Techniques of Strategic Evaluation and Control

20/03/2020 0 By indiafreenotes

Strategic management is the process of developing an organization’s mission and goals, and then outlining the steps and processes necessary to reach the company goals. Techniques for evaluating the effectiveness of a company’s strategy include evaluating internal and external forces that influence strategy execution, measuring company performance and determining appropriate corrective measures.

  1. Internal Forces

Strategy evaluation and Control should begin with an examination of the internal forces that will influence you company’s ability to follow the strategic plan. Your evaluation should consider the value of company resources such as financial assets, proprietary information and the people who are available to guide the company to meet its goals. This evaluation will help you understand how these assets can be developed to expand the company’s capabilities. All of these internal forces combined are what set your company apart from your competitors.

  1. External Forces

The next technique for strategy evaluation and Control is to consider the external forces that will influence your company’s ability to complete its mission. The primary external force your company must face are you customers. Customers purchasing the products and services your company produces will determine the success of your company. Is your company meeting the expectations of your customer base? Along with the consideration of your customers, you must evaluate the strengths and weaknesses of your competitors.

  1. Measuring Performance

The Evaluation and Control process will help you determine if the strategy you have developed is leading the company to meet its mission and goals. Begin this evaluation technique by evaluating if the results that have been realized through company operations have been successful. Evaluate if the sales force has been successful in meeting all of the sales goals. If you have a manufacturing facility, are production targets being met? Also evaluate if your company has been able to garner a greater share of the market.

  1. Correcting Performance

After your evaluation has considered all of the company’s historical performance data, the next step is determine what corrective measures should be taken to insure company operations are correctly aligned with the strategic plan. Many times making corrections to strategic operations will force changes that will cause objections, yet change is an essential element of the controlling process. You must ensure the company will be able to meet all of its short and long term strategic goals. Adjusting strategic operations is an essential technique of strategy evaluation.