OVERVIEW

Strategy Evaluation is the final step in strategic management.

Strategies are subject to future modifications because Internal & External factors are constantly changing.

Success today is no guarantee of success tomorrow!

So Strategy evaluation is the primary means for obtaining information when strategies are not working well.

S.E ASSESSMENT MATRIX

Strategy Evaluation Assessment Matrix indicates:
Key questions that should be addressed. Alternative answers to those questions. Appropriate actions for an organization to take.

In Strategy Evaluation Assessment Matrix actions are always needed except when:
Internal & External factors have not significantly changed. Firm is progressing satisfactory towards achieving stated objectives.

Cont...

Have Major Changes Have Major Changes Occurred in firms Occurred in firms internal strategic external strategic position? position? No Yes Yes No Yes No

Has the firm progressed satisfactorily toward Achieving Its Stated Objectives? No Yes No

Result

No

No

Yes

S.E FRAMEWORK
Strategy Evaluation Framework facilitate the accomplishment of annual & long-term objectives by the following three activities:
Reviewing internal & external factors. Measuring performance. Taking corrective actions.

It allows an organization:
To capitalize on internal strengths as they develop. To exploit external opportunities as they emerge. To recognize & defend against threats. To tone down internal weaknesses before they become injurious.

Cont...
ACTIVITY 1. REVIEW UNDERLYING BASES OF STRATEGY Prepare revised IFE Matrix Compare revised to existing IFE Matrix Prepare revised EFE Matrix Compare revised to existing EFE Matrix

Do significant differences occur?

Yes

ACTIVITY 2. MEASURE ORGANIZATIONAL PERFORMANCE

ACTIVITY 3. TAKING CORRECTIVE ACTIONS

Comparer planed to actual progress toward meeting stated objectives

Do significant differences occur?

Yes

Continue present course!

REVIEWING BASES OF STRATEGY

Internal strengths & weaknesses and external opportunities & threats represent bases that should be monitored continually for changes.

Revised IFE Matrix

Indicates how effective a firms strategies in response to key strengths & weaknesses. Addresses questions such as: Are our internal strengths & weaknesses still strengths & weaknesses? Have we added other internal strengths & weaknesses? If so what are they?

Revised EFE Matrix

Reveals how effective a firms strategies in response to key opportunities & threats. Deal with questions such as: Are our external opportunities & threats still opportunities & threats? Are there now other opportunities & threats? If so what are they?

Cont...
Measure Organizational Performance
Compare planned to actual performance toward meeting stated objectives. But there are several internal & external factors that can prevent achieving long-term & annual objectives.

Internal Factors
Ineffective strategies chosen. Poor implementation activities. Too optimistic objectives.

External Factors
Competitors actions. Changes in demand. Changes in technology. Economic changes. Govt actions.

Cont...
Thus failure to achieve objectives may not be the result of unsatisfactory work by managers & employees. Sometimes managers & employees on the front-lines discover inappropriate strategies well before strategists. Organizations desperately need to know as soon as possible when their strategies are not working, in order to shape their own future rather than allowing it to constantly shaped by other forces.
Top Management
(Formulation)

Middle Management
(Implementation)

First-Line Management
(Evaluation)