Strategic business unit and

functional level strategies

• True success of an organization depends upon effective formulation
and implementation of strategies.
• Innovative companies are good at strategy formulation and
implementation.
• Effective managers work back and forth between these two.
• There is a need to understand the concept of strategic business units
and functional strategies.
Strategy management outcomes – matrix
form
• Success: when an organization has good strategy and implements it
well.
• All that can be done to ensure success has been done.
• Environmental factors outside the company’s control such as
competitors, customers changes may still make a strategy
unsuccessful.
• But organizational objectives have the best chance of being achieved
in this cell.
• Roulette: situations wherein a poorly formulated strategy is
implemented well.
• Two basic outcomes:
• The good execution may overcome the poor strategy or atleast give
management an early warning of impending failure.
• Eg. The field sales force recognizes the problem in the strategy and
changes its selling approach to a more successful one.
• It is impossible to predict exactly what will happen to strategies in this
cell.
• Trouble cell: situations wherein a well-formulated strategy is poorly
implemented.
• Because managers are more accustomed to focusing on strategy
formulation, the real problem with the strategy – faulty
implementation is often not recognized.
• When things go wrong, the managers are likely to reformulate the
strategy rather than questioning what went wrong.
• The new strategy is re-implemented and continues to fail.
• Failure: most likely to occur when a poorly formulated strategy is
poorly implemented.
• Management has great difficulty getting back on the right track.
• Strategic problems in this cell of the matrix are very difficult to
diagnose and rectify.
• Conclusion:
• Strategy implementation is as important as strategy formulation.
• Quality of a formulated strategy is difficult to assess in the absence of
effective implementation.
Types of organizational structure
• Two basic kinds: formal and informal
• Formal: represents the relationship between the people at different
designations, conveyed in the organizational chart.
• Informal: social relationships based on friendship, interest shared
among members of the organization.
• Grapevine – can be used to encourage rapid execution of strategies.
• 5 main types: simple, functional, divisional, SBU, matrix
Simple organizational structure:
• Has only two levels, the owner- manager and the employees.
• Small firms with one product or only a few related ones usually use
this type.
• Facilitates control of all the • Relies totally on the owner –
business activities. manager.
• Make possible rapid decision • Grows increasingly inadequate
making and ability to change as the volume expands
with market signals • Does not facilitate development
• Offers simple and informal of future managers
motivation- reward – control • Owner manager is forced to
system. focus on day-to-day matters and
not on future strategy.
Functional organizational structure:
• as organizations grow and develop a number of related products and
markets, their structure frequently changes to reflect greater
specialization in functional areas.
• Such line functions as production and operation, marketing and
research and development may be organized in departments.
• Boosts efficiency through • Promotes narrow specialization
specialization and potential functional rivalry or
• Fosters improved development of conflict
functional expertise. • Fosters difficulty in functional
• Differentiate and delegates day to coordination and inter functional
day operating decisions decision making
• Sharply focusing on accountability • Limits internal development of
for performance general managers.
• Retains functional specialization
within each division.
• Good training ground for strategic
managers
Divisional organizational structure
• As firms acquire or develop new products in different industries and
markets, they may evolve a divisional organizational structure.
• Each division may operate autonomously under the direction of a
division manager, who reports directly to CEO.
• Divisions may be formed on the basis of product lines, markets,
geographic areas, channels of distribution.
• Each division not only has its own line and staff functions to manage,
but also formulates and implements strategies on its own with the
approval of CEO.
Strategic business unit structure
• When a divisional structure becomes unwieldy because a CEO has too
many divisions to manage effectively, organizations may reorganize in
the form of strategic business units or strategic groups.
• This structure groups a number of divisions together on the basis of
such things as the similarity of product lines or markets.
• Vice presidents are appointed to oversee the operations of the newly
formed strategic business units , and they report to the CEO.
• Tightens the strategic • May increase dysfunctional
management and control of competition for corporate
large, diverse business resource.
enterprise. • May make defining the role of
• Facilitates distinct and in-depth the group VP difficult.
business planning at the • May increase difficulty in
corporate and business level. defining the degree of autonomy
• Channels accountability to for the group VP and division
distinct business units. managers.
Matrix organizational structure:
• Used to facilitate the development and execution of various
programs or projects.
• Each of the department VP lined at the top has functional
responsibility for all the projects, whereas each of the project
managers has project responsibility for completing and implementing
the strategy.
• This approach allows project managers to cut across departmental
lines and can promote efficient implementation of strategies.
• Accommodates a wide variety of • Can create confusion and
project oriented business activity. contradictory policies by allowing
• Serves as a good training ground dual accountability
for strategic managers • Necessitates tremendous
• Maximize efficient use of horizontal and vertical
functional managers coordination.
• Fosters creativity and multiple
sources of diversity
• Provides broader middle
management exposure
Role of SBU level executives
• The executives are profit centre heads or divisional heads and are
considered the chief executives of a defined business unit for the purpose
of strategic management.
• An SBU level executive wields a lot of authority within the SBU and also
works in coordination with other SBUs.
• Many public and private sector companies have adopted the SBU concept.
• Strategic planning at MRF ltd used senior management expertise by
dividing them into five groups, dealing with products and markets,
environment, technology, resources and manpower.
• Each group had a leader who helped to prepare position paper for
presentation to the Board.
• The executive directors actively involve in SWOT analysis.
Functional strategies
• Functional strategies help in implementation of grand strategy by
organizing and activating specific subunits of the company (
marketing, finance, production etc) to pursue the business strategy in
daily activities.
• Implementing the corporate strategy requires the development of
functional strategies in key areas like marketing, production, R & D,
finance and human resources.
Environmental analysis and
diagnosis
Environment and its components
introduction
• Business organizations operate in a turbulent environment and the
changes in the environment impact business.
• The changes that take place in the internal and external environments
affect the policy decisions of the business enterprises.
• In order to survive and succeed a company must consider and
understand the environment and make policies to adopt to or alter
the environment.
• Prof. Keith Davis defines business environment as “the aggregate of
all conditions events and influences that surround and affect it”.
• Types of environment:
• Internal environment – goals and value system, hierarchial authority,
structure, the technological equipment and processes, social groups
and teams, the management groups, organizational climate and
culture
• External environment : Micro and Macro environments.
Macro environment
• PEST or STEP or PESTEL
• Political, environmental, socio-cultural, technological, economic and
legal.
• These environments can be further classified into international,
regional, national etc.
Micro environment
• Includes employees, shareholders, creditors, suppliers, customers and
financial institutions, regulatory organizations, channels of
distribution, special interest groups like consumer associations,
community organizations.
• L & T has diversified product mix like machinery for cement, switch
gas, material handling equipment, machinery for diary plants,
computer peripherals etc and has many micro environments.
• Only necessary information should be gathered by L&T from the
relevant environment.
Macro environment – socio cultural
environment
• Key variables in the environment, demographics like literacy rates, sex
ratios, child birth rates, age distribution, educational level, life style,
geographic distribution, mobility of the pollution, cultural variables
like beliefs, values, faiths, religion, customs and traditions.
• Growing fast food culture
• Women moving from kitchen to corporate
• Burgeoning middle class
• Increasing literacy levels
• Declining birth rates and increasing senior citizens
• Increasing health consciousness
• Eg McDonald, the world’s fastest growing fast food chains extended
Indian market with beef and pork as ingredients in pizzas and burgers.
• Since Hindus are religiously against cow slaughter and do not
consume beef and Muslims hate pork there was great opposition in
Bombay and the local shiv sena activities broke down McDonald’s fast
food centre at Mumbai.
• The company relaunched products with no beef and no pork sign
boards and gave wide publicity that animal fat is not used in its
restaurants.
• Also added new versions for Indian market such as Mc Imli and Mc
spic exclusively for Indian market.
Social cultural and demographic variables
• Child bearing rates
• Number of specific interest groups
• Birth and death rates
• Life expectancy rates
• Attitude towards work and organization
• Attitude towards government
• Attitude towards authority
• Ethical norms
• Value system
• Composition of work force
• Attitude towards income, savings and capital formation
• Social ethos towards work and organization
Technological environment
• Managers need technology to design, produce, distribute and sell goods
and services.
• Positive benefits are seen in new products, new machines, new tools, new
material and services.
• Benefits include greater productivity, higher living standards, more leisure
time and greater variety of products.
• Eg, range of cars – subcompacts, compacts, intermediaries, sports,
specialty, variations in engine power, steering A/c, speed control, roof etc.
• Negative effects include pollution, energy shortage, loss of privacy, traffic
jam etc.
• Balanced approach is therefore needed
• Eg, Xerox dominated the world photocopier market with 93 percent of
market share.
• It guarded its technology with over 500 patents.
• Canon was a camera company from Japan that entered into the business
around 1970, didn’t have the process technology to by-pass Xerox patents.
• Canon rewrote the rule book of how copies were to be produced and sold.
• Canon succeeded, not by copying Xerox,but canon believed that individual
and small business would find the product useful only if they could afford
it.
Economic environment
• Capital – machinery, building, investment, office equipment, tools and
cash, issuing shares and debentures, borrowings from commercial
banks
• Labor – availability of skilled labor at affordable wage rates. US
companies are outsourcing from India because labor is very cheap
here.
• Prices – the price changes caused by business cycles. A price rise in
one industry affects in other industries. It reduces the purchasing
power of consumers and reduces demand
• Government fiscal and tax policies – government control on
availability of credit through fiscal policy has considerable impact on
business. If business profit taxes are high, the interest to go into
business gets marginalized.
• Customers: people want value for money they buy and service that
satisfy their needs. Companies are customizing products to specific
groups or individuals.
• Eg., CRM, auto companies opening service centres.
• Economic factors and economic growth
• Interest rates : when goods are to be bought using borrowed funds.
• If interest rate is low, demand for products will rise.Eg. Auto mobiles,
appliances, capital equipments, housing materials etc.
• Interest rate also determines the cost of capital of company.
• Currency exchange rates: when rupee was devalued in 1991,, it was
to make the Indian products cheaper in world market and boost
Indian exports.
Political and legal environments
• Attitude of government.
• Prevalence of political uncertainty has effect on business strategy. No
business likes to commit itself for long term strategies or investment
with uncertain countries.
• Legal environment consist of judiciary and legislation.
• Companies act 1956, factories act 1948, payment of wages act 1936,
minimum wages act, shop and establishment act, trade union act
Natural environment
• Geographical and ecological factors, natural resources, endowments,
weather and climatic conditions, topographical factors, location
aspects in global context, port facilities, are relevant.
• Availability of natural resources may affect the demand patterns.
Environmental scanning
techniques
1. Issue priority matrix (IPM)
• It is a strategic management tool used to categorize and prioritize
various strategic issues based on their potential impact and urgency,
allowing decision makers to allocate resources effectively by
identifying which issues require immediate attention and which can
be addressed later depending upon their importance and time
sensitivity
• It helps organizations decide which strategic challenges to focus on
first by evaluating their relative significance and time constraints.
• Identify a number of likely trends emerging in the societal and task
environments. These are important trends, that, if occur, determine
what the industry or the world will look like in the near future
• Assess the probability of these trends actually occurring from low to
high
• Attempt to ascertain the likely impact of each of these trends on the
corporation being examined.
• High impact, high urgency: critical issues requiring immediate action
• High impact, low urgency: important strategic issues that need
proactive planning, if not immediately pressing
• Low impact, high urgency: urgent issues that may need quick
responses but have minimal long term strategic implications
• Low impact, low urgency: issues that can be monitored or delegated
based on resource availability
• The issue priority matrix can be used to help managers decide which
environmental trends should be merely scanned and which should be
monitored as strategic factors.
• They are then categorized as opportunities and threats and are
included in the strategy formulation.
• Benefits: clear prioritization, decision making support, resource
allocation
2. Environmental threat and opportunity
profile ETOP
• Assessment of the environmental information and determining the
relative significance of threats and opportunities require a systematic
evaluation of the information developed in the course of
environmental analysis
• For this purpose, preparation of a profile of environmental threat and
opportunity is considered to be a useful device.
How ETOP works
• Divide the environment into sectors
• Analyze how each sector impacts the business
• Subdivide each sector into sub factors
• Analyze how each sub-factor impacts the business
• Create a profile of the environment
• Use the profile to formulate a strategy
Benefits of ETOP
• Provides an accurate view of the company’s competitive position
• Helps business identify opportunities and threats
• Helps business sustain in a competitive environment
• Helps business formulate appropriate strategies
Environmental threats and opportunities
(ETOP) – BHEL
3. Strategic advantage profile SAP
• It is a summary of statement, which provides an overview of
advantages and disadvantages in key areas likely to affect future
operations of the firm.
• It is a tool for making a systematic evaluation of the strategic
advantage factors, which are significant for the company in its
environment.
• The preparation of a profile requires detailed analysis and diagnosis
of factors in each of the functional areas ( marketing, production,
finance, accounting, personnel, HR and R&D.
How to create a SAP
• Analyze the company’s internal environment, including its functional
areas like finance, marketing, production, HR
• Analyze the company’s internal environment
• Use a SWOT analysis
• Create a summary statement that highlights the company’s key
advantages and disadvantages.
4. Functional area profile and resource
deployment matrix
• Developed by Hofer and Schendel, this method requires the
preparation of a matrix of functional areas with characteristics
common to each, focus of financial outlay, physical resource position,
organizational system, technological capability.
• It analyzes the strengths and weaknesses across different functional
areas by detailing the capabilities within each area and mapping out
how resources should be allocated to maximize performance and
achieve strategic objectives
• The functional area profile of a manufacturing company is given for
illustration.
5. SWOT analysis
• It is a systematic identification of these factors and the strategy that
reflects the best match between them.
• It is based on the logic that an effective strategy maximizes the
strengths of a business and opportunities but at the same time
minimizes its weaknesses and threats.
Opportunities and threats
• Favorable situation in • Unfavorable situation.
environment. • Entrance of a new competitor,
• Identification of a previously slow market growth, increased
overlooked market segment, bargaining power of key buyer or
changes in competitive or supplier, major technological
regulatory circumstances, changes, changing regulations.
technological changes, improved
buyer or supplier relationships.
Strengths and weaknesses
• A resource, skill or other • Limitation or a deficiency in
advantage relative to resources, skill.
competitors and the needs of • Facilities, financial resources,
the market a firm serves or management capabilities,
anticipates serving. marketing skills, brand image
• Financial resources, image,
market leadership,
buyer/supplier relations
• Cell 1: most favorable. The firm faces several environmental
opportunities and has numerous strengths that encourage pursuit of
such opportunities.
• Cell 2: a firm with key strength face an unfavorable environment.
Strategies would use current strengths to build long term
opportunities in other products/market.
• Cell 3: impressive market opportunity but constrained by many
internal weaknesses. Eliminate internal weakness to more effectively
pursue market opportunity
• Cell 4: least favorable situation, with firm facing major environmental
threats from a position of a relative weakness.
6.Impact matrix
• The impact of various strategies is examined with the help of impact
matrix
• After identifying the trends in mega, micro and relevant environments
the degree of impact can be measured on an impact scale.
• The impact matrix can be for a specific business unit or for a overall
company.
• Benefits: prioritizes options, identifies risk, saves time, streamlines
workload management, maximizes efficiency.
7. Gap analysis
• It is useful method to describe the process involved in deciding what
course of action should be taken to remove any potential profit or
sales gap or risk gap.
• Profit gap: gap between profit for past few years and profit projection
• Sales gap: gap between planned and actual sales
• Product gap: difference between what a firm offers in terms of
product items and what the industry provides in terms of product line
• Risk gap: gap between anticipated risk with strategic decision and
actual happening.
8. Balanced score card
• It is a tool that helps businesses measure and manage their
performance.
• It is useful to assess the internal strength and weakness of a company.
• It attempts to examine a firm’s strength and weakness from different
perspective, instead of focusing on a narrow set of criteria.
• The scorecard does not outweigh one perspective and underscore
other, rather it balances all of them.
• How BSC works:
• Set goals, develop action plan, define metrices, measure
performance, adjust strategy
• BSC considers four perspectives:
• Financial
• Customer
• Business processes
• Learning and growth
Balanced score card
• To generate superior return for shareholders, company should have
competitive advantage that depends upon its ability to provide certain
values to customers.
• These values can be provided by offering them better, cheaper and faster
products or services.
• For this the company requires development of operations that support
product development and responsiveness to fulfill orders.
• To facilitate quality operations, company needs organization with required
creativity, skill and learning.
• Thus, financial scorecard depends upon many dimensions which contribute
to the strength and success of the company.s
Organizational appraisal – strategic
advantages analysis and diagnosis –
swot analysis
Organizational appraisal
Organizational appraisal is the systematic evaluation of the internal environment
of a firm in order to determine the strength and weaknesses that influences a
firm's ability to achieve its goals.
Organizational strengths enable a firm to decide the area which it should
undertake.
How is it done?
Analyse the internal environment, including resources, behaviour, competencies.
Considers key factors like finance, marketing, operations and personnel.
Uses a variety of techniques including VRIO, value chain analysis and financial, non financial
metrices
Considers external factors like market trends and the competitive landscape.
Benefits:
To gain insights that can help improve competitiveness
To inform decision making and future planning
To help develop strategies to maximise strengths and overcome weaknesses.
Organizational appraisal
Organizational capability factors
Tools for organizational appraisal:
VRIO
VALUE CHAIN ANALYSIS
Value chain analysis
Quantitative analysis
Qualitative and comparative analysis
Strategic advantages analysis and
diagnosis
Strategic advantage analysis is the process by which strategists examine a firm's key functional
areas like marketing, R&D, production, resources, and finance to determine strengths and
weaknesses. This allows the firm to capitalize on opportunities and address threats.
It is a process of thoroughly examining a company’s internal strengths, weaknesses as well as
opportunities and threats within the market, to identify areas where it can gain a competitive
edge and develop strategies to capitalize on those advantages, while mitigating potential risks.
Key elements
SWOT analysis: a framework to identify a company’s strength, weakness, opportunity and
threats, providing a comprehensive overview of its internal and external factors impacting its
competitive standing.
Internal analysis:
resource audit
Competency analysis
Resource audit and competency analysis
Examining the company’s key resources like Identifying core competencies which are
human capital, technology, financial assets, unique skills or capabilities that set the
intellectual property to assess their potential company apart from competitors
for competitive advantage
External analysis
Industry analysis: PESTLE analysis:
Studying the industry dynamics including Examining the political, economic, social,
market size, growth rate, competitive intensity, technological, legal and environmental factors
major players to understand the competitive that might influence the company’s
landscape. operations.
Benefits of strategic advantage analysis
and diagnosis:
Informed decision making
Improved strategic alignment
Proactive response to change
 Strategy formulation and choice – modernization,
diversification, integration – merger takeover and joint
strategies – turnaround and disinvestment, liquidation
strategies
Strategy formulation
• Refers to the process of choosing the most appropriate course of action for
the realization of organizational goals and objectives and thereby achieving
the organizational vision.
• Process:
• Setting the organizations objectives
• Evaluating the organizational environment
• Setting quantitative targets
• Aiming in context with the divisional plans
• Performance analysis
• Choice of strategy
Modernization, diversification and integration
• Modernization:
• Bridging an organization’s past, present and future.
• A business process, that help to increase revenue, reduce cost and
increase share price.
• Improving current business processes to better support organizational
objectives.
• Diversification is used to exp and firm’s operations by adding markets,
products, services, stages of producing to the existing businesses.
• Purpose of diversification is to allow the company to enter lines of
business that are different from current operations.
Types of diversification:
• On the basis of growth strategies:
• Concentric diversification: when a firm adds related products.
• Conglomerate diversification: when a firm diversifies into areas that
are unrelated to its current line of business.
• On the basis of direction:
• Vertical: when a firm undertakes operations at different stages of
production
• Horizontal: when a firm enters a new business at the same stage of
production of its current operations.
Types of diversification
• Grow or buy:
• Internal diversification: expanding a firm’s product or market base .
• A. market existing products in new markets
• B. market new products in existing markets.
• External diversification: when a firm looks outside of its current
operations and buys access to new products or markets.
takeover
Reasons for divest
• Market share too small
• Availability of better alternatives
• Need for increased investment
• Lack of strategic fit
• Legal pressure to divest
LIQUIDATION
• Closing down the operations of a business.
• A firm sold in parts, sold in whole only occasionally
• Reasons:
• Company being unable to repay its debts, making it insolvent
• Company directors wanting the business to avoid trading while
insolvent
• No purpose or benefit to be gained by the company continuing
Effects of liquidation:
Legal issues of liquidation
Strategic choice – factors
affecting strategic choice
Industry and competitor analysis
INDUSTRY ANALYSIS
Threat of potential entrants
Entry barriers
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute goods/services
PEST ANALYSIS
SWOT ANALYSIS
 GENERIC COMPETITIVE STRATEGIES
COST LEADERSHIP, DIFFERENTIATION, FOCUS, VALUE CHAIN ANALYSIS,
BENCHMARKING, SERVICE BLUE PRINTING
ACHIEVING COST LEADERSHIP
BENEFITS OF COST LEADERSHIP
DIFFERENTIATION

• Adding value to the product/service

VALUE CHAIN ANALYSIS
BENCHMARKING
BENEFITS OF BENCHMARKING
BENCHMARKING PROCESS
STATES OF BENCHMARKING
SERVICE BLUEPRINTING
functional strategies
functional strategies
• it is an approach that functional areas take to achieve corporate and
business unit objectives and to maximize resource productivity.
• it helps managers in focusing on company’s major functional areas of
activity.
objectives of functional strategies
• profitability
• market share
• human talent
• financial health
• cost efficiency
• product quality
• innovation
• social responsibility
types of functional strategies
• marketing
• production and operations
• R&D
• HRM
• Financial
marketing strategies
R&D STRATEGIES
HRM AND FINANCE -
STRATEGIES
STRATEGIC HRM
• linking of human resources with strategic goals and objectives in
order to achieve business performance and develop organizational
culture that foster innovation, flexibility and competitive advantage.
• practice of attracting, developing, rewarding and retaining employees
for the benefit of both the employees as individuals and the
organization as a whole.
Strategic financial management
Tools of Strategic Financial Management
• Ratio analysis
• Budget
• Cash and Fund flow analysis
• Marginal costing tools and it’s applications
• Tools of inventory management such as ABC, VED, JIT.
• Benchmarking
• Operating and Financial leverages
Planning, resource allocation,
organizational structure and
change, organizational
development
Planning:
• Futuristic, decision oriented and
goal driven. First function of
management and foundation of
other functions.
• Planning bridges the gap between
where we are and where we want
to go. It makes it possible for
things to occur that would not
otherwise happen.
• Types of plans
• Strategic plans
Resource allocation
• Resources may be existing with a company or can be acquired
through capital allocation. They include physical, financial and human
resources.
• Problems in resource allocation:
• Scarcity of resources
• Restriction on generation of resources
• Overstatement of needs
Organizational structure and design: Key
elements
• 1. Departmentation
• Once activities are divided based on work specialization common
tasks are to be grouped together. It can be on the basis of functions,
geographical areas, product, process, customers.
• 2. Chain of command 3. Span of control
• Continuous line of authority that • Number of employees a
extends from upper supervisor can effectively
organizational levels to the manage.
lowest levels and clarifies who
reports to whom.
• Who do I go to if I have a
problem? Or To whom am I
responsible?
4. Centralization and decentralization
5. Learning organization
• Organization that has developed the capacity to continuously adapt
and change because all members take an active role in identifying and
resolving work-related issues.
• Employees participate in knowledge management by continuously
acquiring and sharing new knowledge and are willing to apply that
knowledge in making decisions or performing their work.
• It is one of the main source of attaining competitive advantage.
Characteristics of a learning organization
Organizational design and change
• Stephen P Robbins, change is concerned with making things different.
Change occurs when an organizational system is disturbed by some
internal or external force.
• Change agent – person who acts as a catalyst, assumes the
responsibility for managing the change process.
• Change intervention – planned section to make things different.
• Change targets - individual or group who are subject to change.
• Change levels – individual, group, organizational.
Reasons for change:
Approaches to managing change:
• 1. Lewin’s three step model
• Unfreezing: release of forces
dormant in the status quo.
• Movement: transforming from
old to new situation or to a new
state.
• Refreezing: consolidation in the
new situation to make change
permanent.
2. Action research
• Data-based, problem-oriented process that diagnose the need for
change, introduce the intervention and evaluates and stabilizes the
desired change.
3. Organizational Development
• Collection of planned-change interventions built on humanistic-
democratic values that seek to improve organizational effectiveness
and employee well-being.
• Respect for people
• Trust and support
• Power equalizations
• Confirmation
• Participation
OD interventions
• Sensitivity training
• Survey feedback
• Process consultation
• Team building
• Inter group development
• Appreciative enquiry
Strategic evaluation and
control
overview – techniques of strategic evaluation and control
Strategic evaluation
• Strategic evaluation is the process of determining the effectiveness of a
given strategy in achieving the organizational objectives and taking
corrective action whenever required.
• Strategic evaluation is the final step of strategic management process. The
key strategy evaluation activities are:
• Appraising internal and external factors that are the root of present
strategies
• Measuring performance
• Taking remedial/corrective actions.
• Evaluation makes sure that the organizational strategy as well as its
implementation meets the organizational objectives.
Strategic management process
nature
Importance of strategic evaluation
Participants in strategic evaluation
Process of strategic evaluation
Techniques of strategic evaluation
Types