STRATEGIC EVALUATION AND CONTROL

STRATEGIC CONTROL

VISION, MISSION STATEMENT EXTERNAL APPRAISAL

INTERNAL APPRAISAL

ESTABLISH LONGTERM OBJECTIVE

EVALUATE, SELECT STRATEGIES

STRATEGIC ANALYSIS & CHOICE

STRATEGY IMPLEMENTATION

STRATEGIC CONTROL

Management Control Process

Stages of Control

Feed forward Control: Monitors inputs. Careful analysis of planning Concurrent Control: Quality Control Safety Check Feedback control: Personal characteristics of individual through feedback.

Evaluating Marketing Issues in Strategic Implementation. Evaluating Finance and Accounting issues in Strategic Implementation. Evaluating Research and Development Issues in Strategic Implementation. Evaluating the Importance of Information systems in Implementing Strategy.

 Evaluating Marketing Issues in Strategic Implementation. Market Segmentation Market Positioning Evaluating Finance and Accounting issues in Strategic Implementation. Obtaining Assets for Implementation. Financial Budget. Evaluating Research and Implementation. Highlighting Improvements. Development Issues in Strategic

Evaluating the Importance of Information systems in Implementing Strategy.

STRATEGIC CONTROL Strategic control is a tool that allows managers whether or not their selected strategies are working as intended.

Establish Standards & Targets Create Measuring & Monitoring System Compare Actual Performance Initiate Corrective action

STRATEGIC CONTROL Strategic control can be classified into four categories: 1. Premise Control : Specific assumptions related to the environmental and organizational factors that provide the basis for every strategy. 2. Implementation Control : Rethinking about the plans and projects which would not benefit the organisation. 3. Strategic Surveillance : Extensive Monitoring on the selected information sources. 4. Special Alert Control : Early discovery of the critical situations.

OPERATIONAL CONTROL Operational control aims at allocating and using organization's resources to evaluate the performance of organizational units, such as divisions and SBUs Implementation Operational Control :

Setting the Objective

Setting Standards of Performance

Compare Actual Performance

Measurement of Performance

Analysing Variance

ORGANISATIONAL SYSTEMS Organizational System is a combine form of different units and positions that help achieve organizational objectives in a coordinated manner. Informational system Control System Appraisal System Motivation System Development System Planning System

Informational system: Records and Stores accounting records. Provides financial Statements Processes the operations records. Records and stores for human resource. Records and stores business intelligence data that includes competitor analysis. Processes the strategic management records into industry trends reports

CONTROL SYSTEM:

Establish Standards & Targets Create Measuring & Monitoring System Compare Actual Performance Initiate Corrective action

APPRAISAL SYSTEM: Management By Objective Evaluated closely and the appraiser should be in close contact with the person whose performance is to be evaluated.

MOTIVATION SYSTEM It is a behaviour management system that provides positive approach for supporting positive behaviour and correcting problem behaviours. Motivation for Positive support Motivation for effective discipline and punishment Motivation for setting task related goals Motivation for satisfying employees needs Motivation for Job Performance

PROCESS OF STRATEGIC CONTROL Step 1: Key Areas to be Monitored Macro environment Strategic Monitoring and Control Includes Industry Environment Internal Operations

PROCESS OF STRATEGIC CONTROL Step 2: Establishing Standards: standards include Quality of products Quantity of products to be produced Quality of management Long term investment Ability to attract, develop and retain competent and skilled people. Market place performance Volume of sales

PROCESS OF STRATEGIC CONTROL Step 3: Measuring Performance Strategic Audit Strategic Audit Measurement Methods (Qualitative Methods and Quantitative Methods) Quantitative Organizational measurements: ROI, Weighted performance, Stakeholders Audit

PROCESS OF STRATEGIC CONTROL Step 4: Compare Performance with Standards Profitability Standards: gross profit, net profit, ROI, EPS Market Position Standards Productivity Standards Product Leadership Standards Human Resource Standards Employee Attitude Standards Social Responsibility Standards Standards Reflecting Balance between Short-range and Long-range Goals

PROCESS OF STRATEGIC CONTROL Step 5: Take No Action if performance is in Harmony with Standards: If the performance match with the standards, the strategist need not take any action. He should just allow the process to continue.

PROCESS OF STRATEGIC CONTROL Step 6: Take Corrective Action, If necessary: Causes of deviation Corrective Action