chap 8: strategic control mechanism Flashcards
the process of monitoring the various strategies of the organization and determining whether there is a parallelism between the organizational milieu and that of the environment
STRATEGIC CONTROL
is designed to check systematically and regularly whether the arguments set during the planning and Implementation processes are still binding. When strategies are formulated, these are based on certain premises or assumptions. However, since the external environments are Continuously changing, there is a need to closely monitor the set strategies and make the necessary change or changes when needed.
Presupposition control
is designed to check systematically and regularly whether the arguments set during the planning and Implementation processes are still binding. When strategies are formulated, these are based on certain premises or assumptions. However, since the external environments are Continuously changing, there is a need to closely monitor the set strategies and make the necessary change or changes when needed.
Presupposition control
is applied to evaluate whether the intermediate strategies are consistent with the overall strategy. In many instances, a strategy consists of small activities that complement each other and lead to the ultimate attainment of the mother strategy. In cases when these transitional activities become misaligned for one reason or another, then there is a need to review the reasons for such occurrence.
Implementation control
is a monitoring system whereby a broad range of occurrences inside and outside the organization threatens the implementation of an organization’s strategy. means shadowing, observing, and scrutinizing the milieu. It demands constant awareness, consciousness, and knowledge of how the strategy implementation is faring
Strategic surveillance
is a special type of strategic control that is applied when immediate reconsideration of an organization’s strategy/strategies is pursued. This is called for when unusual events happen and there is no choice but for the organization to attend to it and do the corresponding changes.
Vigilance control
is the traditional way of coking at strategic monitoring. is followed progressively by the designed strategy implementation. Once the strategies have been employed, it is only then that strategic monitoring is carried out.
Sequential strategic control
is an approach that shows the communicating and collaborative nature of the processes of strategy formulation. strategy Implementation, and strategic control. it presents the interrelationships of each of these processes with each other. In other words, as strategies are being formulated, strategy implementation is constantly being evaluated.
Interactive strategic control
is an approach that shows the communicating and collaborative nature of the processes of strategy formulation. strategy Implementation, and strategic control. The interactive strategic control presents the interrelationships of each of these processes with each other. In other words, as strategies are being formulated, strategy implementation is constantly being evaluated.
Interactive strategic control
is a combination of the sequential and interactive approaches Although strategy formulation, strategy implementation, and strategic monitoring appear to be sequential, it is essentially interactive. Constant feedback are effected with respect to the formulated and implemented strategies.
Feedback strategic control
is the ratio of the results derived from the resources invested by an organization, or
Performance
is the ratio of the results derived from the resources invested by an organization, or
Performance
There are different ways of measuring _ These Include profitability measures, liquidity measures, gearing (risk) measures, and other investor’s measures,
financial performance.
show the organization’s or company’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period. These are gross profit margin, net profit margin, return on capital employed (ROCE) and asset Turnover.
Profitability metrics
show the extent to which a company has money to meet immediate obligations. Current ratio, inventory holding period, receivables (debtor) collection Period, and payables (creditor) penod are forms of liquidity measures.
- Liquidity measures
are determinants of financial leverage. it measures the percentage of capital employed that is financed by debt and kong-term financing. The higher the gearing ratio, the higher the dependence on borrowing and long-term financing; and the lower the gearing ratio, the higher the dependence on equity financing. Another gearing measure is interest cover.
Gearing measures
are the emphasis of every organization that aims to achieve success.
Efficiency/Productivity Performance (Measures of success are quantitative. Efficiency and productivity are measurable concepts.)
is normally defined as the ability to do something or produce something without wasting materials, time, or energy. It is employing the least amount of input to create the maximum amount of output.
Efficiency/productivity
They are used interchangeably and may be expressed in the form of number of units produced, number of hours consumed, number of defects reduced, time saved, amount of pesos earned, amount of savings made, and others.
Efficiency/Productivity Performance
In addition to financial performance, feedback can be adequately actualized through
market performance metrics.
Examples include market growth rate, market share, net marketing contribution, marketing return on sales (ROS) marketing return on investment (ROI), and customer retention.
Market Performance
Because of the hypercompetition permeating in the environment, hot to mention, the dynamic outlook of organizations in dealing with their products and services and against one another, effectiveness has Incorporated today challenging orientation. a deeper and more
People Performance
It has adopted a renewed, emphatic, and broader perspective, concentrating and focusing more on people and how they operationally and uniquely do things.
People Performance
Gauging and analyzing differentiated people performance are expressed through indices.
People Performance
