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Topic 9 - Strategy Monitoring

The document outlines the objectives and nature of strategy evaluation, emphasizing the importance of reviewing organizational strategies, measuring performance, and taking corrective actions. It introduces the balanced scorecard as a tool to balance financial and non-financial measures in strategy evaluation. Additionally, it discusses the characteristics of an effective evaluation system and the importance of contingency planning for unforeseen circumstances.

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Zein Hshs
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13 views

Topic 9 - Strategy Monitoring

The document outlines the objectives and nature of strategy evaluation, emphasizing the importance of reviewing organizational strategies, measuring performance, and taking corrective actions. It introduces the balanced scorecard as a tool to balance financial and non-financial measures in strategy evaluation. Additionally, it discusses the characteristics of an effective evaluation system and the importance of contingency planning for unforeseen circumstances.

Uploaded by

Zein Hshs
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Strategy Monitoring

(Review, Evaluation, and


Control)
CENTRAL LUZON STATE
College of Business Administration and
Department UNIVERSITY
ofAccountancy
Business Administration
OBJECTIVES

 Describe the nature of strategy evaluation


 Understand the strategy evaluation framework
 Explain the balanced scorecard
NATURE OF
STRATEGY
EVALUATION
Reviewing Basis of
Strategies

Reviewing the underlying bases of an organization’s strategy


could be approached by developing a revised EFE Matrix and IFE
Matrix.
Measuring Organizational
Performance

This activity includes comparing expected results to


actual results, investigating deviations from
plans, evaluating individual performance, and examining
progress being made toward meeting
stated objectives.
Taking Corrective Actions

The final activity requires making changes to competitively


reposition a firm for the future.
Balanced Scorecard

Derives its name from the perceived need of firms to


“balance” financial measures that are oftentimes used
exclusively in strategy evaluation and control with
nonfinancial measures such as product quality and customer
service.
Characteristics of an Effective
Evaluation System

 Strategy evaluation activities must be economical


 Strategy-evaluation activities also should be meaningful
 Strategy-evaluation activities should provide timely
information
 Strategy evaluation should be designed to provide a true
picture of what is happening
 strategy-evaluation process should not dominate
decisions
 Strategy evaluations should be simple
Contingency Planning

 If a major competitor withdraws from particular markets


as intelligence reports indicate, what actions should our
firm take?
 If our sales objectives are not reached, what actions
should our firm take to avoid profit losses?
 If demand for our new product exceeds plans, what
actions should our firm take to meet the higher demand?
Contingency Planning

 If certain disasters occur—such as loss of computer


capabilities; a hostile takeover attempt; loss of patent
protection; or destruction of manufacturing facilities
because of earthquakes, tornadoes or hurricanes—what
actions should our firm take?
 If a new technological advancement makes our new
product obsolete sooner than expected, what actions
should our firm take?
Strategy Monitoring
(Review, Evaluation, and
Control)
CENTRAL LUZON STATE
College of Business Administration and
Department UNIVERSITY
ofAccountancy
Business Administration

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