j

•East Africa university

•Presentation
•Subject : strategic
management
 Students names
1. Abdirahman mohamed jama 2836
2. Ahmed abdi ali 2780
3. Omar abdulahi artan 2795
4. Mohamed jama osman 2796
5. Abdikhadar ali salad 2451
• Abdirahman mohamed jama
• Strategic evaluation and
control
Definition of strategic evaluation and control

•strategic evaluation and control could

be defined as the process of
determining the effectiveness of a
given strategy in achieving
organizational objectives and taking
corrective action wherever required.
Three basic activities of strategy evaluation

1. Examining the underlying basis of the firm’s

strategy
2. Comparing actual to expected results
3. Taking corrective action to address
performance gaps
 Reviewing bases of strategy
• Internal strength and weaknesses

• External opportunities and threats

 Measure performance
• Compare the firm’s performance over
different time periods.
• Compare the firm’s performance to
competitors.
• Compare the firm’s performance to industry
averages.
 Taking Corrective Action

• Taking corrective action is the final strategy

evaluation activity. It requires making changes to
competitively reposition a firm for the future.
Examples of changes that may be needed are
altering an organization’s structure, replacing one or
more key employees, selling a division, devising new
policies, issuing stock to raise capital, allocating
resources differently, or revising the firm’s mission.
• Taking corrective action is necessary to keep an
organization on track toward achieving its objectives.
Important of strategic evaluation and control

1. Strategic evaluation can help to assess whether the

decisions match intended strategy requirements
2. Strategic evaluation through its process of control ,
feedback, rewards ,and review, helps in a successful
culmination of the strategic management process
3. The process of strategic evaluation provides a
considerable amount of information and
experience to strategists that can be useful in new
strategic planning.
 Key Questions in Evaluating Strategy:

– Are our internal strengths still

strengths?
– Have we added other internal
strengths?
– Are our internal weaknesses still
weaknesses?
– Do we now have other internal
weaknesses?
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– Are our external opportunities still
opportunities?
– Are there now external opportunities?
– Are our external threats still threats?
– Are there now other external threats?
• Mohamed jama osman
 Characteristics/Requirements of an
Effective Strategy Evaluation
System

• Economical: The activities related to evaluation of

strategy must be economical. If they are not cost-
effective, wastage would creep up. A balance needs
to be maintained in obtaining information –not too
much or not too little. Very often, too much data
and too many controls do more harm than good.
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• Meaningful: The strategy-evaluation activities
must be meaningful in the sense that they
have to be related specifically to the
objectives against which strategy has been
adopted. Providing useful information: The
information collected through evaluation
must be useful. Redundant information is
useless to managers in decision-making.
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• Providing timely information: The strategy-
evaluation system should be established in
such a way that. it can provide information to
relevant managers on time. Untimely delivery
of information may mean ‘no information’ as
because they cannot be used whenever they
were needed.
• Ahmed abdi ali
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• Providing a true picture of events: The
strategy-evaluation activities should be able to
provide true picture of what is happening in
the organization regarding the
implementation of strategy.
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• Being directed towards right persons: The
strategy-evaluation system should be directed
to the right persons who really matter in
taking actions based on data. Thus, it should
try to facilitate rather than simply providing
information for information’s sake.
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• Being elaborate and detailed: In large
organizations, strategy- evaluation system
should be elaborate and detailed. This is
needed because existence of many
departments/divisions require effective
• Omar abdulahi artan
Participants in strategic evaluation
• Shareholders
• Board of directors
• Chief executive
• Financial controllers
• Company secretaries
• External and internal auditors
• Audit and executive committees
• Corporate planning staff or department
• Middle level managers
 Purposes of strategic evaluation
• The purposes of strategic evaluation is to
evaluate the effectiveness of strategy in
achieving organizational objectives
• Abdikhadar salad ali
 Types of strategic control
• Premise control:Every strategy is based on certain
planning premises or predictions. Premise control is
designed to check methodically and constantly
whether the premises on which a strategy is
grounded on are still valid. If you discover that an
important premise is no longer valid, the strategy
may have to be changed. The sooner you recognize
and reject an invalid premise, the better. This is
because the strategy can be adjusted to reflect the
reality.
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• Special alert control: 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.
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• Implementing control : Implementing a strategy takes
place as a series of steps, activities, investments, and
acts that occur over a lengthy period. As a manager,
you’ll mobilize 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 thrusts or projects, and milestone
reviews. Strategic thrusts provide you with information
that helps you determine whether the overall strategy is
shaping up as planned.
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• Strategic surveillance : Strategic surveillance
is designed to observe a wide range of events
within and outside your organization that are
likely to affect the track of your organization’s
strategy. It’s based on the idea that you can
uncover important yet unanticipated
information by monitoring multiple
information sources.