bus490_w10_ch9

bus490_w10_ch9 - BUS 490 Week 10: Strategy Review,...

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Slide # Topic Narration Slide 1 Intro Welcome to Business Policy. This lesson will focus on strategy review, evaluation, and control. Please go to slide # 2 Slide 2 Objectives Upon completion of this lesson you will be able to: Describe a practical framework for evaluating strategies; Explain why strategy evaluation is complex, sensitive, and yet essential for organizational success; Explain the importance of contingency planning in strategy evaluation; Explain the role of auditing in strategy evaluation; Describe the use of the Balanced Scorecard as a strategy evaluation tool; and Outline the three twenty-first century challenges in strategic management. Please go to slide # 3 Slide 3 Overview It is essential that strategists systematically review, evaluate, and control the execution of strategies. This lesson presents a framework that can guide managers’ efforts to evaluate strategic-management activities, to make sure they are working, and to make timely changes. We will also look at guidelines for formulating, implementing, and evaluating strategies. Please go to slide # 4 Slide 4 The Nature of Strategy Evaluation The strategic-management process results in decisions that can have significant, long-lasting consequences. As a result, most strategists agree that strategy evaluation is vital to an organization’s well-being. Strategy evaluation includes three basic activities: Examining the underlying bases of a firm’s strategy; Comparing expected results with actual results; and Taking corrective actions to ensure that performance conforms to plans. It is impossible to demonstrate conclusively that a particular strategy is optimal or even to guarantee that it will work. However, it can be evaluated for critical flaws. Richard Rumelt offered four criteria that could be used to evaluate a strategy: consistency, consonance, feasibility, and advantage.
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Regardless of the size of the organization, a certain amount of management at all levels is essential to effective strategy evaluation. Strategy-evaluation activities should be performed on a continuing basis, rather than at the end of specified periods of time or just after problems occur. Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored. Please go to slide # 5 Slide 5 A Strategy- Evaluation Framework Recall that strategy evaluation includes three basic activities: examining the underlying bases of a firm’s strategy, comparing expected results with actual results, and taking corrective actions to ensure that performance conforms to plans. Let’s take a closer look at each of these. Reviewing the underlying bases of an organization’s strategy could be
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bus490_w10_ch9 - BUS 490 Week 10: Strategy Review,...

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