2. STRATEGIC CONTOL
Strategic controls are intended to steer the company towards its
long-term strategic direction. After a strategy is selected, it is
implemented over time so as to guide a firm within a rapidly
changing environment. Strategies are forward-looking, and based
on management assumptions about numerous events that have
not yet occurred.
The purpose of strategic control is to identify whether the
organization should continue with its present strategy or modify
it is the light of changed circumstances.
3. TYPES STRATEGIC CONTOL
1. Premise Control
2. Implementation Control
3. Strategic Surveillance
4. Special Alert Control
4. CONTROL PROCESS
• The control process of management ensures that
every activity of a business is furthering its goals. This
process basically helps managers in evaluating their
organization’s performance. By using it effectively,
they can decide whether to change their plans or
continue with them as they are.
6. CONTROL PROCESS
Establishment of Standards
• Standards are, by definition, simply the criteria of performance.
• In an industrial enterprise, standards could include sales and
production targets, work attendance goals, safety records, etc.
• In service industries, on the other hand, standards might include
several time customers have to wait in the queue at a bank or the
number of new clients attracted by a revamped advertising
campaign.
7. CONTROL PROCESS
Measurement of Performance
• The measurement of performance against standards should be
done on a forward-looking basis so that deviations may be
detected in advance of their occurrence and avoided by
appropriate actions.
• If standards are appropriately drawn and if means are available
for determining exactly what subordinates are doing, appraisal
of actual or expected performance is fairly easy.
8. CONTROL PROCESS
Compare Performance
• It involves comparing the measured results with the standards
already set.
• If performance matches the standard, managers may assume
that “everything is under control”. In such a case the managers
do not have to intervene in the organization’s operations.
9. CONTROL PROCESS
Taking Corrective Actions
• This step becomes essential if performance falls short of
standards and the analysis indicates that corrective action is
required. The corrective action could involve a change in one
or more activities of the organization’s operations.
• Control can also reveal inappropriate standards and in that
case, the corrective action could involve a change in the
original standards rather than a change in performance.
11. TECHNIQUES OF STRATEGIC EVALUATION AND CONTOL
GAP Analysis
• A gap analysis process allows organizations to determine how
to best achieve their business goals. It compares the current
state with an ideal state or goals, which highlights
shortcomings and opportunities for improvement.
Steps:
1. Analyze your Current State
2. Identify the Ideal Future State
3. Find the Gap and Evaluate Solution
4. Create and Implement a plan to bridge the Gap
12. TECHNIQUES OF STRATEGIC EVALUATION AND CONTOL
SWOT Analysis
• A SWOT analysis is a compilation of your company's strengths,
weaknesses, opportunities and threats.
• The primary objective of a SWOT analysis is to help organizations
develop a full awareness of all the factors involved in making a
business decision.
• Use your SWOT analysis to discover recommendations and
strategies, with a focus on leveraging strengths and opportunities to
overcome weaknesses and threats.
13. TECHNIQUES OF STRATEGIC EVALUATION AND CONTOL
PEST/PESTLE/PESTEL Analysis
• The analysis involves reviewing factors which will have an
impact on the organization's business and the level of success
it will be able to achieve and may be carried out as part of an
ongoing process of environmental scanning, to inform overall
strategy development or to support the development of a new
product or service.
14. ACTION CHECKLIST for PEST Analysis
1. Identify the most important issues.
2. Decide how the information is to be collected
and by whom.
3. Identify sources of information.
4. Gather the information.
5. Analyze the findings
6. Identify strategic options.
7. Write a report
8. Disseminate your findings
9. Decide which trends should be monitored on
an ongoing basis.
15. TECHNIQUES OF STRATEGIC EVALUATION AND CONTOL
Benchmarking
• In business, benchmarking is a process used to measure the
quality and performance of your company’s products, services,
and processes. These measurements don’t have much value
on their own—that data needs to be compared against some
sort of standard.
Types of Benchmarking
1. Internal Benchmarking
2. Competitive Benchmarking
3. Strategic Benchmarking
16. Steps of the Benchmarking Process
1. Select a subject to benchmark
2. Decide which organizations or companies you
want to benchmark
3. Document your current processes
4. Collect and analyze data
5. Measure your performance against the data
you’ve collected
6. Create a plan
7. Implement the changes
8. Repeat the process