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1、Chapter9：StraiegyReview,EvNuaiion,adCOnIrolCHAPTER9STRATEGYREVIEW；EVA1.UATION.ANDCONTRO1.CHAPTEROUT1.INE TheNatureofStrategyEvaluation AStrategy-EvaluationFraiiwworic TheBalancedJicorecanJ PublishedSourcesofStrategy-EvaluationIntbnnation CharacteristicsofanEfiectiveEvaluationSystem ContingencyPlanni
2、ng Auditing 21Cenlurj,ChallengesinSlralegicManagementCHAPTEROBJECTIVESAfterstudyingIhiSchapter,youshouldbeabletodothefollowing:Describeapracticalframeworkk)revaluatingstrategies.Explainwhystrategyevaluationiscomplex,sensitive,andyetessentia)fororganizationalsuccess.Discusstheimportanceofcontingencyp
3、lanninginstrategyevaluation.DiscusstheroleOfauditinginstrategyevaluation.ExplainhowcomputersCanaidinevaluatingstrategies.DiscusstheBalancedScorecard.Discussthree2/ccnturjchallengesinstrategicmanagement.CHAPTEROVERVIEWThebestformulatedarlimplementedstrategiesbecomeobsoleteasafirmsexternalandinternale
4、nvi11nmentNchange.Itisessential,Iherelbre,thatMralegistsSyslematicallyreview,evaluate,andcontroltheexecutionofstrategics.Chapter9presentsafranworkthatcanguidemanagers*effortstoevaluatestrategic-managementactivities,tomakesuretheyareworking,andtomaketimelychanges.Managementinfbmationsystemsbeingusedt
5、oevaluatestrategiesarediscussed.Guidelinesarevesenedibrib11nulating.inlenening.andevaluatingstrategies.DoingGreatinaWeakEconomy-FamilyDollarStoresFoundedin1959bythefatherofCEOHoward1.cvinc.FamilyDollarStores(FDO)isdoinggreatintheongoingrecessionascash-strappedconsumershuntforbargains.Thecompanysseco
6、nd-quarter2009resultsexceededexpectations:Saleswereup8.7percentfromlastyeartoS2billion.FamilyDollartargetswomenshoppingforafamilythatearnslessthan$30.(NX)a188year,withstoresnearlow-andmiddle-incomecustomersinruralandurbanareasin45statesandtheDistrictofColumbia.EXTENDEDCHAIxTEROUT1.INEWITHTEACHI、Grlp
7、S1. THENATUREOFSTRATEGYEVA1.UATIONA. ImportanceofStrategyEvaluation1. Tliejurategic-managenientucessinsultsindecisionsIhalcanhavesignificantlong-lastingconsequences.ErroneousstrategicdecisionscaninflictseverePenaIIieXandcanbeexceedinglydifikult.ifnotimpossible,toreverse.2. Moststrategistsagree,there
8、tbre,thatstrategyevaluationisvitaltoanorganizationswell-being:IimelyevaluationscanalertmanagementtoproblemsorpotentialblemsIxifbreasituationbecoine$critical.3. StnitegyevaluationincludesIhrcxbasicaclivilies:a. Examiningtheunderlyingbasesofafinnsstrategy.b. Comparingexpectedresultswithactualresults.c
9、. Takingcorrectiveactionstoensuretlatertb11naweconfb11nsioplans.4. Thestrategy-evaluationstageofthest11Ucgic-managcmcntprocessisilIustnitcdinFgrc9-I.5. StrategyevaluationcanbeacomplexandsensitiveUndenaki咯TmuchemphasisonevaluatingstrategiesmaybeexpensivealCounierproduciive.Yet.looIitdeornoevaluationc
10、ancreateevenworseproblems.Slralegyevaluationisessentialtoensurethatstatedobjectivesarcbeingachieved.6. Itisimpossibletodemonstrateconclusivelythataparticularstrategyisoptimal,butitcanbeevaluatedforcriticalflaws.AsdescribedinTable9-1.therearefourcriteriaiouseinevaluatingastrategy:a. Consistencyb. Con
11、sonancec. Feasibilityd. Advantage7. Counllessrgani4ili0nshavethrivedoneyearonlytostruggleforsurvivalIbefollowingycxr.Table9-2providesCXamPlcSoforganizationaldemise.8. Thesetrendsmakestrategyevaluationincreasinglydifficultwith(bepassageoftime:a. Dramxiticincreaseinenvironmentalcomplexity.b. Difficult
12、inpredictingthefuturec. Increasingnumberofvariablesd. Rapidrateofobsolescencee. Increaseinthenumberofnx:sticandworldeventsaffectingtheorganizationf. Decreasinglimespansforplanning9. Vhetundamentalproblemfacingmanagerstodayishowtocontrolemployeesettectivelyinlightofmodernorganizationaldenarlsforgreat
13、erflexibility,innovation,creativity,andinitiativefromemployees.VTjV(VisittheNel):ThewebsiteMMM.mindick.akM?levplanhlmlKiVegexcellentinformationaMutevaluatingstrategies.VTN(VisittheNet):wwr.csuchico.edM/m即nstmiegymodUe1/Skfo46hmtdescribesthehowandwhyofstrategyevaluation,VTN(ViSiltheNet)：wcsuchico.edu
14、/mgr)u/stratemo(hdel/sld047JumelaboratesontakingCorreetiwaclions.”B. TheProcessofEvaluatingStrategies1. Stralegyevaluationisnecessaryfirallsizesandkindsoforgani/ations.StrategyCvaliwtionshouldinitiatemanagerialquestioningofexpectationsandassumptions,triggerareviewofobjectivesandvalues,andstimulatecr
15、eativityingeneratingaliema(ivesandtb11nula(ingcriteriaofevaluation.2. certainanx)uniofnumageme11bywxnderingaroundatalllevelsisessentialioe11eclivestrategyevaluation.3. Evaluatingstrategicsonacontinuousrathcrthanaperiodicbasisallowsbenchmarksofprogresstobeestablishedandnreeffectivelymonitored.4. Maiiageisandemployeesofhefirmshouldcontinuallybeawareofwgressbeing11uletowardachievingthefirmsobjectives.Ascriticalsuccessfactorschange,rgani4ili0nalmembersshouldbeinvolvedinde(e11niningappropriatecrrecliveactions.VTN(VisittheNet):hilp:wN.ofm.wa.goWbUdgetmnnage3raiegic495siraegicDan.Mfprovidesthest
