1. PART 8: Strategy Review, Evaluation, & Control

2. Main Learning Objectives: •
Main Learning Objectives: • Explain various strategy implementation tools. • Discuss procedures for determining worth of business. • Describe how to evaluate strategy implementation alternatives.

3. Strategy Review, Evaluation, & Control
-- Strategies become obsolete
-- Internal environments are dynamic
-- External environments are dynamic

4. Strategy Review, Evaluation, & Control
Strategy Evaluation
Vital to the organization’s well-being
Alert management to potential/actual problems in a timely fashion
Erroneous strategic decisions can have severe negative impact on organizations
Erroneous خاطى

5. Strategy Review, Evaluation, & Control
3 Basic Activities
Examine the underlying bases of a firm’s strategy
Compare expected to actual results
Identify corrective actions to ensure that performance conforms to plans
Underlying أساسي

6. Strategy Review, Evaluation, & Control
Strategy Evaluation
Complex & sensitive undertaking
Overemphasis can be costly & counterproductive

7. Strategy Review, Evaluation, & Control
Appraisal of Strategic Performance
Have assets increased
Increase in profitability
Increase in sales
Increase in productivity
Profit margins, ROI, & EPS ratios increased
ROI = Return On Investment
EPS = Earnings Before Interest & Taxes
Appraisal تقييم, تخمين

8. Strategy Review, Evaluation, & Control
Consistency
Rumelt’s 4 Criteria
Consonance
Feasibility
Consonance تناغم, انسجام
Feasibility جدوى
Advantage

9. Strategy Review, Evaluation, & Control
Consistency
Strategy should not present inconsistent goals & policies
Consistency اتساق

10. Strategy Review, Evaluation, & Control
Consistency
Rumelt’s 4 Criteria
Consonance
Feasibility
Advantage

11. Strategy Review, Evaluation, & Control
Consonance
Need for strategies to examine sets of trends
Consonance تناغم, انسجام

12. Strategy Review, Evaluation, & Control
Consistency
Rumelt’s 4 Criteria
Consonance
Feasibility
Advantage

13. Strategy Review, Evaluation, & Control
Feasibility
Neither overtax resources or create unsolvable sub-problems
Overtax يرهقه بالضرائب

14. Strategy Review, Evaluation, & Control
Consistency
Rumelt’s 4 Criteria
Consonance
Feasibility
Advantage

15. Strategy Review, Evaluation, & Control
Advantage
Creation or maintenance of competitive advantage

16. Strategy Review, Evaluation, & Control
Difficulties in Strategy Evaluation
Increase in environment’s complexity
Difficulty predicting future with accuracy
Increasing number of variables

17. Strategy Review, Evaluation, & Control
Difficulties in Strategy Evaluation
Rate of obsolescence of plans
Domestic and global events
Decreasing time span for planning certainty

18. Strategy Review, Evaluation, & Control
Strategy Evaluation Should --
Initiate managerial questioning
Trigger review of objectives & values
Stimulate creativity in generating alternatives
Trigger ينبه
Stimulate يحث

19. Strategy Review, Evaluation, & Control
Review of Underlying Bases of Strategy could be approached by --
Develop revised EFE Matrix
Develop revised IFE Matrix

20. Strategy Review, Evaluation, & Control
Review Effectiveness of Strategy --
Competitors’ reaction to strategy
Competitors’ change in strategy
Competitors’ changes in strengths & weaknesses
Reasons for competitors’ strategic change

21. Strategy Review, Evaluation, & Control
Review Effectiveness of Strategy --
Reasons for competitors’ successful strategies
Competitors’ present market positions & profitability
Potential for competitor retaliation
Potential for cooperation with competitors
Potential امكانية

22. A Strategy-Evaluation Assessment Matrix
1. Summarizes strategy evaluation activities in terms of key questions that should be addressed.
(For example the 8 key questions mentioned earlier).
2. Alternative answers to those questions ,
and appropriate actions for an
organization to take.

23. Summarizes strategy evaluation activities in terms of key questions that should be addressed
Alternative answers to those questions , and appropriate actions for an organization to take
Notice that corrective actions are almost needed except when
External and internal factors have not significantly changed, and
The firm is progressing satisfactorily towards achieving stated objectives.

24. A Strategy-Evaluation Assessment Matrix
3. Notice that corrective actions are almost
needed except when:
External and internal factors have not significantly changed, and
The firm is progressing satisfactorily towards achieving stated objectives.
The Strategy-Evaluation Framework is shown in the following figure

25. II. Measure Firm Performance
I. Review Underlying Bases
Evaluation Framework
III.
Take
Corrective
Actions
Yes
Differences? NO
II. Measure Firm Performance
Yes
Differences?
Activity 1: - Review Underlying Bases
Prepare Revised IFE and EFE Matrices
Compare Revised IFE and EFE Matrices with Existing Ones
If significant differences occur (YES) then take corrective action
If no significant differences occur (NO) then go to Activity 2
Activity 2: Measure Firm’s Performance
Compare planned to actual progress towards meeting stated objectives
If significant differences occur (Yes) then take corrective action
If No significant differences occur t(No) then continue present strategic course NO
Continue present course

26. Strategy Review, Evaluation, & 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