LECT-10-STRATEGY FORMULATION, IMPLEMENTATION, EVALUATION & CONTROL.pptx

STRATEGY FORMULATION, IMPLEMENTATION, EVALUATION & CONTROL:
Strategy formulation includes planning & decision-making and developing plans to achieve organizational goals & objectives.
It is an entrepreneurial activity based on strategic decision making to reach at vision.
It demands co-ordination of personnel of each and every level of organizational hierarchy.
It requires strong analytical and conceptual skill.
Choice of strategy involves understanding and choosing the best formulated strategy across different strategic alternatives.
Its first step is SWOT analysis.
Management needs to seek to identify & evaluate alternative courses of action to ensure that the business reaches the objectives they have set.
It is a creative process of generating alternatives, building on the strengths of the business & allowing it to tackle new products or markets to improve its competitive position.
STEPS IN STRATEGIC CHOICE
Strategy formulation
Focusing on strategic alternatives
Evaluating strategic alternatives
Considering decision factors
Choice of strategy.
Strategy implementation involves all those means related to executing the strategic plans.
It is mainly a administrative task based on strategic & operational decisions.
It is an operational process which requires co-ordination among all employees.
It requires specific leadership & motivational traits
Evaluation of strategy is as significant as strategy formulation because it throws light on the efficiency & effectiveness of comprehensive plans in achieving the desired results.
The managers can also assess the appropriateness of the current strategy in today’s dynamic world which is influenced by PEST (Political, Economic, Social & Technological )
It is very significant because of various factors such as: developing inputs for new strategic planning, the urge for feedback, appraisal & reward, development of strategic management process, judging the validity of strategic choice etc.
PROCESS/ STEPS OF STRATEGIC EVALUATION
Setting standard performance or expected performance or benchmarking performance.
Measure the actual performance.
Analyzing the variance by comparing standard and actual performance.
Taking corrective action to achieve the target

1. STRATEGY FORMULATION, IMPLEMENTATION, EVALUATION & CONTROL BY: Dr. Debajani Palai

2. STRATEGY FORMULATION Strategy formulation includes planning & decision-making and developing plans to achieve organizational goals & objectives. It is an entrepreneurial activity based on strategic decision making to reach at vision. It demands co-ordination of personnel of each and every level of organizational hierarchy. It requires strong analytical and conceptual skill.

3. STRATEGIC CHOICE MAKING Choice of strategy involves understanding and choosing the best formulated strategy across different strategic alternatives. Its first step is SWOT analysis. Management needs to seek to identify & evaluate alternative courses of action to ensure that the business reaches the objectives they have set. It is a creative process of generating alternatives, building on the strengths of the business & allowing it to tackle new products or markets to improve its competitive position.

4. STEPS IN STRATEGIC CHOICE Strategy formulation Focusing on strategic alternatives Evaluating strategic alternatives Considering decision factors Choice of strategy

5. STRATEGY IMPLEMENTATION Strategy implementation involves all those means related to executing the strategic plans. It is mainly a administrative task based on strategic & operational decisions. It is an operational process which requires co-ordination among all employees. It requires specific leadership & motivational traits

6. EVALUATION OF STRATEGY Evaluation of strategy is as significant as strategy formulation because it throws light on the efficiency & effectiveness of comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in today’s dynamic world which is influenced by PEST (Political, Economic, Social & Technological ) It is very significant because of various factors such as: developing inputs for new strategic planning, the urge for feedback, appraisal & reward, development of strategic management process, judging the validity of strategic choice etc.

7. PROCESS/ STEPS OF STRATEGIC EVALUATION Setting standard performance or expected performance or benchmarking performance. Measure the actual performance. Analyzing the variance by comparing standard and actual performance. Taking corrective action to achieve the target.

8. TYPES OF STRATEGIC CONTROL Strategic control aims at monitoring the course of progress in the predetermined direction. There are different types of strategic controls. These are: Premise control Implementation control Strategic surveillance Special alert control Strategic momentum control Strategic leap control

9. PREMISE CONTROL Premise control: A company must base its strategy on important assumptions related to environmental factors, industrial factors & organizational factors. Premise control continually verifies whether such assumptions are right or wrong. If they are not valid corrective actions are taken. The responsibility for premise control can be assigned to the corporate planning staff who can identify for assumptions & keep a regular check on their validity.

10. IMPLEMENTATION CONTROL It can be done by milestone review. It is similar to the identification of smaller scale of events & activities I PERT/CPM networks. After the identification of milestones, a comprehensive review of implementation is made to reassess its relevance to continue to achieve the objectives.

11. STRATEGIC SURVEILLANCE Strategic surveillance is aimed at a more generalized & overarching control. It can be done through a broader base, general monitoring on the basis of selected information sources to uncover events that are likely to affect the strategy of an organization.

12. SPECIAL ALERT CONTROL Special alert control is based on a trigger mechanism for rapid response & immediate reassessment of strategy in the light of sudden & unexpected events. It can be exercised through the formulation of contingency strategies & assigning the responsibility of handling unforeseen event to crisis management. Examples: sudden fall of a government at the central or state level, instant changes in competitors’ posture, industrial disaster and natural disaster.

13. STRATEGIC MOMENTUM CONTROL Strategic momentum control aims to find out what needs to be done in order to allow the organization to maintain its existing strategic momentum. It uses techniques like: R esponsibility control centers (revenue, expense, profit, investment). Generic strategies approach which is based on the assumption that the strategies adopted by a firm is similar to another comparable firm. Continuous evaluate strategy to assess whether or not the strategies are helping in the organization’s goal achievement.

14. STRATEGIC LEAP CONTROL Strategic leap control helps organizations to identify the new strategies required to cope with emerging environmental realities. It can be of different types: Strategic issue management : focuses on forthcoming development y identifying issues. Strategic field analysis: examines the nature & extent of synergy that exists or lacks between components of organizations. System modelling: computer based model that simulate the essential features of the organization & environment. Scenarios: perceives about the likely environment a firm would face in the future.