Chapter 8

Evaluation :Strategy Review and

Monitoring
Strategy Review, Evaluation,
and Control

The best formulated and best implemented strategies

become obsolete as a firm’s external and internal
environments change. Therefore, it is essential for
strategists to systematically review, evaluate, and control
the execution of strategies.
Strategy Review and Control

Strategy Evaluation is vital to an organization’s well

being. Timely evaluations can alert management to
potential or actual problems before a situation
becomes critical.
Strategy Evaluation includes three basic activities:
(1) Examining the underlying bases of a firm’s
strategy. : Mission, Vision Objectives
(2) Comparing expected results to actual results.
(3) Taking corrective actions to ensure that
performance conforms to plans.
Strategy Review, Evaluation, and
Control
The why of Strategy Evaluation
 Adequate and timely feedback is the
cornerstone of effective Strategy Evaluation.
 Strategy Evaluation is important because
organizations face dynamic environments in
which key external and internal factors can
change quickly and dramatically.
 Strategy Evaluation is essential to ensure that
the stated objectives of an organization are
being achieved.
Strategy Review, Evaluation,
and Control

Review of Underlying Bases of Strategy –

 Develop revised IFE Matrix

 Develop revised EFE Matrix

Strategy Review, Evaluation,
and Control
Monitor Strengths & Weaknesses;
Opportunities & Threats

 Are our strengths still strengths?

 Has our organization added additional strengths?
 Are our weaknesses still weaknesses?
 Has our organization developed other
weaknesses?
Strategy Review, Evaluation,
and Control
Monitor Strengths & Weaknesses;
Opportunities & Threats
 Are our opportunities still opportunities?
 Have other opportunities developed?
 Are our threats still threats?
 Have other threats emerged?
Strategy Evaluation Framework

 Table 9-3 summarizes strategy evaluation

activities in terms of key questions that should
be addressed, alternative answers to those
questions, and appropriate actions for managers
to take. Note that corrective actions are needed
except when (1) external and internal factors
have not changed significantly and (2) the firm is
making satisfactory progress toward achieving
its objectives.