CHAPTER 9

Question 1

basic activities of strategy evaluation

Answer 1

• examine underlying base of firm strategy
• compare expected results with actual results
• take corrective actions to ensure performance conform the plan

Question 2

why strategy evaluation become more difficult nowdays

Answer 2

• domestic and world economy are more irrelevant
• product life cycle are shorter
• technological advancement
  -change occurs rapidly
  -competitors around globally

Question 3

corrective actions are needed except when

Answer 3

• external and internal factor does not changed
• the firm is progressing satisfactorily towards achieving stated objectives

Question 4

review bases of strategy

Answer 4

• how does competitors react to our strategy
• how does competitors strategies changed
• have major competitors strength and weaknesses change
  -why are competitors making those changes
  -why some competitors strategies more successful than others

Question 5

measuring organizational performance

Answer 5

• comparing the firm performance over all different time period
• comparing the firm performance to competitors
  -comparing the firm performance to industry average

Question 6

balanced scorecard

Answer 6

• is a strategy evaluation and control technique
• wide variation of balanced scorecard is used
• techniques is based on the need to balance financial measures

Question 7

BOD: Governance issues

Answer 7

BOD is group of individuals at the top of organization with oversight and guidance over management
- act of oversight and guidance are called governance

Question 8

4 challenges of facing strategy

Answer 8

• is the process more of an art of science?
• should strategy be visible or hidden to stakeholder
• contingency planning
• auditing

Question 9

contigency plan

Answer 9

• alternative plan that can be put into effect if certain way events do not occur as expected
• if a major competitor withdraw from particular market as intelligent report indicate, what actions should our firm take?
• if our sales objective does not meet, what actions should our firm take?

Question 10

auditing

Answer 10

systematic process of objective obtaining and evaluating evidence regarding assertions about economic actions and events to certain degree of correspondence.