1. STRATEGY REVIEW, EVALUATION AND CONTROL

2. NATURE OF STRATEGY EVALUATION
A vital task for organization’s growth
Three basic activities:
Examining the underlying bases of a firm’s strategy
Comparing actual results with the expected results
Taking corrective actions

3. REMULT’S CRITERIA TO EVALUATE STRATEGY
Consistency: Strategy, policies and goals should be consistent. Organizational conflicts and interdepartmental bickering are the signs of inconsistency
Signs of inconsistency:
a. continuation of managerial, mainly issue based, problems,
b. Success of one department leading to failure of other department
c. Policy problems and issues brought to the top for resolution

4. REMULT’S CRITERIA TO EVALUATE STRATEGY
2. Consonance: It refers to the need for examining set of trends including individual trends in evaluating strategies Are strategies adopted in consonance with the firm’s key internal and external factors? Examining individual trends and their interactions

5. REMULT’S CRITERIA TO EVALUATE STRATEGY
3. Feasibility: Can strategy be attempted within the physical, human, and financial resources of the firm? Strategy should not overtax available resources nor create unsolvable sub-problems

6. REMULT’S CRITERIA TO EVALUATE STRATEGY
4. Advantage: Create and maintain competitive advantage in selected areas of activities. Competitive advantages come from superiority in (a) resources, (b) skills or (c) position

7. PROCESS OF EVALUATING STRATEGIES
A continuous process
Reviewing bases of strategy
EFE Matrix and IFE Matrix provide the base.
Review and Revise the Matrices to incorporate
competitors’ strategies and reaction, their strengths and weaknesses, internal strengths and weaknesses, opportunities and threats etc.

8. PROCESS OF EVALUATING STRATEGIES
2. Measuring Organizational Performance Comparing actual results with the expected results, investigating the deviations from plans, evaluating individual performance, and examining the progress in meeting the objectives Long-term and short-term objectives to be examined

9. PROCESS OF EVALUATING STRATEGIES
Evaluate the performance on both quantitative and qualitative criteria
Compare firm’s performance over different periods.
Compare firm’s performance with those of competitors, and
Compare with the industry average
Use different financial ratios

10. PROCESS OF EVALUATING STRATEGIES
3. Taking Corrective actions To keep firm on track towards achieving objectives To lead changes in strategy formulation and implementation To place organization in a better competitive position To capitalize on strengths and opportunities

11. CHARACTERISTICS OF AN EFFETIVE EVALUATION SYSTEM
1. It must be economical and simple: neither too much nor too less information 2. It must provide timely information. 3. It should provide a true picture of what is happening 4. It should not dominate decisions 5. It should foster mutual understanding, trust, and common sense