Professional Documents
Culture Documents
1
Nowadays competitiveness is major
challenges for organizations.
• . What is the purpose of Business
Organization ?
What is difficult ?
5
1.1 Defining Business Policy and Strategic
Management
Business policy
-Is a set of rules, guidelines, and procedures for
smooth functioning of the business
• Business policy defines the scope within which
subordinates in an organization can take decision.
• It permits the low-level management to deal with
the problem issues without consulting top-level
management every time for decision.
• Business policies are the guidelines developed by
an organization to govern its actions.
6
.
• It defines the limits within which decision
must be made.
• Business policy also deals with acquisition of
resources with which organizational goals can
be achieved
• Policies provide the framework or the
guidelines through which objectives can be
achieved.
7
Comparison between policy & strategy
Policy strategy
The blueprint of the Concerned with those
organizational activities new organizational
which are routine in nature decisions
Deals with the daily Deals with organizational
activities essential for strategic decision
effective &efficient running
of the organization
-is what is, or what is not The methodology used to
done achieve a target
8
Distinguish the followings
A. Vision
B. Mission
C. Objectives
D. Strategic objectives
E. Strategies
F. Policies
9
.
What is strategy ?
Strategy is the pattern of activities, followed by an
organization in pursuit of its goals.
A strategy is a comprehensive plan wherein all the
components of plan are interrelated with each
other
A strategy is a unified ,comprehensive, &
integrated plan which associates the firm’s
strategic advantage with the environmental
challenges
Hofer(1979) defines it, as the match b/n the
organization & the environment.
10
.
12
Strategy and plan
• A strategy is a solution to move from where you
are now (A) to where you want to be (B)…or put
another way, it is what you want to happen to
achieve an end.
• A plan is how you will move from (A) to (B). As
such it should support your strategy by providing
a way to reach (B) that provides an acceptable
balance of risk and reward.
• Your strategy is what you want to
do and your plan is how you will do it
13
Strategic management
Strategic means “of” or having to do with strategy
Definition
Where does it want to go?
How it will get there?
15
Need & Benefits of Strategic Management
16
.
Assist business organizations in
influencing environment & put control
on its fate/destiny
Can improve Business profits
motivates organizations to have
positive attitude towards change
makes the organization work in a
systematic manner.
17
Challenges to strategic management
Innovation & Development of products/Services
Issues concerning quality
Boom & recession in the economy
18
Stages of the strategic management process
(3)
1. Strategy formulation
includes developing a vision and mission
identifying an organization external opportunities
weaknesses,
generating alternative strategies and choosing
particular strategies to pursue
Consideration(core competencies, synergy) 19
Core competencies
• Refer to pools of cumulative experience,
knowledge and systems that exist within an
organization and that can be used to reduce
the cost or time required to create a new
resource or extend an existing one.
• Synergy
Synergy mainly deals with “2+2=5” phenomenon
20
2. Strategy implementation
establish annual objectives, devise policies,
motivate employees,
allocate resources
so that the formulated strategies can be executed.
developing a strategy-supportive culture
preparing budgets,
developing & utilization information system and
linking employee compensation to organization
performance.
Implementing strategy means mobilizing employees and
managers to put formulated strategies into action. 21
Strategy evaluation
Deals with assessing the extent to which the
stated goals are being achieved or not.
Three fundamental activities are:
1. Examine the external & internal factors of
current strategies.
2 . Measuring performance
3. Taking correctly action
22
Argenti (1980)identifies 5 phases
1.Organizations should set targets
2.Identify gaps that will emerge b/n targets & the
current strategy
3.Appraise both external & internal environments
4.Formulate new strategy on the basis of appraisal.
5. Implement the strategy by drawing up action plan
&budgets
Roughly , the five groups can be grouped into three.
23
Strategy process.
Argenti(1980)identifies 5 phases in to 3
• .
• .
Strategy Analysis
External Audit
Internal Audit
Strategy
Strategic choice Implementation
Identify Manage change &
options culture
Planning & allocate
Evaluate
resource
options Organization
Select a structure
strategy Strategic control &
Evaluation
24
Adapting to change
• Successful organizations effectively manage
change.
• continuously adapting the bureaucracies,
strategies, systems, products and culture to
survive the shocks and prosper from the forces
that decimate the competition
• The traditional view is that the external
environment is more or less uncontrollable.
• So the environment shapes the organizations &
its activities
25
.
28
.
‘Ethics ‘are consensually accepted
standards of behavior for an
occupation, profession, or trade.
• ‘Morality’ seems to be more general and
perspective. It refers to the precepts of
personal behavior, which are derived
from religious or philosophical grounds.
29
Code of ethics are categorized under three
heads
1 Utilitarian approach
2 Individual right approach
3. Justice approach
30
Utilitarian approach
31
Individual right approach
This approach states that human beings exercise certain
fundamental rights, which the manager should respect in each
& every decision.
-Right or wrong action is also based on the outcome of that
action. However, what is best is based on maximizes utility to
the well-being of the ourselves;
-b/c, ethics are generated from, evaluated or justified by
individuals’ point of view,
E.g.
Shareholder's right to information
Privacy
32
Justice approach
33
Discussion
1. Discuss the three school of strategy with
examples . Explain differences and
similarities among them.
2. Describe the origin of strategy and its
importance for organizations.
3. Explain the difference b/n reactive and
proactive approach with examples.
34
Strategy is partly Proactive and partly Reactive
• A company’s strategy is typically a blend of :
1. Proactive action on the part of managers to improve the
company’s position and financial performance
2. As needed reactions to unanticipated developments and
fresh market conditions.
A company’s situation
External factors
Industry &
Abandoned strategy
competitive condition
Buyers preference New initiative & on going strategy
Societal, political, features
A company’s
economic,
strategy
technological, &
environmental Reactive strategy
considerations Adaptive reactions to changing
Internal factors circumstances
Resource
strengthens &
weaknesses
35
Capabilities
Chapter two
STRATEGY ANALYSIS & FORMULATION
36
STRATEGY ANALYSIS & FORMULATION
Developing Vision & mission
Vision
-Vision describes the route a company intends to take In
developing & strengthening its business. It pants a picture of
a company’s destination & provides a rationale for going
there.
• Vision is a statement of what you would like to
become.
Vision is an imaginary view of the future, which all the
organizational members believe in, and is not easily achieved
The vision statement helps the organizational members to know
where the organization is going to be in the future.
The vision statement should answer the basic question,
what do you want to become? 37
•It should be enduring and an ultimate stretch goal –
most likely something that will never be attained. (i.e.,
We strive to be the world’s best supplier of XXXX)
• it is a source of inspiration;
43
Environmental analysis
• What is environment?
• Environment refers to the
surroundings , external objects ,
influence or circum stances in which
someone or something occurs.
• As the environment affects an
organization in many different ways, it
is very essential for the managers to
understand it.
44
Characteristics of Environment
Environment is complex. The environment includes
many factors, events conditions, & influences
emerging from various sources.
• Environment is dynamic ,the environment is
continuously changing in nature
Environment is multifaceted
The shape and character of an environment relies on the
perception of the observer. Different observers perceive changes
in the environment or new development differently. It is often
observed that the same type of development is considered as an
opportunity by one organization & threat by another organization
Environment has a far – reaching impact
• Environment has a significant impact on organizations.
The growth & profitability of the organization relies
mainly on environment in which it carries out its
operation 45
Major component of an organization’s external environment
47
2. Technological forces
Technological changes & discoveries are having a
dramatic impact on organizations
48
3. Economic forces
Economic factors have a direct impact on the
potential attractiveness of varies strategies.
What are opportunities & threats for organizations?
• Interest rates price fluctuation
• Inflation rates
• Unemployment trend Tax rates
• Import/export factors GDP trend
• productivity levels
49
4. Political, governmental, & legal forces
Political, governmental, & legal forces can
represent key opportunities or threats for both
small and large organizations.
What are opportunities & threats on firms?
• world oil
• Local & state elections
• Import/ export restrictions,
• International investment restriction
• Exchange control restriction
50
A model of the macro-environment(based on Fahey &Narayanan,1986 )
• .
Political factors
Sociological factors
53
Potential entry of new competitors
.
56
Bargaining power of consumers
59
The process of performing an external audit
60
.
F.g. Inputs for forecasting
• .
Scanning
Monitoring
Forecasting
Competitive intelligence
61
Environment scanning
The scanning of environment deals with the
analysis of external environment to a firm for
estimating the environmental changes in future
and for recognizing the already existing changes
Environmental scanning provides information to
the organization about the critical trends and
events before the changes have actually
established.
62
Environmental monitoring
• The environmental monitoring monitors the
evolution of environmental trends, series of
events or sequence of activities.
• The process of monitoring helps the firm to
analyze how drastically the environment trends
are changing the competitive perspective.
• The environmental scanning provide
information about the trends, which needs close
monitoring and close evaluation.
63
Competitive intelligence
64
Environmental forecasting
• Forecasts are educated assumption about
future trends & events.
• Forecasting is complex activity because of
factors such as technological innovation,
cultural change , new changing social values,
unstable economic condition etc.
65
The External environment
• Organizations operate in 3 environments
68
Far environment
•But for most managers the best they can hope for is to
72
ii. Internal assessment
1. The nature of an internal audit
All organizations have strengths & weaknesses in
the functional areas as of business
No enterprise is equally strong or weak in all
areas
A firms strengths that can’t be easily imitated by
competitors are called distinctive competencies,
Building competitive advantages involves taking
advantage of distinctive competencies
73
2. Micro environment
• The players of microenvironment do not affect all
companies in the industry in the same way.
• Their decisions & actions often vary in accordance with
the size capability of strategies of each company.
• Microenvironment of business is usually effected by the
following factors.
Input suppliers or suppliers of inputs
Workers’ & their union
Customers
Marketing inter me diaries
Competitors
The society
74
The process of performing an internal audit
75
Thank you!
CHAPTER III: OPTIONS & ALTERNATIVE
STRATEGIES
After studying this chapter, you should be able to:
Discuss the concept of competitive advantage
• Explain the range of business strategies
• Understand the intensive strategies & sustaining
competitive advantage
• Discuss generic strategies for pursuing
competitive advantage
• Differentiate defensive & offensive business
strategies
• Explain outsourcing strategy 77
3.1 Competitive advantage
iv. Entry barriers, once the company has gained a leadership status it
develops entry barriers for other firms
v. R&D efforts are applied to gain the competitive advantage through cost
reduction, establishment of unique products,etc.
vii. Value chain analysis, the primary & support activities of a firm focus
on improving its value reducing the cost & improving the performance.
81
Value analysis
The term value indicates economic value.
Value analysis is a systematic& critical
assessment of all the cost elements of a product
or services for removing the unnecessary costs.
It is regarded as a cost reduction tool.
• In value analysis ,value refers to the relationship
which exist between function and cost .
Value =Function/cost
• Value can be increased by enhancing the function at
constant cost or by maintaining the same function
by decreasing the costs
82
Value chain analysis
The value chain analysis, deals with the activities which
enhances the capabilities and economic performance of
the firm
Value chain activities has two parts, primary activities &
support activities.
The primary activities are those activities which directly relate
with actual creation ,manufacturing development sales &
servicing of products provided to customers.
The support activities help in supporting the primary
activities.
This activity help the firm in enhancing and coordination and
attain efficiency within the primary the value adding activities of
83
the firm
3.2 Types of growth strategies
• No organization can afford to pursue all the
strategies that might benefit the firm.
• Priority must be established, organizations, like
individuals, have limited resources.
• Both individual & organization must choose
among alternative strategies and avoid excessive
indebtedness.
• Some of the strategies are described in the
following text.
84
3.2.1 Integration growth strategies
Integration could be of two types, vertical & horizontal integrations.
1. Vertical integration ,could be two types:
Backward integration & Forward integration
1 .1. Backward integration means retreating to the source of raw
materials It is a strategy of seeking ownership or increase control
of a firm’s suppliers.
• This strategy can be especially appropriate when a firm’s current
suppliers are unreliable, too costly, or can’t meet the firm’s needs.
Guidelines when backward integration taken as effective strategy
are:
When the number of suppliers is small and the number of
competitors is large
When an organization has both capital & human resources to
manage the new business of supplying its own raw materials
When an organization needs to acquire a needed resource quickly
85
1.2.Forward integration
Forward integration involves gaining ownership or increased
control over distributors or retailers.
Guidelines when forward integration is taken as effective
strategy are:
When an organization’s present distributors are especially
expensive, or unreliable, or incapable of meeting the firm’s
distribution needs.
When an organization has both the capital & human resources
needed to manage the new business of distributing its own
products.
When present distributing or retailers have high profit margins;
this situation suggests that a company profitably could
distribute its own products & price them more competitively by
integrating forward 86
2.Horizontal integration
• Horizontal integration refers to a strategy of seeking ownership of
• Mergers between direct competitors are more likely to create efficiency than
87
3.2.2.Intensive growth strategies
Product/services
Present New
Market penetration
Market
t
Presen
Product
Consolidation
Liquidation Development
Market Diversification
New
development
89
1. Present products, present market
• A firm is pursuing a strategy of market penetration when it decides
to grow its existing market share using existing products or services.
• Consolidation -competitive position requires different actions,
depending on whether the market is growing, mature, or in decline.
• Total withdrawal from a market is referred to as liquidation
• It involves the closure of all activities related to that product/market
territory.
• This option pursued where profitability targets just can’t be met and
resources would be better deployed elsewhere.
Guidelines when market penetration may be effective strategy;
• When current market are not saturated.
• When market share\of competitors declining & industry sales
increasing
• When increasing economies of scale provide major competitive
advantage. 90
2. Present products, new markets,
(market development)
• Here organization takes its existing products, services and
ventures in to new markets. However, this may be a high-
risk strategy
3. New products, present markets (product/ services
development
• This can be a strategic route to growth in established
markets where existing products ranges don’t fully exploit
the available opportunities.
• Product development is a strategy that seeks increased
sales by improving present products/services.
91
4. New products , new markets
(diversification)
• Strategic growth through diversification can be in
related or unrelated businesses.
• Diversification clearly carries significant risk &
uncertainty
Reasons for diversifications
Opportunity to reduce input costs by finding &
controlling a new source of raw materials.
Horizontal integration-synergy
When the firm is in decline stage &looking for
potential new applications
92
Class activity
93
If we were to map these strategies onto Ansoff’s
matrix , the following would result
Product/services
Mar Present New
Market penetration Product development
ket .Open new branches
Consolidation
Present .Information automation .Over telephone banking
Liquidation
.Close branches
94
3.2.3. Generic strategies for pursuing
competitive advantage
1. Porter’s generics strategies
Competit Competitive Advantage
ive
Low cost Differentiation
scope
Broad Cost leadership Brand
target differentiation
95
Cost leadership strategy
• If an organization can achieve & sustain cost leadership,
then it will be an above-average performer in its industry.
• A successful cost leadership strategy usually permeates
the entire firm, as evidenced by high efficiency, low
overhead, limited perks, intolerance of waste, wide span
of control, etc.
• Some risks of pursuing cost leadership are that
competitors may imitate the strategy, then driving
overall industry profits down.
• Drivers of cost advantages:
-economic of scales, economics of learning, product design,
capacity utilization
96
Differentiation based strategy
• Here an organization seeks to be unique in its
industry along some dimensions that are valued by
buyers.
• A firm that can achieve & sustain differentiation will
be an above average performer in its industry.
• A risk is that the unique product may not be
valued highly enough by customer to justify the
higher price.
• When this happens, a cost leadership strategy will
defeat a differentiation strategy.
• Another risk is that competitor may develop ways to
copy the differentiating features quickly. 97
The .
following are some of differentiation strategies.
98
Focus based strategy
• A firm may pursue advantage from cost leadership or
differentiation.
• Focus strategies are most effective when consumers have
distinctive preference or requirements and when rival
firms are not attempting to specialize in the same target
segment.
• Risk of pursuing a focus strategy includes the possibility
that numerous competitors will recognize the strategy &
copy its strategy or customers will drift/flow to others.
99
3.2.4. outsourcing strategy
Outsourcing refers to the process of assigning work to an
outside company instead of carrying it in house.
• A company whose internal business activities are
outsourced is termed as’ client company’
• and accompany who Provides outsourcing service is
known as “outsource provider”.
• Drivers of outsourcing/why/reasons:
Cost-cutting
Better operational efficiency
Scarcity of internal resources
Focus on innovation & core competence(focus on core objectives
& outsource non-core activities)
Lack of functional expertise & domain knowledge.
100
Pros & cons of outsourcing
Advantages of outsourcing
Helps to give emphasis for main objectives
Cost saving especially for “labor”
Gaining outside expertise, capabilities
Acquiring outside technology
• Disadvantages of outsourcing
Loss of control ,create dependence on partners
Creating future competition
101
3.2.5 Defensive & Offensive Business Strategies
103
Offensive strategy
• Implementation of offensive strategic moves
such as initiatives computed to produce a cost
advantage, a differentiation advantage, or a
resource advantage.
• The time required by a successful offensive
strategy to build a competitive advantage depends
on the competitive situations.
104
Types of offensive strategies
1.Initiative to match or exceed competitors strengths
• Offering the product with equal features but at low cost, which
brings opportunity for acquiring market share if the competitor is
not able to bring down its price.
• Use of advanced technologies and make the rivals products
obsolete, adding new features
• which are appealing to the customer of rivals running T.V ads
2. Capitalizing on competitors Loopholes
• Taking an initiative for exploiting the rival’s
weakness can provide a better chance for success
than challenge the strengths of the rivals
3.Multi-dimensional offensive initiatives
• A company can take up simultaneous initiatives and
launch them more or less at the same time across a
wide geographic region
105
4.End- run offensive
.
5.Guerilla offensive
• Small challengers who lack resources and market visibility
used guerilla offensive for attacking its competitors.
• The guerilla offensive is based on hit and run principle here the
competitor tries to capture the sales and market share whenever and
wherever it gets the chance.
• It involves marking sudden & random attack on the leader’s
customers by using tactics like
-occasional reduction in price, or
-surprising the rivals through intensive promotional activity,
• conducting special campaigns to attract buyers away from those rivals who
106
have problem with strikes
3.2.6Merger/Acquisition Growth Business
Strategy
.
107
3,2.7 Strategic alliance
• Strategic alliance exists whenever two or more
independent organizations co-operate in the development,
manufacture, or sale of products or services.
There are three main types of alliance.
1. Joint ventures
Company A and company B setting up company C to
achieve a commonly agreed purpose.
2. Collaborations
A flexible alliance between companies in which a new
corporate form is not necessarily created.
• 3. Consortia, Alliance between more than two partners.
108
CHAPTER IV: Strategy Analysis and choice
• Learning objectives
• After studying this chapter you should be
able to ;
• Explain the nature of strategic choice
• Understand the nature of generating and
selecting choices
• Discuss testing of strategic options and
choice
109
Strategic choice definition
110
2. The process of strategic choice as follows
1.Emphasizing on strategic alternatives
113
4. Testing for suitability, feasibility and acceptability
• Learning objectives
• Explain the characteristic feature of strategy implementation
• Discuss process of strategy implementation
• Identify barriers in strategy implementation
• Discuss the importance of annual objective and policies in
achieving organization commitment for strategies to be
implemented
• Compare & contrast restructuring & reengineering
• Explain why organization structure is so important in strategy
implementation
• Understand the importance of strategy control for successful
importance of 117
ii. what is strategy implementation ?
118
Contrast b/n strategy formulation &
implementation
Strategy formulation Strategy implementation
119
Strategic Implementation
• comprised of ,
setting policies,
designing the organization structure,
and developing a corporate culture, which
helps to meet the organizational objectives
Activity
Think of your organization’s structure, culture,&
system for 1 minute. Tell us how they helped
you for successful implementation.
120
iii. Features of strategy implementation
Action orientation
• The indispensable nature of strategy implementation is, it involves action.
Comprehensive in scope
• Strategy implementation is composed of several aspects and extensive
range of activities& functions.
Demanding varied skills
• Strategy implementation process deals with an extensive range of activities,
Wide ranging involvement
The strategy implementation needs the involvement of middle level managers
• Integrated process
• strategy implementation must act in holistic manner.
121
iv. Mc Kinsey’s 7-s framework
Strategy implementation requires the 7-S factors
1. Strategy: A set of decision & action which aims to
gain competitive advantage
2.structure: The organizational chart presenting ,who
reports to whom, and how task to be divide.
3. Systems: Sequential activities engaged in the daily
operations
4.Style (leadership)
5. Staff (management):It related to employees training
6. Shared values (culture):is subjected to commonly
used beliefs ,mindsets &assumptions
7.Skills (management):concerned with organization’s
dominant capabilities & competencies
122
Assignment 15%
1. What are the Process of strategy implementation
2. Consider your company and write some
offensive and defensive strategies employed by
your company
3. What are the similarity and distinction between
objective and goal
123
v. Major barriers to the process of strategy implementation
124
Ways to improve the implementation
problems
• Adopting a clear model of strategy implementation
• Implementation activities does well based on the skills
and abilities of the managers involved in those activities.
• There is a need for clear model of the strategy
implementation, which can provide unambiguous
guidelines for the managers while the implementing
strategy.
125
Implementing strategies: Management issues
1. Matching structure with strategy
changes in strategy leads to changes in
organizational structure.
Structure should be designed to facilitate strategic
pursuit of the firm and therefore, follows strategy.
However, most of the researchers are of the
opinion that there exist reciprocal relationship
between the strategy and the structure.
• The following figure indicates the two way
relationships existing between the structure and
strategy
126
Strategy determine the structure .The structure also has impact
on strategy .
• .
Strategy
• Affects
• Determines
structure
127
Annual Objectives and policies.
• Annual objective serves as a guideline for action,
directing and channeling efforts and activities of
organizational members.
• Policies refer to specific guidelines, methods,
procedures, rules, forms and administrative practices
established to support and encourage work towards
stated goals.
• Policies set boundaries, constraints, and limits on the
kind administrative actions that can be taken toward
and sanction behavior;
• They clarify what can and can not be done in pursuit of
an organization’s objectives.
128
Some issues that may require a management policy are as follows .
Human Resource
Intangible Specialized skills,
Tangible
Technology knowledge
Financial
Reputation Communication
Physical
Culture motivation
131
Factors prohibit effective resource allocation
132
4. Restructuring and reengineering
Restructuring also called downsizing,
rightsizing, or delayring
• Involves reducing the size of the firm in terms
of:
number of employees,
number of division or units,
or number of hierarchical levels in
the organizational structure.
• The reduction in size is intended to improve
both efficiency and effectiveness.
• Restructuring is concerned primarily with
shareholders well-being rather than employee
well being. 133
Reengineering
Reengineering also called process
management, process innovation or process
redesign
It involves redesigning work, jobs, and
processes for the purpose of improving cost,
quality, service, and speed.
It does not imply employee layoffs.
is concerned more with employee and
customer well-being than shareholder well-
being.
The focus of reengineering is changing the
way work is actually carried out. 134
5. Managing resistance to change
136
Some Strategies to minimize resistance to change
137
Approaches of strategic control
• Organizational controls helps to compare the
actual results VS expected outcomes
• Effectively designed organizational controls
gives clear information and
makes clear about the behaviors, which
improves the firm’s overall performance.
• While designing the organizational controls, the
firm usually, makes use of
strategic control and
financial controls.
138
Difference between strategic
control and financial control.
Strategic control Financial control
evaluating the extent to evaluate the firm’s performance
which the firm is using
adequate strategies
focus on the requirements for measures the firm’s present
implementing its strategies. performance with the past
outcomes as well as with the
competitor’s performance and
industry averages
focus on evaluating the fit focus on evaluating the firm’s
between what the firm might performance with the help of
do and what it can do unrelated diversification strategy
which is concerned with financial
outcomes.
139
strategic control systems
• A firm makes use of two major forms of control
systems for assuring information control:
1. Conventional approaches to strategic control
Formulate strategies
Implement strategies
Strategic control
Implement
Formulate
strategies
strategies
Behavioral control
Informational control
Strategic
control
142
6.1 The nature of strategy evaluation
Strategic evaluation includes three basic activities.
1. Examining the underlying bases of a firm’s
strategy
2. Comparing expected results with actual
results
3. Taking corrective actions to ensure that
performance confirms to plans.
• Strategy evaluation is essential to ensure
that stated objectives are being achieved
143
What do you think?
.
Too much emphasis on evaluating strategies ?
Too little evaluation ?
• No evaluation ?
144
Reasons why strategy evaluation is more
difficult today
• A dramatic increase in the environment’s
complexity
• The increasing difficulty of predicting the future
with accuracy
• The rapid rate of obsolescence of even the
best plans.
• The increase in the number of both domestic &
world events affecting organizations
145
What should be the solution?
146
The process of evaluating strategies
• Strategy evaluation is necessary for all sizes and kinds of
organization.
• A certain amount of management by wandering around at
all levels is essential to effective strategy evaluation.
• Strategy evaluation should be performed on a continuing
basis, rather than at the end of specified periods.
• If expectations deviate significantly from forecasts, then
the firm should renew strategy formulation activities,
perhaps sooner than planned.
• Through involvement in the process of evaluating
strategies, managers& employees become committed to
keep the firm moving steadily toward achieving objectives.
147
A STRATEGY EVALUATION FRAMEWORK
154
.
Thank you
155