WEEK 16 - 17 Flashcards
(14 cards)
NATURE OF STRATEGY
EVALUATION
- is vital to an organization’s well-being; timely evaluations can alert management to problems or potential problems before a situation becomes critical.
Balanced Scorecard
It is a process that allows firms to evaluate strategies from four perspectives: financial
performance, customer knowledge, internal
business processes, and learning and growth.
Contingency planning
A basic premise of good strategic management is that firms plan ways to deal
with unfavorable and favorable events before they occur.
Consistency
A strategy should not present inconsistent goals
and policies.
Feasibility
A strategy must neither overtax available resources nor create unsolvable subproblems.
Consonance
refers to the need for strategists to examine sets
of trends, as well as individual trends, in evaluating strategies.
Auditing
a systematic process of objectively obtaining and
evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and
communicating the results to interested users.
Top-down approach
contend that top executives are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key
strategy decisions
Bottom-up approach
advocates argue that lower- and middle-level managers and employees who will be implementing the strategies need to be actively involved in the process of formulating the strategies to ensure their support and
commitment.
Measuring organizational performance
This activity includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives.
Revised IFE Matrix
should focus on changes in the organization’s management, marketing, finance/accounting
production/operations, R&D, and management information systems strengths and weaknesses.
Revised EFE Matrix
should indicate how effective a firm’s strategies have been in response to key opportunities and threats.
Strategy Evaluation Network
summarizes strategy-evaluation activities in terms of key questions that should be addressed, alternative answers to those questions, and appropriate actions for an organization to take.
