This document discusses strategic surveillance, special alert control, and operational control budgeting. It defines strategic surveillance as monitoring events inside and outside a company that could impact its strategy. Special alert control requires rapidly reconsidering strategy due to unexpected events. Operational control ensures daily actions align with plans. The document outlines different types of budgets like operating, financial, variable, and zero-base budgets and explains their purposes in budgetary control.

1. Prestige Institute Of Management
And Research
PRESENTATION
ON :
STRATEGIC SURVEILLANCE, SPECIAL ALERT CONTROL
AND OPERATIONAL CONTROL BUDGETING
Submitted To:
Prof. Arpita Patel
Submitted By:
Sakshi Sood
Sakshi Vyas
Rupali Rajput
Shivli Gupta

2. Surveillance basically means "close observation of something."
Strategic surveillance is designed to monitor a broad range of events
inside and outside the company that are likely to threaten the
course of the firm's strategy.
Despite its looseness, strategic surveillance provides an
ongoing, broad-based vigilance in all daily operations

3. It is :
• A part of strategic control.
• General monitoring of multiple information sources .
• To uncover all the important yet unanticipated information.
• To observe events outside and inside the business that will affect the strategy
of the business
• A control method
• Activities are carefully and tactically ananlysed
• It helps in capturing information that is otherwise lost in an organisation.
• Kept as unfocused as possible.

4. Surveillance v/s Environmental Scanning
• They appear to be similar but are completely different.
• Environmental Scanning focuses on a NEW PLAN. It scans the
environment and provides information necessary for the new plan
• While, Surveillance is designed to safeguard the business strategy
on a continuous basis.

5. Ways of doing Strategic Surveillance/SOURCES
1.Reviewing outside literature
2.Environmental factors
3.Attending trade conferences
4.Social networking websites

6. Special Alert Control
"A special alert control is the need to thoroughly, and often
rapidly, reconsider the firm's basis strategy based on a
sudden, unexpected event.“
• QUICK RESPONSE TO A SUDDEN AND UNEXPECTED EVENT
• A special alert control is the rigorous and rapid reassessment of an
organization's strategy because of the occurrence of an
immediate, unforeseen event.
• An example of such event is the acquisition of your competitor by an
outsider. Such an event will trigger an immediate and intense
reassessment of the firm's strategy.

7. • There should be a crisis team management to handle your
company's initial response to the unforeseen events.
• There should be proper Contingency plans for such situations.
• The first step of Signal detection can be performed by special alert
control systems.
• Example: Slow down of the US and European economy resulted in
many Indian firms to reconsider their growth plans.

8. • The analysts of recent corporate history are full of such potentially
high impact surprises (i.e., natural disasters, chemical spills, plane
crashes, product defects, hostile takeovers etc.).
• While Pearce and Robinson suggest that special alert control be
performed only during strategy implementation.
• Preble recommends that because special alert controls are really a
subset of strategic surveillance that they be conducted throughout
the entire strategic management process.

9. Operating Control
Operational control are designed to
ensure that day-to-day actions are
consistent with established plans and
objectives. It focuses on events in a
recent period. It concerned with action
or performance

10. Budgetary Control
Budget:
• Budgets are the quantitative expressions of plans
• identify an organization’s objectives.
• Identify actions needed to achieve them.
• They form the basis for operations.
Budgetary control:
A control technique whereby actual results are compared with budgets.· Any
differences are made the responsibility of key individuals who can either
exercise control action or revise the original budgets. it involves measuring
,analyzing ,reporting and feedback of the budget performance .

11. Types Of Budgets
• Operating Budgets
• Financial Budgets
• Variable Budgets
• Zero-base Budgets

12. Operating Budgets
• An operating budget is a statement that presents the financial plan for
each responsibility centre during the budget period and reflects operating
activities involving revenues and expenses.
• The most common types of operating budgets are:
 Expense Budget
 Revenue Budget
 Profit Budget

13. Financial Budgets
• Financial Budgets outline how an organization is going to acquire its
cash and how it intends to use the cash.
• Three important financial budgets are :
 Cash budget
 Capital expenditure budget
 Balance sheet budget

14. Variable Budgets
• A variable budget is one that makes allowances for any unforeseen changes
or variations in costs or revenue for the company.
• There are fixed costs that are considered such as rent, loan payments, etc.
but some costs may change such as labor costs, production costs, etc.
• There are three types of costs that must be considered when variable
budgets are being developed:
 fixed,
 variable, and
 semi-variable costs.
• The problem in devising variable budgets is that cost variability is
often difficult to determine and that they are often quite expensive to prepare.

15. Zero-base Budgets
• Zero-base budgeting (ZBB) enables the organization to look at its
activities and priorities a fresh.
• Zero-base budgeting assumes that the previous year's budget is not a
valid base from which to work.
• It forces department managers to thoroughly examine their operations
and justify their departments activities based on their direct to the
achievement of organizational goals.

16. THANK YOU