Thursday, May 23, 2019

Evaluating Strategic Management Essay

The strategic management process result in ending that can have significant, long lasting consequences. In many organizations, outline evaluation is simply an appraisal of how well an organization has performed. Strategy evaluation includes troika basic activities1. Examining the underlying bases of firm strategy2. equivalence expected result with actual result3. Taking corrective action to ensure that performance adjust to plan.Strategy evaluation is becoming increasingly difficult with the passage of time, for many reasons.domesticAnd world economies were more stable in years past, product life-time cycles were longer, product development cycles were longer, technological advancement was slower, change occurred less frequently, there were fewer competitors, foreign companies were weak, and there were more regulated industries. Other reasons why strategy evaluation is more difficult today include the following trends1. A dramatic increase in the environment s complexity2. The i ncreasing difficultness of predicting the future with true statement3. The increasing number of variables4. The rapid rate of obsolescence of even the best plans5. The increase in the number of both domestic and world events modify organizations6. The decreasing time span for which planning can be done with any degree of certaintyFour Criteria (Richard Rummelt in evaluating strategic management soundboxStrategy should not present inconsistent goals and policies.Conflict and interdepartmental bickering symptomatic of managerial disorder and strategic inconsistency ConsonanceNeed for strategies to ensure sets of trends Adaptive response to external environment Trends are results of interactions among other trends FeasibilityNeither overtax resources or create unsolvable sub problems Organizations must register the abilities, competencies, skills and talents to carry out a given strategy AdvantageCreation or maintenance of competitive advantage Superiority in resources, skills, o r persuasionNowadays, the strategy evaluation is become difficult because adjusting with the trends happened. There are some reasons for it1. Increase in environments complexity2. Difficulty predicting future with accuracy3. Increasing number of variables4. Rate of obsolescence of plans5. Domestic and global events6. Decreasing time span for planning certaintya.Reviewing Bases of Strategy rise up revised EFE Matrix Develop revised IFE MatrixReview effectiveness of strategy is important to evaluate how far these strategy matches with our goals, the way are1. Competitors reaction to strategy2. Competitors change in strategy3. Competitors changes in strengths and weaknesses4. Reasons for competitors strategic change5. Reasons for competitors successful strategies6. Competitors present market positions and profitability7. Potential for competitor retaliation8. Potential for cooperation with competitorsb.Measuring Organizational Performance Comparing expected to actual results Investig ating deviations from plan Evaluating individual performance Progress toward stated objectives

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