Techniques of strategic evaluation

Strategy evaluation is the final step of strategy management process.

The key strategy evaluation activities are:
Appraising internal and external factors that are the root of present strategies,
Measuring performance, and taking remedial / corrective actions.
Evaluation makes sure that the organizational strategy as well as its implementation meets the
organizational objectives.

Nature of the strategic evaluation

During the control process is to test the effectiveness of strategy.
Strategic management process, the strategists formulate the strategy to achieve a set of objectives
and then implement the strategy.
To be a way of finding out whether the strategy being implemented will guide the organisation
towards its intended objectives

Importance of Strategic Evaluation

Strategic evaluation can help to assess whether the decisions match the intended strategy
requirements.
Strategic evaluation, through its process of control, feedback, rewards, and review, helps in a
successful culmination of the strategic management
The process of strategic evaluation provides a process a considerable amount of information and
experience to strategists that can be useful in new strategic planning.

Techniques of Strategic Evaluation

1) Gap Analysis one strategic evaluation technique used to measure the gap between the
organizations current position and its desired position. Analysis is used to evaluate a variety of
aspects of business, from profit and production to marketing, research and development and
Typically, a variety of financial data management information systems is analyzed and compared
to other businesses within the same industry to evaluate the gap between the organization and its
strongest competitors.

2) The SWOT analysis is another common strategic

SWOT Analysis evaluation technique used as a part of the strategic management process. The
SWOT analysis evaluates the organizations strengths, Strengths and weaknesses are
weaknesses, opportunities and threats. Internal factors, while opportunities and threats are
external factors. This identification is essential in determining how best to focus resources to
take advantage of strengths and opportunities and combat weaknesses and threats.

3) PEST Analysis common strategic evaluation technique is the PEST analysis, which
identifies the political, economic, social and technological factors that may impact the
organizations ability to achieve its objectives. Political factors might include such aspects as
impending legislation regarding wages and benefits, financial regulations; etc Economic factors
include all shifts in the economy, while social factors may include demographics and changing
attitudes. These are also inevitable as technology becomes more advanced each day. Are all
external factors, which are outside of the organizations control but which must be considered
throughout the decision making process.
4) Benchmarking thats often used to evaluate how close the organization has come to its
Organizations final objectives, as well as how far it has left to go. May benchmark themselves
against other organizations within the same industry, or they may benchmark themselves against
their own prior.

A variety of performance measures, as well as policies situation. And

procedures may be evaluated regularly to identify where adjustments are necessary to maintain
the sustainable competitive advantage.