bg strategic management chapter 7 323

CHAPTER 7 STRATEGY EVALUATION Dept of strategic management 9/16/2022176 http //images google com vn/imgres?imgurl=http //www johnwiley com au/highered/stratmgt2e/0470809299 jpg&imgrefurl=http //www jo[.]

CHAPTER 7 STRATEGY EVALUATION

7.1 Definition, the nature and process of strategy evaluation

7.2 Strategy evaluation framework

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7.1 Definition and nature

 Definition:

“Strategy evaluation allow firms to monitor and evaluate whether, their strategy

and structure are working as intended, how they could be improved, and how they

should be changed if they are not working” (Hill and Jones, 2008)

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(1) Monitoring how well an organization and its members are currently

performing

(2) How well the firm is using its existing resources

(3) How to create he incentives to keep employees motivated and focused on

the important work together and find solutions that

(4) Find solutions that can help an organization perform better over time

7.1.2 Process

7.1.3 Criteria for strategy evaluation

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Criteria for Strategy evaluation

Consistency Strategy should not present inconsistent

goals & policies

Consonance Need for strategies to examine sets of trends

Feasibility Either overtax resources or create

unsolvable sub-problems

Advantage Creation or maintenance of competitive

advantages

7.1 Definition, the nature and process of strategy evaluation

7.2 Strategy evaluation framework

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7.2 Strategy evaluation framework

Strategy evaluation framework

Determine what to measure

Top-level and operational managers need to identify the implementation processes and results that will be monitored and evaluated

Establish of standards Strategists must establish performance targets, standards and tolerant limits

for organizational objectives, strategy and implementation plans Standards can pertain to quality, cost and time

Measure performance Measuring actual performance may involve measurements in qualitative and

quantitative terms and in terms of time and cost Managers may accordingly ask for performance reports from their employees

Performance deviations Actual performance must be objectively compared against predetermined

standards Deviations, if any, must be identified

If the actual performance is within the desired tolerance range, the evaluation is stopped

Take corrective actions If an organization’s actual performance falls outside the desired tolerance

range, corrective action must be taken to correct deviations This may require resetting of goals or objectives or revision of plans, policies and standards Corrective steps must be taken at the right time to achieve organizational objectives

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