Strategy is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.
The strategy is a result of strategic management which is a set of managerial decisions and actions that determines the long-run performance of a corporation. Strategic management includes environmental scanning, strategy formulation, strategy implementation, and evaluation and control. Moreover, evaluation and control is involved in every stage of strategic planning and management. (Wheelen & Hunger, 2012)
Figure: Basic Elements of the Strategic Management Process
Strategic management has become very popular and ...view middle of the document...
As it is known the hardest challenge is putting the strategy into real execution. (Evans, 2010)
Failure of strategy implementation may result of several reasons. First reason is poor prioritization of goals and objectives. Strategic plans must be focused and include a manageable number of goals and objectives. (Evans, 2010) Second, poor communication may affect the overall outcome. Failure to communicate the employees, stakeholder and team members about the scope of plan execution will results in misinformation. (Aileron, 2011)
Third, lack of detail planning may result in failure of the strategic. The details of execution tactics are critical because they are the base for achieving goal outcomes. Forth, weak leadership results to improper resource and resistance to change. Leader need to be champions of change and need to help the staff understand the scope of the new strategy in order to have a successful strategy implementation. Fifth, there will be no connection between strategy and operations. The organization needs to institutionalize the connection between strategy, operations and targets, as well as performance consequences. This connection needs to take strategy into the organization and to support the performance and behavior that will result in its achievement.
The Last reason but not the least, lack of monitoring from the management on the strategy from the first phase to the last phase. Most of management meetings only focus on day-to-day operations, rather than on strategic issues. Top management should always include the strategy at meetings which allows leaders to step back and see the organization through a ‘big picture’. Leaders must ask, “What have you done this week to implement the strategy?” and frequently review progress. (Meyer, 2007)
Monitoring is part of the Strategic evaluation and control phase. These activities are continuous activities done from the first stage of strategic management till the end phase which is the implementation. It is important for the top management to generate feedback through monitoring and evaluating the process activities which will help to take the corrective actions at the right time.
The strategy evaluation is the central to everything in strategic management. Evaluation and control mechanisms are set in place to inform every stage of the strategic management process. They are a means of collecting whatever information may needed to compare plans against actual events, to ensure that things are working well, and to anticipate, or correct, any faults or weaknesses in the system. (Strategic evaluation and control, 2003)
The measurement of performance is a crucial part of evaluation and control. The lack of quantifiable objectives or performance standards and the inability of the information system to provide timely and valid information are two obvious control problems. According to Meg Whitman, past- CEO of eBay, “If you can’t measure it, you can’t control it.” (Wheelen & Hunger, 2012)...