2. This unit deals with the last phase
of strategic management . The formulation of
strategy lays down the strategic intent and the
strategy required to achieve them . The end
result is adjustment of strategies reformulation
of objectives or adoption of plans
3. Strategic evaluation and control
is the process of determining the
effectiveness of a given strategy in achieving
the organizational objectives and taking
corrective action wherever required
4. ‘Evaluation of strategy is
that phase of the strategic management
process in which the top managers determine
whether their strategic choice as
implemented is meeting the objectives of
the enterprise.’
-GLUECK &JAUCH
5. Evaluation and control likely to be successful if the
prevailing hierarchy of systems manifest the
following basic characteristics :
Control to report deviation framework
Control to attain planned objectives &
implemented strategies
Control that is understandable
Human aspects of control
Strategic point control
Control to fit the organizations
Control for the corrective action
Flexible control
Cost effective control
Control for objective
6. The participants in the
strategic evaluation are mentioned as follows
• Shareholders
• Board of directors
• Chief executives
• The managers
• Financial controllers , company
secretaries and auditors
• Audit & executive commitees
7. Five major types of barriers can
be pointed out :
Limits of control
Difficulties in measurement
Resistance to evaluation
Short – term implications
Relying on efficiency versus effectiveness
8. Control should involve only the minimum
amount of information as too much
information tends to clutter up the control
system and creates confusion
Controls should be timely so that corrective
action can be taken quickly
Controls should aim at pinpointing exception
as nitpicking does not result in effective
evaluation
Reward of meeting or exceeding standards
should be emphasized so that managers are
motivatedto perform
9. Strategic evaluation is to
monitor and evaluate progress towards
organizations objectives and to guide or
correct the process or change the strategic
plan to better accord with current condition
and purposes .
