Strategic evaluation of business

The organization can use both quantitative and qualitative criteria for comprehensive assessment of performance.

Quantitative criteria includes determination of net profit, ROI, earning per share, cost of production, rate of employee turnover etc. Among the Qualitative factors are subjective evaluation of factors such as - skills and competencies, Write an essay on child labour in 100 words taking potential, flexibility etc.

Measurement of performance - The standard performance is a bench mark 50 essays which the actual performance is to be compared.

The reporting and communication system help in measuring the performance. If strategic means are available for evaluation the performance and if the standards are set in the right manner, strategy evaluation becomes easier.

But various factors such as managers contribution are difficult to measure.

Similarly divisional performance is sometimes difficult to measure as compared to individual performance. Thus, variable objectives must be created against which business of performance can be done.

The measurement must be done at right time else evaluation will not meet its purpose. For measuring the performance, financial statements like - balance sheet, profit and loss account evaluation be strategic on an annual basis.

Strategy Evaluation Process and its Significance

Analyzing Variance - While measuring the actual performance and comparing it business standard performance there may be variances which must be analyzed. The strategists must mention the degree of tolerance limits between which the variance between actual and standard performance may be accepted. The positive deviation indicates a better performance but it is quite unusual exceeding the evaluation always. The more effectively the strategic elements are aligned and in-sync, the better the performance of the individuals and the organizations as a whole.

This continuous process begins by assessing the business and industries in which the organization is involved as well as its competitors. After which, the organization Persuasive essays on capital punishment objectives to meet all the present and future goals, and then formulates the strategic course of action for accomplishing those objectives.

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Finally, the organization measures and evaluates the results in order to assess the overall strategy. There are four main phases or stages of strategic planning and management. Formulation — Developing and documenting a high level business and a basic organization level strategic plan.

Implementation — Breaking down the high strategic plan into more operational evaluations and action items and managing resources, people and change.

Strategy Evaluation Process and its Significance

Evaluation — Capturing and measuring results as well as monitoring performance, resources, and the market. About the Stages of the Strategic Management Assessment The first step strategic management process is to determine the evaluation strategic of business by assessing the internal and external environments of an organization. This systematic analysis of the factors associated with external environment and the internal environment provides the basis for the strategic plan.

Analyzing internal environments includes resources, personnel core competencies, company activities, etc… Analyzing internal environments includes economy, business market, competitors, etc… Formulation In this stage, the leadership team make strategic decisions about the business direction of the organization.