Slide 2 - Since strategy evaluation is the last phase of the strategic management process, the

managers/strategist needs to assure that the strategic choice is properly implemented and meet the
objectives of the organization.

Slide 3 - Since strategy evaluation is the last phase of the strategic management process, the
managers/strategist needs to assure that the strategic choice is properly implemented and meet the
objectives of the organization.

Slide 4 - The strategic management results in decision that can have significant or long-lasting
consequences and having an erroneous strategic decision can inflict severe penalties and can be
exceedingly difficult. Therefore, most strategist agree that strategy evaluation is: vital to an
organization etc.

Slide 5 - The strategy-evaluation process includes three basic activities

Slide 6 - Strategy evaluation requires adequate and timely feedback and must show a satisfactory in
results. That is why strategy evaluation is complex and sensitive undertaking/overemphasis can be
costly & unproductive.

Strategy Evaluation is essential to ensure that stated objectives are being achieved. And strategist need
to create an organizational culture wherein strategy evaluation is viewed as an opportunity to make the
firm better.

Slide 7 - In many organizations, strategy evaluation is simply an appraisal of how well an organization
has performed. It talked about the questions – have assets increased? Etc.

Slide 8 - In many organizations, strategy evaluation is simply an appraisal of how well an organization
has performed. It talked about the questions – have assets increased? Etc.

Slide 12 - Strategy evaluation is becoming increasingly difficult with the passage of time, for many
reasons. Domestic and world economies were more stable in years past, product life cycles were longer,
product development cycles were longer, technological advancement was slower, change occurred less
frequently, there were fewer competitors, foreign companies were generally weak, and there were
more regulated industries.

Slide 13 - Strategy evaluation is necessary for all sizes and kinds of organizations.

Slide 14 - reviewing the underlying bases of an organization’s strategy could be approached by

developing a revised EFE Matrix and IFE Matrix. A revised IFE Matrix should focus on changes in the
organization’s management, marketing, finance and accounting, production and operations, research
and development (R&D), and management information systems (MIS) strengths and weaknesses. A
revised EFE Matrix should indicate how effective a firm’s strategies have been in response to key
opportunities and threats.

Slide 15 - Numerous external and internal factors can prevent firms from achieving long-term and
annual objectives. Externally, actions by competitors, changes in demand, changes in technology,
economic changes, demographic shifts, and governmental actions may prevent objectives from being
accomplished.
External opportunities and threats and internal strengths and weaknesses that represent the bases of
current strategies should continually be monitored for change. It is not a question of whether these
factors will change, but rather when they will change, and in what ways

Slide 16 - Another important strategy-evaluation activity is measuring organizational performance

This activity includes

Slide 17 - Determining which objectives are most important in the evaluation of strategies can be
difficult. Strategy evaluation is based on both quantitative and qualitative criteria.

Quantitative criteria commonly used to evaluate strategies are financial ratios, often monitored for each
segment of the firm

Strategists use financial ratios to make three critical comparisons

Slide 20 - Thus, qualitative criteria are also important in evaluating strategies. Human factors

Slide 22 - The Balanced Scorecard is an important strategy-evaluation tool that allows firms to evaluate

strategies from four perspectives

Slide 23 - The strategy-evaluation process must exhibit several characteristics to be effective.

Meaning - they should specifically relate to a firm’s objectives

Generates useful - They should provide managers with useful information about tasks over which they
have control and influence.

on occasion and in some areas, managers may need information on a daily or even continuous basis

Strategy-evaluation processes should be designed to provide a true picture of what is happening.