CHAPTER 7 STRATEGY EVALUATION Dept of strategic management 9/16/2022176 http //images google com vn/imgres?imgurl=http //www johnwiley com au/highered/stratmgt2e/0470809299 jpg&imgrefurl=http //www jo[.]
CHAPTER STRATEGY EVALUATION 176 Dept of strategic management 9/16/2022 OUTLINE 7.1 Definition, the nature and process of strategy evaluation 7.2 Strategy evaluation framework 177 Bộ môn Quản trị chiến lược 9/16/2022 7.1 Definition and nature Definition: “Strategy evaluation allow firms to monitor and evaluate whether, their strategy and structure are working as intended, how they could be improved, and how they should be changed if they are not working” (Hill and Jones, 2008) 178 Bộ môn Quản trị chiến lược 9/16/2022 Nature (1) Monitoring how well an organization and its members are currently performing (2) How well the firm is using its existing resources (3) How to create he incentives to keep employees motivated and focused on the important work together and find solutions that (4) Find solutions that can help an organization perform better over time 179 Bộ môn Quản trị chiến lược 9/16/2022 7.1.2 Process 180 Bộ môn Quản trị chiến lược 9/16/2022 7.1.3 Criteria for strategy evaluation 181 Bộ môn Quản trị chiến lược 9/16/2022 Criteria for Strategy evaluation 182 Consistency Strategy should not present inconsistent goals & policies Consonance Need for strategies to examine sets of trends Feasibility Either overtax resources or create unsolvable sub-problems Advantage Creation or maintenance of competitive advantages Bộ môn Quản trị chiến lược 9/16/2022 OUTLINE 7.1 Definition, the nature and process of strategy evaluation 7.2 Strategy evaluation framework 183 Bộ môn Quản trị chiến lược 9/16/2022 7.2 Strategy evaluation framework 184 Bộ môn Quản trị chiến lược 9/16/2022 Strategy evaluation framework 185 Determine what to measure Top-level and operational managers need to identify the implementation processes and results that will be monitored and evaluated Establish of standards Strategists must establish performance targets, standards and tolerant limits for organizational objectives, strategy and implementation plans Standards can pertain to quality, cost and time Measure performance Measuring actual performance may involve measurements in qualitative and quantitative terms and in terms of time and cost Managers may accordingly ask for performance reports from their employees Performance deviations Actual performance must be objectively compared against predetermined standards Deviations, if any, must be identified If the actual performance is within the desired tolerance range, the evaluation is stopped Take corrective actions If an organization’s actual performance falls outside the desired tolerance range, corrective action must be taken to correct deviations This may require resetting of goals or objectives or revision of plans, policies and standards Corrective steps must be taken at the right time to achieve organizational objectives Bộ môn Quản trị chiến lược 9/16/2022 Do you have any questions? Strategic Management Department 186 9/16/2022 ...OUTLINE 7. 1 Definition, the nature and process of strategy evaluation 7. 2 Strategy evaluation framework 177 Bộ môn Quản trị chiến lược 9/16/2022 7. 1 Definition and nature ... can help an organization perform better over time 179 Bộ môn Quản trị chiến lược 9/16/2022 7. 1.2 Process 180 Bộ môn Quản trị chiến lược 9/16/2022 7. 1.3 Criteria for strategy evaluation 181 Bộ môn... chiến lược 9/16/2022 OUTLINE 7. 1 Definition, the nature and process of strategy evaluation 7. 2 Strategy evaluation framework 183 Bộ môn Quản trị chiến lược 9/16/2022 7. 2 Strategy evaluation framework