Question

According to your textbook, the strategy-evaluation process consists of three basic activities:

1. Examine the underlying bases of a firm's strategy.
2. Compare expected results with actual results.
3. Take corrective actions to ensure that performance conforms to the plan.

Answer the following questions:  

• Which of the three strategy-evaluation activities do you think is most critical to be performed well? Why?

Answer 1

Answer:

I think Take corrective actions to confirm that performance conforms to the setup. It is most crucial to be performed well the ultimate strategy-evaluation activity, taking corrective actions, needs creating changes to reposition a firm competitively for the long run. Samples of changes that will be required square measure neutering associate organization’s structure, substitution one or a lot of key people, commercialism a division, or redaction a business mission. different changes might embrace establishing or redaction objectives, production new policies, issue stock to lift capital, adding further salespersons, allocating resources otherwise, or developing new performance incentives. Taking corrective actions doesn't essentially mean that existing ways are abandoned or maybe that new ways should be developed. No organization will survive alone; no organization will escape modification. Taking corrective actions is important to stay a corporation on target toward achieving declared objectives. Strategy analysis enhances the associate organization’s ability to adapt with success to dynamic circumstances. This is often observed by specialists as company lightsomeness. Taking corrective actions raises employees’ and managers’ anxieties. Corrective actions ought to place a corporation during a higher position to capitalize upon internal strengths; to require advantage of key external opportunities; to avoid, reduce, or tone down external threats; and to enhance internal weaknesses. Corrective actions ought to have a correct time horizon associated with an applicable quantity of risk. They ought to be internally consistent and socially accountable. Maybe most significantly, corrective actions strengthen the associate organization’s competitive position in its basic trade. Continuous strategy analysis keeps strategists near to the heartbeat of a corporation and provides data required for an efficient strategic management system.