Page 261 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 14: Strategic Evaluation and Control

environmental factors, these factors have considerable influence over the success of the Notes
strategy because strategies are generally based on key assumptions about them.

Example: A firm may assume massive increase in demand, and embark on an expansion
plan. If suddenly there is recession and demand for the products of the firm fall down, it may
have to change its strategic direction.
2. Industry Factors: Industry factors also affect the performance of a company. Competitors,
suppliers, buyers, substitutes, new entrants etc. are some of the industry factors about
which assumptions are made. If any of these assumptions go wrong, strategy may have to
be changed.

Strategic Surveillance

Strategic surveillance is a broad-based vigilance activity in all daily operations both inside and
outside the organisation. With such vigilance, the events that are likely to threaten the course of
a firm’s strategy can be tracked. Business journals, trade conferences, conversations, observations
etc. are some of the information sources for strategic surveillance.

Special Alert Control

Sudden, unexpected events can drastically alter the course of the firm’s strategy. Such events
trigger an immediate and intense reconsideration of the firm’s strategy.

Example: The tragic events of September 11, 2001, created havoc in many US companies,
especially the airline and hotel industry. Sudden acquisition of a leading competitor or an
unexpected product difficulty (like defective tyres of Firestone) etc. may shatter a firm’s strategy
and require a rapid reconsideration of the strategy. Generally, firms develop contingency plans
along with crisis teams to respond to such sudden, unexpected events.

Implementation Control

Strategy implementation takes place as a series of steps, programmes, investments and moves
that occur over an extended period of time. Resources are allocated, essential people are put in
place, special programmes are undertaken and functional areas initiate strategy related activities.
Implementation control is aimed at assessing whether the plans, programmes and policies are
actually guiding the organisation towards the predetermined objectives or not. Implementation
control assesses whether the overall strategy should be changed in the light of the results of
specific units and individuals involved in implementation of the strategy. Two important methods
to achieve implementation control are:
1. Monitoring strategic thrusts

2. Milestone reviews
1. Monitoring Strategic Thrusts: Strategic thrusts are small critical projects that need to be
done if the overall strategy is to be accomplished. They are critical factors in the success of
strategy.
One approach is to agree early in the planning process on which thrusts are critical factors
in the success of the strategy. Managers responsible for these -implementation controls
will single them out from other activities and observe them frequently. Another approach
is to use stop/go assessments that are- linked to a series of these thresholds (time, costs,
success etc.) associated with a particular thrust.

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