STRATEGIC BEWERTUNG

Is the company ready for growth?

Is the company in the game?

Is the company capability contrained?

Is the company distracted?

Is the company strategically drift, too reactive?

 

The process of Strategy Evaluation consists of following steps-

  1. Fixing benchmark of performance - 

- what benchmarks to set
- how to set them 
- how to express them
- special requirements for performing

 

Quantitative criteria

  • net profit
  • ROI
  • earning per share
  • cost of production
  • rate of employee turnover

 

Qualitative factors

  • skills and competencies
  • risk taking potential
  • flexibility etc.

 

  1. Measurement of performance - 
  • Management Committment
  • Performance
  • Financial Statements

 

  1. Analyzing Variance -
  • degree of tolerance
  • limits
  • positive deviation
  • negative deviation
  • causes of deviation 
  • corrective action

 

  1. Taking Corrective Action -
  • plan for a corrective action
  • detailed analysis of the factors responsible
  • organizational potential
  • standards must be lowered (or raised)
  • reformulating the strategy
  • reframing of plans according to
    • new resource allocation
    • trend
    • consequent means