Scribd
Upload
179 views

Unit 10 - STM

This document discusses issues related to strategic management and strategy evaluation. It addresses topics such as the pros and cons of continuously evaluating strategies, when an organization's vision/mission should be changed, why strategy evaluation has become important, and tools for strategy evaluation such as the balanced scorecard. The balanced scorecard allows firms to evaluate strategies from financial, customer, internal business process, and learning and growth perspectives in order to recognize and improve activities and external effects. Strategic management involves both top-down and bottom-up processes and is both an art and a science that shapes an organization's future through proactive evaluation.

Uploaded by

christine tabanao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
179 views

Unit 10 - STM

This document discusses issues related to strategic management and strategy evaluation. It addresses topics such as the pros and cons of continuously evaluating strategies, when an organization's vision/mission should be changed, why strategy evaluation has become important, and tools for strategy evaluation such as the balanced scorecard. The balanced scorecard allows firms to evaluate strategies from financial, customer, internal business process, and learning and growth perspectives in order to recognize and improve activities and external effects. Strategic management involves both top-down and bottom-up processes and is both an art and a science that shapes an organization's future through proactive evaluation.

Uploaded by

christine tabanao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

BA 300- STRATEGIC MANAGEMENT

Issues for Review and Discussion

1. Evaluating strategies on a continuous rather than a periodic basis is desired. Discuss the pros
and cons of this statement.

The pros of evaluating strategies on a continuous manner are:


 If strategies are not operating effectively, it can be easily changed before it’s too late.
 It boosts competitive advantages because strategies are updated real time.
 Firms become more aware of their strengths and weaknesses.

On the other hand, disadvantages may rise as listed below:

 Put too much pressure on the employees and manager resulting in low performance
outcome.
 Evaluating strategies requires a lot of money and effort.
 If strategies are frequently examined, firms might make unnecessary adjustments that
will result in an unfavorable outcome to the business/ organization.
2. How often should an organization’s vision/mission be changed in light of strategy evaluation
activities?
 Organizations should make a routine of evaluating the mission statement every one
to three years, especially during times of considerable shift for the organization. This
does not necessarily imply that you must change it frequently, but a change should
be considered.
3. Why has strategy evaluation become so important in business today?
 Because it makes you aware of your business’s status and allows you to change
strategies if it’s not effective working to ensure success.
4. As owner of a local, independent supermarket, explain how you would evaluate the firm’s
strategy.
 Strategy evaluation in small business like local supermarket is quite different from
large organization but of course taking into account the internal and external factors
surrounding your business is one way of knowing how to improve your business to
meet its goals and objectives.
5. Under what conditions are corrective actions not required in the strategy-evaluation
process?
 Corrective actions are only not needed in strategy evaluation when there have been
no significant changes to the firm's internal or external strategic position and the
firm is making satisfactory progress toward reaching its stated goals.
6. Identify types of organizations that may need to evaluate strategy more frequently than
others. Justify your choices.
 Any large organization, because these types of organization that many divisions that
need coordination to carry out their work. To ensure efficient performance I think
these types of organization need extensive strategy evaluation structure.

7. Strategy evaluation allows an organization to take a proactive stance toward shaping its own
future. Discuss the meaning of this statement.
 Strategy evaluation allows an organization to take a proactive stance toward
shaping its future because it assesses a plan's viability, considers stated goals and
objectives, and aims to keep a competitive advantage.
8. Explain and discuss the Balanced Scorecard.
 The Balanced Scorecard is an important strategy-evaluation tool. It is a process that
allows firms to evaluate strategies from four perspectives: financial performance,
customer knowledge, internal business processes, and learning and growth. By this,
we can recognize and improve different internal company activities and the external
effects that result from them.
9. Why is the Balanced Scorecard an important topic both in devising objectives and in
evaluating strategies?
 It is important because it allows us to measure and offers feedback, which can be
used by company personnel to make better decisions for the future of their
organizations.
10. Develop a Balanced Scorecard for a local fast-food restaurant.

Area of Objective Measure Time Expectation Primary Responsibilty


Customer Percent of sales of Present up to Responsible customer
1. New Products new products coming years
Financial
1. Prosperity Increase in ROE Present to coming
years
Internal business prospective Product innovation
1. New product introduction Increase in sales Present to coming
years
Innovation and learning perspective New product Present to coming Introduction of new products
1. Time to market introduction vs. years
competition

11. Do you believe strategic management should be more visible or hidden as a process in a firm?
Explain.

 Things like this should always be visible to increase participation inside the firm and
avoid misunderstanding to ensure transparent and efficient management system.

12. Do you feel strategic management should be more a top-down or bottom-up process in a firm?
Explain.

 Both approach has pros and cons so I think if would be better for an organization to
use both in points of the organizational journey to ensure involvement of
employees and those in the higher position.

13. Do you believe strategic management is more an art or a science? Explain.

 Strategic management requires formulating and implementing strategies needed to


the success of an organization, so I believe it is both an art and science.

You might also like