1. Ch 11 -1 Copyright © 2011 Pearson Education

2. Strategic Management: Concepts and Cases Arab World Edition Fred R. David Abbas J. Ali Abdulrahman Y. Al-Aali Chapter 11: Strategy Review, Evaluation and Control Ch 11 -2 Copyright © 2011 Pearson Education

3. Ch 11 -3Copyright © 2011 Pearson Education Source: Adapted from Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988) 40.

4. 1.Examine the underlying bases of a firm’s strategy. 2.Compare expected to actual results. 3.Identify corrective actions to ensure that performance conforms to plans. Strategy Review, Evaluation, and Control Three Basic Activities Ch 11 -4Copyright © 2011 Pearson Education

5. Strategy Review, Evaluation, and Control Obstacles of Strategy Evaluation in Arab World 1.Over-optimistic and overconfidence of CEOs 2.Team responsibilities 3.Lack of familiarity 4.Lack of integrating IT systems 5.Absence of objective data 6.Absence of effective trend monitoring system 7.Lack of effective alert system Ch 11 -5Copyright © 2011 Pearson Education

6. A Strategy-Evaluation Framework Review of Underlying Bases of Strategy Develop revised EFE Matrix Develop revised IFE Matrix Ch 11 -6Copyright © 2011 Pearson Education

7. Strategy Review, Evaluation, and Control Review Effectiveness of Strategy 1.Competitors’ reaction to strategy 2.Competitors’ change in strategy 3.Competitors’ changes in strengths & weaknesses 4.Reasons for competitors’ strategic change Ch 11 -7Copyright © 2011 Pearson Education

8. Strategy Review, Evaluation, and Control Review Effectiveness of Strategy (cont’d) 1.Reasons for competitors’ successful strategies 2.Competitors’ present market positions & profitability 3.Potential for competitor retaliation 4.Potential for cooperation with competitors Ch 11 -8Copyright © 2011 Pearson Education

9. Strategy Review, Evaluation, and Control Monitor Strengths & Weaknesses; Opportunities & Threats Are strengths still strengths? Have we added additional strengths? Are weaknesses still weaknesses? Have we developed other weaknesses? Ch 11 -9Copyright © 2011 Pearson Education

10. Strategy Review, Evaluation, and Control Monitor Strengths & Weaknesses; Opportunities & Threats (cont’d) Are opportunities still opportunities? Other opportunities develop? Are threats still threats? Other threats emerged? Are we vulnerable to hostile takeover? Ch 11 -10Copyright © 2011 Pearson Education

11. Ch 6 -11 Ch 11 -11Copyright © 2011 Pearson Education

12. Measuring Organizational Performance  Compare expected to actual results  Investigate deviations from plan  Evaluate individual performance  Examine progress toward stated objectives

13. Strategy Review, Evaluation, and Control Making changes to competitively reposition a firm for the future Keeping organization on track toward achieving stated objectives Ex: structure, individuals, policies, resource allocation, performance to pay. Taking Corrective Actions Ch 11 -13Copyright © 2011 Pearson Education

14. Strategy Review, Evaluation, and Control Balanced Scorecard Ch 11 -14Copyright © 2011 Pearson Education Evaluate strategies from 4 perspectives: 1.Financial performance 2.Customer knowledge 3.Internal business processes 4.Learning & growth

15. Ch 6 -15 Ch 11 -15Copyright © 2011 Pearson Education

16. Ch 6 -16 Ch 11 -16Copyright © 2011 Pearson Education

17. Ch 6 -17 Ch 11 -17Copyright © 2011 Pearson Education

18. Strategy Review, Evaluation, and Control Characteristics of Strategy Evaluation Economical Meaningful Generates useful information Timely information Provides accurate picture of events Action-oriented Ch 11 -18Copyright © 2011 Pearson Education

19. Strategy-Evaluation Assessment Matrix Continue courseYesNo Corrective actionsNoYesNo Corrective actionsYes No Corrective actionsNo Yes Corrective actionsYesNoYes Corrective actionsNoYes Corrective actionsYes Corrective actionsNo Result Has the firm progressed satisfactorily toward achieving its stated objectives? Have major changes occurred in the firm’s external strategic position? Have major changes occurred in the firm’s internal strategic position? Ch 11 -19Copyright © 2011 Pearson Education

20. Strategy Review, Evaluation, and Control Ch 11 -20Copyright © 2011 Pearson Education Contingency Planning: Alternative plans that can be put into effect if certain key events do not occur as expected

21. Strategy Review, Evaluation, and Control Financial audits determine correspondence between assertions based on strategic plan & established criteria Environmental audits ensure sound and safe practices Auditing: Ch 11 -21Copyright © 2011 Pearson Education

22. Strategy Review, Evaluation, and Control 21st Century Challenges in Strategic Management Process is more an “art” than “science” Should strategies be visible or hidden from stakeholders? Should process be more top-down or bottom-up? Ch 11 -22Copyright © 2011 Pearson Education

23. This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 11 -23Copyright © 2011 Pearson Education