prentice Hall