1. UNIT 12 STRATEGY EVALUATION AND CONTROL

2. What is it?
Establishing whether a company’s chosen strategy is achieving objectives
Is the company on track?
How is implementation moving?
Problems do happen at implementation stage
Evaluation and control keeps the company on track.

3. Basic Elements of Evaluation and Control
Reviewing external and internal factors which inform the present strategy
Measuring performance
Undertaking corrective action

4. Importance of Evaluation and Control
Confirms that what is being done is in accordance to the plan (link to plan)
Confirms that results are in line with objectives (are we achieving what we intended?)
Helps improve performance (measuring employee performance)
Provides the link between the strategic plan and the day-to-day operations of the company

5. Types of Controls
Strategic Control
Operational (Management Control)

6. Strategic Control
Intended to steer a company towards its long-term direction
Linked to the external environment
Planning premises
Industry conditions
Competitor developments
Market shits, etc.
Sets the basis for operational control

7. Operational Control Tracking progress towards operational objectives
Evaluation of operational performance
Establishing targets
Measuring performance
Identifying deviations
Taking corrective action

8. The Balanced Scorecard
Integrating strategic and operational controls
A management system that guides companies to clarify their strategies and implement them
Linking the strategic plan to all areas of a company
Linking strategy to operations