Lesson 10

Question 1

is as significant as strategy formulation because it throws light on the
efficiency and effectiveness of the comprehensive plans in achieving the desired results.

Answer 1

Strategy Evaluation

Question 2

is the
final phase of strategic management

Answer 2

Strategic Evaluation

Question 3

The managers can also assess the appropriateness of the past strategy in today’s dynamic
world with socio-economic, political and technological innovations.

Answer 3

False

Question 4

The significance of ____ lies in its capacity to co-ordinate the task performed by
managers, groups, departments, etc, through control of performance.

Answer 4

strategy evaluation

Question 5

is significant because of various factors such as - developing inputs for new
strategic planning, the urge for feedback, appraisal and reward, development of the strategic
management process, judging the validity of strategic choice etc.

Answer 5

Strategic Evaluation

Question 6

includes determination of net profit,
ROI, earning per share, cost of production, rate of employee turnover etc.

Answer 6

Quantitative criteria

Question 7

Among the _______ are subjective evaluation of factors such as - skills and
competencies, risk taking potential, flexibility etc.

Answer 7

Qualitative factors

Question 8

is a bench mark with which
the actual performance is to be compared. The reporting and communication system
help in measuring the performance.

Answer 8

standard performance

Question 9

T/F

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

Answer 9

True

Question 10

T/F

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 must be prepared on an monthly basis.

Answer 10

False

Question 11

T/F

The strategists must mention the degree of tolerance limits between which the variance
between actual and standard performance may be accepted.

Answer 11

True

Question 12

The ______indicates a better performance but it is quite unusual exceeding
the target always.

Answer 12

positive deviation

Question 13

The _____ is an issue of concern because it indicates a
shortfall in performance.

Answer 13

negative deviation

Question 14

T/F

If the performance is consistently more than the desired performance, the strategists
must carry a detailed analysis of the factors responsible for such performance.

Answer 14

False

Question 15

If the strategists discover that the organizational potential does not match with the
performance requirements, then the standards must be lowered.

Answer 15

True

Question 16

T/F

Another rare and drastic corrective action is reformulating the strategy which requires
going back to the process of strategic management, reframing of plans according to new
resource allocation trend and consequent means going to the beginning point of
strategic management process.

Answer 16

True

Question 17

Give the steps in the process of Strategy Evaluation

Answer 17

1. Fixing benchmark of performance
2. Measurement of performance
3. Analyzing Variance
4. Taking Corrective Action