This Presentation gives a brief insight into strategic control and types of strategic control along with real time case studies and examples to help the viewer understand the topic of Strategic Control

1. Establishing the
strategic control
24 Oct, 18 Group IX - Section 1 1

2. Strategic Control
24 Oct, 18 Group IX - Section 1
• Strategic control is concerned with tracking a Strategy as
it is being implemented, detecting problems or changes in
its underlying premises, and making necessary adjustments.
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3. Case Study:
Kudankulam Nuclear Power Plant
24 Oct, 18 Group IX - Section 1
• Kudankulam nuclear power plant in Tamil Nadu was
built by the Indian govt. with assistance from the Russian
govt. was affected by the frequent protests
• The agency responsible for implementing the project was
incapable of forecasting this problems such as protests
that could arise in between the construction.
• Thus the agency was unprepared and had no
alternatives to tackle the problem causing losses of
billion of dollars for the project and also slowed the
project down
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4. An ideal control system
Establish standards and
targets
Create measuring and
monitoring systems
Comparing actual
performance against the
established targets
Evaluate results and
take action if necessary

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Case Study : Acsen HyVeg Ltd
Target is to capture
Mysore Veg seed Mkt
For Monitoring appointed field assistant,
area managers to measure mkt share of
competitors in veg seeds
The performance was total Qty of tomato
seeds sold in Mysore is 2T.
Acsen selling 650KgsWhile other competitors
selling at least 1200Kgs
So company’s target is to capture the mkt of
competitors
Evaluation stated that Tomato seeds of
Acsen are suitable for only monsoon so
during summer the customers shift to
other company seeds. So as an Action
Plan Acsen came up with new summer
variety seeds which were given for free
trials thus increasing their mkt share
Intro of Acsen HyVeg,
Rechristened Rasi HyVeg,
is a demerged vegetable
seed division of Rasi
seeds, sprouted in 2009.

6. Monitoring the success of a strategy involves asking
these questions:
24 Oct, 18 Group IX - Section 1
• Are we moving in the proper direction? E.g. Is collection of
data from field assistant & interns helping us to achieve our
strategy
• Are key things falling into place? E.g. Is there proper
distribution of seeds during season on time
• Should we adjust or abort the strategy? E.g. Should summer
variety seeds be continued or not
• Do we need to make operational changes? E.g. Is there a need
to provide seeds along with competitors seeds on a trial basis
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Case Analysis: Acsen HyVeg Seeds

7. Establishing Strategic Controls
24 Oct, 18 Group IX - Section 1
• The control of strategy can be characterized as a form of "steering
control".
• As time lapses between the initial implementation of a strategy and
achievement of its intended result, investments are made and numerous
projects and actions are undertaken to implement the strategy.
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8. Case Study:
Kodak
24 Oct, 18 Group IX - Section 1
• Kodak almost from the top of the industry went to
bankruptcy due to sudden shift of the society from film
to digital imaging.
• Also 9/11 attacks brought down the travel market
• Company endured massive layoffs and did high
investment in digital research to turn the situation
• Kodak could have adjusted their strategies and actions
when technology changed everything for them
• They could have established better Strategic Control to
reduce the impact that they felt
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9. Premise control
Implementation control
Strategic
surveillance
Special
Alert
control
Types of strategic control

10. Premise control
 Inflation
 Socialchanges
 Technology
 Competitors
 Suppliers
 Barriers to Entry
Premise control is designed to check systematically & continuously whether
the premises in which the strategy is based are still valid. If a Premise no
longer valid Strategy has to be Changed
E.g. many software companies postponing the joining dates of new recruits
during slowdowns.
Environmental factor Industry factor

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Environmental Factors
Case Study – Taj Mahal
• All the polluting industries in the vicinity of Taj Mahal at Agra were asked to use
cleaner fuel like natural gas.
• Some of the more polluting industries like tannery were asked to shift their base.
Environmental factors exercise considerable influence over the success of a firm's strategy
as strategies usually are based on key premises about them

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The performance of the firms in a given industry is affected by industry factors.
Case Study: Rubbermaid
• Rubbermaid is American based manufacturer of plastic house wares and toys.
• Its Premise was retail chains would prefer their products due to core competency
• The Premise included receptivity to increase in prices as high raw material cost
• But retailers balked at the price increase
• Other competitors started making in roads with computerized stocking services
• Rubbermaid is adjusting its strategy in response to the industry
Industry factor

13. Strategic Surveillance
• Strategic surveillance is designed to observe a wide range of events
within & outside your organization that are likely to affect the course
of its strategy. Sources include trade magazines, journals, conferences,
conversations

14. Case Study: Citi Group
• Strategy is making earnings growth of 15%/annum
• Obstacle to earnings growth is exposure to
countries.
• Sensitive to impending Third World defaults.
• Strategic plan is 10% default on Third World loans
• Has active strategic surveillance control
• Branches monitor announcements from govt
• Peru’s former president, Alan Garcia, said that his
country would not pay interest on its debt as
scheduled. Citi Group raised its annual default
charge to 20% of its $100 million

15. Implementation control
Milestone reviewMonitoring strategy
It is aimed at assessing whether the plans, programs & policies are actually
guiding the organization towards its predetermined objectives or not.

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Case Study: Days Inn
• Days Inn hotel chain in U.S. pioneered budget
segment of lodging industry in U.S.
• It placed emphasis on company owned facilities to
control rates and standards
• As other firms moved into budget segment it wanted
to expand throughout USA.
• It reversed its franchise policy accelerating it to open
at new locations
• It instituted Implementation control requiring
Franchise evaluation & Annual Mile stone reviews
• Two years into the program the company accelerated
growth of franchising

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Monitoring strategy
Provides managers with information that help them determine whether overall strategy
is progressing as planned or needs to be adjusted.
Case Study: Days Inn
• Program of Regional Development via Company owned Inns in Rocky Mountain was
a Monitoring Thrust used to test its strategy of becoming a nationwide Motel Chain
• Problems in meeting time targets & large capital needs led to abandoning of the
strategy & sell of the firm.

18. Milestone review
Involves a full scale re assessment of the strategy and of the advisability of continuing or
refocusing of the firms decision
Case Study: Boeing Company
• Boeing wanted to enter the Supersonic Transport (SST) Airline Market
• Invested millions of dollars in the Phase 1 of the SST venture
• Competition with British/French Concorde was Intense
• Phase 2 of the venture was a Bn $ decision so it estd. start of the phase as milestone
• Milestone reviews of production cost, fuel costs, passenger interests stated high
operating costs for Boeing
• Concorde unlike Boeing had massive government subsidies
• Thus Boeing scraped the SST strategy in spite of huge sunk costs, pride & patriotism

19. Special Alert Control
24 Oct, 18 Group IX - Section 1
It is the thorough, and often rapid, reconsiderations of the firm's strategy
because of a sudden, unexpected event.
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20. Case Study: United Airlines
• Airline Crash is devastating for any major airline
• United Airlines has made elaborate plans to deal with it.
• Executive VP heads a crisis team that is prepared to
respond.
• The members of the team have been selected through
simulated crisis drills so that they can handle stress
• The crisis team was also used during 9/11 attacks & when
American Airlines launched a fare war.
• The Crisis team has been trained to deal with competition
crisis along with aircraft hijacking and crash incidents.

21. Q & A
Thank you
The fact that hot water freezes faster than
cold water still remains a mystery