PRESENTATION ON

STRATEGY EVALUATION AND

CONTROL

BY

TAMANNA SMYLE
GANEESHA

UNDER THE GUDIDANCE OF

PROF. MAMTA MALHOTRA
 STRATEGIC CONTROL
 MEANING:
Strategic control is the process to control
the formation and execution of strategic plans. It is a
specialized form of management control, handle
uncertainty at various points in the control process.
These are intended to direct the company towards its
long term strategic direction. It focus on achievement
of future goals, rather than the evaluation of past
performance. It tracks strategy implementation,
detects problems or changes in the strategy and makes
necessary adjustments. It is the critical evaluation of
plans, activities and results thereby providing
information for the future action.
 TYPES OF STRATEGIC CONTROL
There are four types of strategic control. That is:
 Premise Control
 Implementation Control
 Strategic Surveillance
 Special Art Control

 PREMISE CONTROL:
It defines the key assumptions and key track
of any change in them to assess its impact on strategy and
implementation. The goal is to find if assumptions are still valid
or not. It is generally handled by the corporate planning staff
considering the environmental and organizational factors.
 IMPLEMENTATION CONTROL:
It includes plans, programs, projects to
see if they guide the organization to achieve
predetermined organizational objective or not. It leads
to strategic rethinking. It consists of identification and
monitoring of strategic thrusts.
 STRATEGIC SURVEILLANCE:
It aims at generalized control. It is
designed to monitor a broad range of events inside and
outside the organizations that are likely to threaten
the course of firm. Organizations learning and
knowledge management systems capture the
information for strategic surveillance.
 SPECIAL ALERT CONTROL:
It is a rapid response or immediate
reassessment of strategy in the light of sudden and
unexpected events. It can be executed through formulation
of contingency strategies and a crisis management team.

PROCESS OF CONTROL
The process of control for strategy implementation or
evaluation is made up of five steps as indicated in the
following figures:
 SETTING
PERFORMANCE
STANDARDS

TAKING PROCESS
OF
CORRECTI MEASUREMENT
OF
VE PERFORMANCE

CONTROL
ACTIONS

VARIANC
E
ANALYSI
S
 SETTING PERFORMANCE STANDARDS:
Standards means target or the yardstick
against which the actual performance is measured.
 Strategist counter:
 What standard should be set?
 How should these standard be set?
 In what terms these standards should be expressed?
Three pronged basic approach:
 Key managerial tasks are analyzed to find out the
key performance area
 Type of standard
 Performance indicator
 QUANTITATIVE CRITERIA
There are two ways :
 How it has performed as compared to past
achievements
 Also can compare with performance with the
industry’s average or that of major competitors
 Financial Criteria :
Net profit, stock prices, dividend rates, EPS and
industry average
 QUALITATIVE CRITERIA
 Objective and sophistication can not be sufficient
 Qualitative terms : capabilities
 competencies
 Risk bearing
 Glueck suggested three :consistency,
appropriateness and workability
 Consistency
 MEASURING THE PERFORMANCE:
After setting up of standards , the
performance of the employees is measured by
evaluating the actual work done by the employees.
 Standard performance benchmark as againsts which
the actual performance
 Information system is the key elements
 Measurement is done through reporting and
communication system
 DIFFICULTY IN MEASUREMENT:
 Timing if measurement
 Periodicity of measurement: how often we measure
 VARIANCE ANALYSIS :
Variance analysis is the point out
the variation of actual performance from the standard
or budgeted or expected.
 Actual performance match with budgeted
performance
 The actual performance is better
 the actual performance is below
 CAUSES:
 Internal/external
 Random/expected
 Temporary/permanent
 Validity of strategy
 TAKING CORRECTIVE ACTION:
In this it actual fall outside the
desired tolerance range, action must be taken to correct
the deviation. The following must be determined:
 Is the deviation only a chance fluctuation?
 Are the processes being carried out incorrectly?
 Are the processes appropriate to the achievement of
the desired standard?
 Action must be taken that will also prevent its
recurrence.
PRESENTED BY:
SMYLE MAHAJAN
ROLLNO: 204412
M.COM (2ND SEM)

THANK YOU