Module V

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Operational control
• Operational control consist of setting standards, measuring
performance, analysing variances and taking corrective action.

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Other motives for strategic evaluation
1. Need for feedback, appraisal and reward
2. Check on the validity of strategic choice
3. Successful culmination of the strategic management process
4. Congruence between decisions and intended strategy
5. Creating inputs for new strategic planning

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• Feedforward-before action
• Feedback control-after
• Premise control-anticipated environment, future(favourable govt.
policies, changing nature of competition)
• Implementation control-time
• Special alert control-technologies, sudden event, eg. Increasing price
of petrol.
• Strategic surveillance-General monitoring of surrounding

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 Techniques of strategic evaluation and
control
(Azhar Kazmi-502)
• Evaluation techniques for strategic control:
Strategic momentum control
1. Responsibility control centres-core of management control system (revenue, expense, profit and
investment centers)
2. The underlying success factors-to focus on the critical success factors
3. Generic strategies-comparison
Strategic leap control
4. Strategic issue management-is aimed at identifying one or more strategic issues and assessing their
impact on the organisation
5. Strategic field analysis-is a way of examining the nature and extent of synergies that exist
6. Systems modelling- is based on computer based models that stimulate the essential features of the
organisation and its environment.
7. Scenarios-are perceptions about the likely environment a firm could face in the future.

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Evaluation techniques for operational control
• Internal analysis, Comparative analysis and comprehensive analysis

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Evaluation techniques for operational control
• The internal analysis consists of the VRIO framework, value chain
analysis, quantitative analysis and qualitative analysis, deals with the
identification of the strengths and weaknesses of a firm in absolute
terms.

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Internal Analysis
• VRIO-valuable, rare, inimitable and organised for usage
• Value chain analysis-inter related activities performed in a sequence, for
producing and marketing a product or service. Segregate the total task
• Quantitative analysis-either financial and non-financial parameters.
Apart from the financial quantitative techniques, there are several non-
financial quantitative techniques such as computation of absenteeism,
market ranking, rate of advertising recall, total cycle time of production,
service call rate or number of patents registered per period, available for
evaluation for operational control
• Qualitative analysis-based on intuition, judgement and informed opinion
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Comparative analysis
1. Historical analysis-comparing performance of a firm over a given
period of time
2. Industry norms-comparative method for analysing performance that
brings with it the advantage of making a firm competitive in
comparison to its rivals in the same industry.
3. Benchmarking-is a comparative method where a firm finds the best
practices in an area and then attempts to bring its own performance
in that area in line with the best practice.

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Comprehensive Analysis
• The key factors in several areas and then sets out to evaluate
performance on the basis of these.
• Business intelligence systems-is one of the concepts used for
discovering knowledge from various internal and external data
repositories available to an organisation, to support effective decision-
making
• The balanced scorecard-customer perspective, internal business
perspective, innovation and learning perspective and the financial
perspective.

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Special purpose techniques
• Network techniques
• MBO
• Memorandum of understanding
• Evaluation studies in NGO

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