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Presented By
Sujaya Kumar S
M.com., NET
 It is defined as the process of determining the
effectiveness of a given strategy in achieving the
organizational objective and taking corrective action
wherever required.
 It is the final step of strategy management process.
The key strategy activities are: appraising internal and
external factors that are the root of present
strategies, Measuring performance, and taking
remedial actions. Evaluation makes sure that the
organizational strategy as well as its implementation
meets the organizational objectives.
 Test effectiveness of strategy
 Formulation and implementation of strategy.
 Is strategy meeting organizational objectives.
 It gives feedback
 Achieving goals and objectives.
 It alerts on potential problems
 It helps refine and improve strategy
 It helps to change strategy
 It helps to identify rewarding behavior
 It helps to fix responsibility
 It helps in future planning
 Measuring performance
 Variance and corrective actions
 Information to stakeholders
 Shareholders
 Board of directors
 Chief Executives
 Profit –Centre heads
 Financial controllers
 Company secretaries
 External and Internal Auditors
 Audit and Executive Committees
 Corporate Planning staff or department
 Middle level managers
 Fixing benchmark of performance
 Measurement of Performance
 Identifying Variances
 Taking corrective and remedial actions.
 Gap Analysis
 SWOT Analysis
 PESTEL Analysis
 Benchmarking
 Types:
1. Premises Control:
a. Environmental Factors b. Industry Factors
2. Strategic Surveillance (Environmental
Scanning)
3. SpecialAlert Control
4. ImplementationControl
 Limits of control (Too much vsToo little control).
 Difficulties in measurement
 Motivational problems
 Short term orientations
 Goals displacement
 Resistance to evaluation
 It should involve only the minimum amount of
information.
 It should be timely.
 Long term and short term controls should be used.
 It should emphasize the reward of meeting or
exceeding the standards rather than punishment
for failing to meet standards.
 Encourage employees participation
Thank you….

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Strategy Evaluation: Measuring Performance and Taking Corrective Actions

  • 2.  It is defined as the process of determining the effectiveness of a given strategy in achieving the organizational objective and taking corrective action wherever required.  It is the final step of strategy management process. The key strategy activities are: appraising internal and external factors that are the root of present strategies, Measuring performance, and taking remedial actions. Evaluation makes sure that the organizational strategy as well as its implementation meets the organizational objectives.
  • 3.  Test effectiveness of strategy  Formulation and implementation of strategy.  Is strategy meeting organizational objectives.
  • 4.  It gives feedback  Achieving goals and objectives.  It alerts on potential problems  It helps refine and improve strategy  It helps to change strategy  It helps to identify rewarding behavior  It helps to fix responsibility  It helps in future planning  Measuring performance  Variance and corrective actions  Information to stakeholders
  • 5.  Shareholders  Board of directors  Chief Executives  Profit –Centre heads  Financial controllers  Company secretaries  External and Internal Auditors  Audit and Executive Committees  Corporate Planning staff or department  Middle level managers
  • 6.  Fixing benchmark of performance  Measurement of Performance  Identifying Variances  Taking corrective and remedial actions.
  • 7.  Gap Analysis  SWOT Analysis  PESTEL Analysis  Benchmarking
  • 8.  Types: 1. Premises Control: a. Environmental Factors b. Industry Factors 2. Strategic Surveillance (Environmental Scanning) 3. SpecialAlert Control 4. ImplementationControl
  • 9.  Limits of control (Too much vsToo little control).  Difficulties in measurement  Motivational problems  Short term orientations  Goals displacement  Resistance to evaluation
  • 10.  It should involve only the minimum amount of information.  It should be timely.  Long term and short term controls should be used.  It should emphasize the reward of meeting or exceeding the standards rather than punishment for failing to meet standards.  Encourage employees participation