TEAM 10.pptx
- 1. PRESENTING BY TEAM--10 RAGUL KUMAR (21414047) SAI VEDHAPURISHWARAR V (21414049) SANITHA M (21414050) SANTHOSH (21414051) SHANIR M (21414052)
- 2. What is Strategic control? The selection of an organizational strategy and matching structure for the organization. Creation of control systems to monitor and evaluate strategic performance of the organization. Strategic control deals with monitoring the strategy after it has been executed in the organization. This involves taking stock of the strategy and making any necessary corrections or clearing out any problems seen in its implementation. The authors Newman and Logan have used the term "STEERING CONTROL" to point out certain critical aspects of strategic control.
- 3. Strategic Control in Strategic Management Strategic controls are by and large subjective in nature and are used to see if the firm is using the correct strategies to take advantage of opportunities in its external environment and also to maintain its strength with respect to competition. Strategic control requires a high level of communication between the managers who measure the success of the company's strategy and those who actually execute the strategy. For example, at the business level strategy execution strategic controls measure if the primary and support activities are being implemented properly. When the execution is at a corporate level, then strategic control envisages if the various shared factors like knowledge, markets and technologies. are leveraged properly across the various businesses of the organization. When the corporate headquarters review the various diversification strategies then they must have an in depth knowledge of the various business level strategies.
- 4. PROCESS OF STRATEGIC CONTROL 1. What to control ? These are normally decided based on the objectives, mission, vision and the goal setting done as a result of planning. It is necessary for managers to decide what they must control because it is not possible to monitor and control every activity 2. Set control standards Standards are nothing but targets against which the actual performance can be measured to judge if the performance is up to mark or not. Standards represent the benchmark against which the organization can measure its current performance, define future targets and also evaluate historical performances.
- 5. Contd …….. Once the standards are set, the organization needs to set upper and lower limits for the standard. These are also called TOLERANCE LIMITS. These targets also have to be in line with the organizational goals and objectives. For example, standards could pertain to how the good is manufacturing or how the service needs be imparted or how the distribution of the product should happen ? 3. Measure performance To measure the output or performance and compare against the standard. In some cases it could be a normal observation of some events whereas in other it may involve detailed analysis. The rapid growth of computers and IT has also made it possible for managers to access latest and the most analytical performance reports. These should be analysed carefully by managers and should form the basis for concrete action.
- 6. 4. Compare Performance to Standards : If the earlier stages are done properly and systematically in the organization, then the actual comparison of the performance and the standard is a very easy process. There can be problem especially if some the standards pertain to behavioral aspects. The measurement in these cases can often be impacted by extraneous variables which are beyond the control of the organization. 5. Determine the Reasons for the Deviations : Once the divergence is seen in the actual performance and the standard, the next is to understand why the divergence has been caused. The organization needs to examine if the shortfall in achievement is due to genuine shortcomings in the internal factors of the organization or because of external events which are not possible for the organization to control. The following checklist can be used : •Are the standards in line with the organizational objective and strategies? •Are the objectives that have been decided realistic, given the external environment of the organization? •Do the strategies that have been decided by the organization, seem practical in the external environment? •Does the organization have the right organization structure and the right mix of resources to achieve its objectives and strategies? •Is the execution of the organisation proper to achieve the standard decided?
- 7. 6) Take Corrective Action : The last step in the process is to initiate remedial action. Managers can do one of the following : •Do nothing •Rectify the actual performance •Change the standard Making no change is advisable when no significant deviation is seen between the actual performance and the standard. When the deviation is significant, then managers need to decide on a course of action. The remedial action is dependent on what kinds of deviations are seen and what kind of autonomy the managers have to take remedial action. The deviations could be because of many reasons it could be because of faulty strategy. design or wrong implementation. Each of these requires a different action plan by the organization.
- 8. TYPES OF STRATEGIC CONTROL Premise control Implantation control Strategic surveillance Special alert control Premise control: Premise control tries to examine if the assumptions which were made in the initial stages of the strategic planning exercise still hold good. Implementation Control : Implementation control is that aspect of strategic control which oversees the governance of the overall decided strategy in accordance with the decided principles. It examines if the strategy needs to be changed in light of events which happen in the organization's external environment.
- 9. Strategic Surveillance : In this the organization keeps track of a set of critical events/ activities both within and outside the organization. These are very critical to the success of the strategy. The idea behind strategic surveillance is to encourage the general data gathering and analysis of a set of critical activities so that the organization is not surprised by sudden occurrences in its environment. Special Alert Control : The organization implements special alert control by implementing contingency plans and initiating specific roles and responsibilities in the organization to handle sudden events in the environment. This can also be considered crisis management. For example, a natural catastrophe like the Earthquake which rocked Nepal in 2015 and to which the Government of India reacted by sending the National Disaster Relief Force to Nepal.
- 11. IMPORTANCE OF STRATEGIC CONTROL
- 12. IMPORTANCE OF STRATEGIC CONTROL Some of the advantages of strategic control are 1) Control and Efficiency : To measure the efficiency of the production process the managers need to know how efficiently the inputs are being combined to produce the required output. This information is provided the managers through the control system in the organization. These control systems provide managers means to measure how efficient the strategy is. 2) Control and Quality : Competition nowadays increasingly focused on improving the quality of the goods and services being produced. Products compete within their segments and sub-segments on the basis of features, design and quality. The managers can keep a track on the quality of their products by keeping track of customer complaints received or the customer satisfaction level
- 13. 3) Control and Innovation : Strategic control also helps the organization to increase the level of innovation in the organization. Successful companies like Nokia or Apple create the right environment in the work place which encourages creative thinking and they have incorporated these aspects in their strategic control systems. This helps in creating the right culture for risk taking in these organizations. 4) Control and Responsiveness to Customers : Strategic control also helps organizations to measure the level of customer satisfaction by evaluating how well the employees are in the customer facing jobs (like customer care and retention). The organization can also use the information generated to impart training to employees to improve their weak areas so that the proper service can be provided to the customer There is also an indirect pressure on employees to improve their responsiveness to customers when they know that their behavior is being tracked.
- 14. EXAMPLE SCENARIO IN TELECOM INDUSTRY
- 22. PAST VS CURRENT BRANDS