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Cbmec Reporting Script

This document provides information on evaluation and control as the last stage of strategic management. It defines strategic evaluation as determining if strategic choices are meeting objectives, and strategic control as tracking and adjusting strategy implementation. The key points are: 1. Evaluation and control ensures companies accomplish goals by comparing performance to standards and providing feedback for corrective action. 2. The process involves determining what to measure, establishing performance standards, measuring actual performance, comparing to standards, and taking corrective action if needed. 3. Examples of performance metrics include productivity, profit margin, scope, and cost. Steering controls like inventory turnover predict likely profitability.

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ARLENE GARCIA
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26 views

Cbmec Reporting Script

This document provides information on evaluation and control as the last stage of strategic management. It defines strategic evaluation as determining if strategic choices are meeting objectives, and strategic control as tracking and adjusting strategy implementation. The key points are: 1. Evaluation and control ensures companies accomplish goals by comparing performance to standards and providing feedback for corrective action. 2. The process involves determining what to measure, establishing performance standards, measuring actual performance, comparing to standards, and taking corrective action if needed. 3. Examples of performance metrics include productivity, profit margin, scope, and cost. Steering controls like inventory turnover predict likely profitability.

Uploaded by

ARLENE GARCIA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CBMEC REPORTING SCRIPT

1 (EVALUATION AND CONTROL) -Good morning everyone we are the last reporter
and we are down to the last chapter of strategic
management which is the evaluation and control.
After the phase of formulating and implementing
the strategies of the business, evaluation and
control takes place. So for us to have a brief
information of what our topic is all about, let us
define what is evaluation and what is control.
Strategic evaluation- is the stage of the strategic
management process in which top executives
determine whether their strategic choice, as
implemented, is meeting the enterprise's
objectives.
Strategic control-is concerned with tracking the
strategy as it is being implemented, detecting any
problem areas or potential problem areas, and
making any necessary adjustments.
Strategic evaluation and control- is the process
of determining the effectiveness of a given
strategy in achieving the organizational objectives
and taking corrective actions whenever required.
Why evaluation and control important in
strategic management?
-The evaluation and control process ensures
that the company accomplishes what it set out to
do It compares performance to desired results
and provides the feedback required for
management to evaluate results and, if
necessary, take corrective action.
2 (LEARNING OBJECTIVES) READ ONLEYYY
3 (EVALUATION AND CONTROL PROCESS) 1.) Determine what to measure:
- Top management and operational
management must specify how
implementation processes and outcomes
will be monitored and evaluated.
- Processes and outcomes must be
measurable in a reasonably objective and
consistent manner.
- The emphasis should be on the most
important elements of a process—those
that account for the greatest proportion
of expense or the greatest number of
problems.
- Measurements, regardless of difficulty,
must be found for all important areas.
2.) Establish standards of performance:
- Performance standards are detailed
expressions of strategic objectives. They
are indicators of acceptable performance
outcomes.
Typically, each standard includes a
tolerance range that defines acceptable
deviations.
We should remember that the standards
can be established not only for the final
product, but also for the intermediate
stages of production output.
3.) Measure actual performance:
- Measurements must be taken at
appropriate dates.
4.) Compare actual performance with
the standard:
- The measurement process ends here if
the actual performance results are within
the desired tolerance range.
5.) Take corrective action.
- If the actual outcomes fall outside of the
desired tolerance range, corrective action
must be taken.

4 (MEASURING PERFORMANCE) Performance- The firm ’s ability to make the best


use of the resources it manages in its business
operations.
- Productivity, profit margin, scope and cost
(assess whether the cost outweigh the benefits)
are some examples of performance metrics that a
business can track to determine if target
objectives and goals are being met.
5 (APPROPRIATE MEASURES) -Most measures that is being used by the
business in evaluating its ability to achieve a
profitability objective are ROI and EPS. But these
measures are insufficient for evaluating
additional corporate objectives such as social
responsibility(compliance with the laws, social
and ethical behavior of the business) and
employee development. That is why the business
needs to develop measures that predict likely
profitability. These refers to steering controls. It
is a controls that monitor or measure the factors
(market trends, what is most prefer by the
markets? The customers tends to choose low
cost product to save money) influencing
performance that should be emphasized so that
problems can be identified ahead of time.
- An example of a steering control used by retail
stores is the inventory turnover ratio. This metric
demonstrates how hard an inventory investment
is working; the higher the ratio, the better. It also
reduces the likelihood that the goods will
become obsolete before they are sold.
- Customer satisfaction-Customers who are
pleased with your products and services are your
most ardent supporters. Their positive word-of-
mouth gives your brand credibility, popularity,
and helps in the acquisition of new customers.
This saves brands a significant amount of money
that they would otherwise spend on marketing
and promotional campaigns to acquire new
customers.
SLIDES

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