Subject: (Strategic Management Planning & Control)

1) The process of strategic evaluation starts with formulating strategic decisions and
plans per the available resources and analyzing the business environment to
achieve the desired organizational objectives. After developing the strategic plan,
the next step is effectively implementing strategic plans within available
resources to achieve the desired result within the stipulated time. Meanwhile,
strategic controlling is the process of monitoring and checking the performance of
strategic decisions, ensuring the effective implementation of strategic plans and
policies, identifying problems, and taking corrective actions whenever required to
achieve the desired organizational objectives. In other words, it describes the
controlling system for the effective implementation. Discuss the Concept of
Strategy Evaluation by focusing on the following:
a) The 3-Step Model of Strategic Control Process (10 points)
Strategic control is an evaluative process aimed at ensuring the accomplishment of your
objectives. It centers on two key questions: (1) Is the strategy being executed as
intended? and (2) Are the outcomes of the strategy in line with the desired results? It is
a framework used to ensure that a company's strategy is implemented effectively and
that it stays aligned with its goals and objectives. This model helps managers monitor
progress and make necessary adjustments to achieve the desired outcomes.
The first step is premise control. Premise Control is a process designed to assess
whether the assumptions and conditions established at the start of the planning and
implementation phases remain valid. It involves regularly checking the external and
internal factors that could impact the strategies in place. The first aspect of premise
control focuses on monitoring the structure and reporting relationships to ensure they
align with the evolving conditions and strategies. It is a critical aspect of strategic
management that involves regularly evaluating the assumptions or premises upon
which a company’s strategies are based. As organizations implement their strategies,
it's essential to ensure that the foundational assumptions made during the planning
phase still hold true. Premise control helps identify and address any changes in internal
or external conditions that could impact the effectiveness of a strategy.
1. Understanding the Premises:
Premises are the assumptions, forecasts, or expectations that underpin a strategy.
These could be related to market conditions, economic trends, technological
developments, customer preferences, or the competitive landscape. For example, a
company may assume that consumer demand for its product will increase by 10% over
the next year or that raw material prices will remain stable.
2. Purpose of Premise Control:
The main objective of premise control is to regularly verify whether these assumptions
are still valid and whether any changes in the external or internal environment require
adjustments to the strategy. If the premises upon which the strategy was built no longer
hold true, the strategy may need to be revised or adapted to align with the new reality.
3. Key Elements of Premise Control:
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Premise control involves tracking both external conditions (e.g., economic shifts,
industry trends, government regulations) and internal factors (e.g., organizational
capabilities, resource availability) that could affect the assumptions made during
strategy formulation. It provides a feedback loop to decision-makers, informing them
when assumptions are no longer accurate, and adjustments need to be made. For
instance, if the premise that a new technology would lead to cost reductions turns out to
be false, the company may need to reevaluate the technology investment.
4. Approaches to Premise Control:
There are several ways to implement premise control effectively:
Environmental Scanning: Constant monitoring of the external environment for any shifts
in market trends, competitor strategies, or regulatory changes.
Market Research: Regular feedback from customers, suppliers, and industry reports
can provide valuable insights into whether assumptions about customer preferences or
supply chain conditions remain accurate.
Internal Audits: Evaluating internal capabilities, resources, and performance to ensure
that the organization’s capacity aligns with the planned strategy.
5. Examples of Premise Control in Action:
Economic Assumptions: A company may assume stable economic growth, but if there’s
an economic downturn, premise control will flag this change and may prompt the
organization to adjust its forecasts, budgets, or production plans.
Technological Assumptions: If a company assumes that a certain technology will be
widely adopted within a year, but adoption is slower than expected, premise control
might lead to a shift in marketing or production strategies.
6. Benefits of Premise Control:
Risk Mitigation: By keeping track of the validity of assumptions, organizations can
quickly react to changes in the environment and avoid potential risks associated with
outdated assumptions.
Strategic Flexibility: Premise control helps organizations remain adaptable. By
constantly monitoring and adjusting assumptions, companies can maintain flexibility in
the face of changing conditions.
Enhanced Decision-Making: Premise control provides management with accurate, up-
to-date information, improving the quality of decision-making as the organization moves
forward with its strategy.
The second step is implementation control. Implementation Control refers to the
process of reviewing the significant milestones and developments in the execution of a
strategy or program. The purpose of this review is to assess the progress of the strategy
and determine whether it is on track to achieve its objectives. It helps decision-makers
decide if the implementation should continue as planned, if adjustments are needed, or
if the strategy should be refocused or realigned altogether.
Key Aspects of Implementation Control:
Monitoring Key Milestones:
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Implementation control involves tracking the progress of key milestones or deliverables
in the execution of a strategy. These milestones are often tied to specific goals or
objectives outlined during the strategic planning phase. Monitoring these highlights
helps ensure that the strategy is being implemented as planned.
Making Strategic Decisions:
Implementation control serves as a decision-making tool. It provides the necessary
information to determine whether the strategy should continue, be refocused, or
realigned. If the implementation is not yielding the expected results, it might be
necessary to adjust the approach, shift resources, or even change the overall strategy.
Correcting Course as Needed:
One of the most important functions of implementation control is its role in identifying
issues early on. If problems such as resource shortages, process inefficiencies, or
external factors (like market shifts) are hindering progress, corrective actions can be
taken to steer the strategy back on track.
Benefits of Implementation Control:
Regular reviews keep the team accountable for meeting deadlines, staying within
budgets, and adhering to the strategic plan. It also provides management with the
information needed to make informed decisions about whether to continue, adjust, or
revise the implementation approach. Through regular reviews, organizations can remain
flexible, adapting to changes or unforeseen circumstances that may affect the strategy’s
success. For example, if a company is implementing a new product line, Implementation
Control might involve reviewing the initial market response, sales performance, and
feedback from customers. If the product is not gaining traction as expected, the
company might decide to refocus its marketing strategy, adjust the product design, or
explore new distribution channels. Alternatively, if the product is performing well, the
company might decide to accelerate the rollout or expand the product range.
In summary, Implementation Control is an ongoing process that ensures the strategic
plan stays on track, providing opportunities for adjustments and course corrections
based on real-time performance and environmental changes.
The last step is strategic surveillance. Strategic Surveillance is a form of monitoring that
involves keeping an eye on a wide range of both external and internal events that could
potentially influence or impact a company’s strategy. It is a proactive approach aimed at
detecting changes or emerging trends that could affect the organization's strategic
direction. In many ways, strategic surveillance overlaps with environmental scanning, as
it involves continuously scanning the business environment for critical developments
that may require adjustments to the company’s strategies.
Key Aspects of Strategic Surveillance:
Unlike other forms of control that focus on specific aspects of strategy (such as
performance or progress), strategic surveillance takes a broader view. It involves
tracking a wide range of factors, both external (e.g., market trends, economic shifts,
regulatory changes) and internal (e.g., organizational performance, internal capabilities,
culture). Strategic surveillance helps organizations identify potential risks or
opportunities before they fully develop. By continuously monitoring the environment,
companies can anticipate challenges or emerging trends that might disrupt their current
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strategy, giving them time to make necessary adjustments. While environmental
scanning specifically focuses on analyzing external factors such as economic
conditions, technological changes, political shifts, and competitive movements, strategic
surveillance includes both external and internal factors. This broad approach ensures
that companies are not only responsive to changes outside the organization but are also
aware of internal dynamics that could influence strategy.
Finally, one of the key purposes of strategic surveillance is to safeguard existing
strategies. By consistently observing both the external environment and internal
operations, the organization can ensure that its current strategy remains relevant and
resilient in the face of changes. If an external factor (e.g., new competitors or shifting
regulations) or internal factor (e.g., changes in leadership or workforce capabilities)
threatens the established strategy, strategic surveillance helps identify these threats
early.
b) The Six (6) Stages of Feedback from the Strategy Evaluation (10 points)
The Six Stages of Feedback from Strategy Evaluation involve assessing the
effectiveness of a strategy and making necessary adjustments based on performance
and feedback. The stages include setting performance standards, measuring actual
performance, comparing performance with standards, analyzing deviations, taking
corrective actions, and incorporating feedback into strategy refinement. This continuous
process ensures that strategies remain aligned with organizational goals and
responsive to changing internal and external factors.
1. Find out what to control
It refers to the key areas or elements of the organization that need to be
monitored to ensure the strategy is effectively executed and aligned with the
organizational objectives. These control mechanisms help in evaluating whether
the strategy is on track, and if not, to take corrective actions.
2. Come up with control standards
Control standards are essential benchmarks or criteria used to measure the
performance of a strategy or operational process. They provide a framework to
evaluate whether the organization is on track to achieve its goals. These
standards not only guide target-setting but also help establish acceptable
performance ranges or tolerances.

3. Measure standards
It involves collecting and analyzing data to assess how well the organization is
achieving its strategic objectives. By setting clear actual standards and
measuring performance against them, an organization can ensure that it is
making progress toward its goals and can quickly adapt to any issues that arise.
4. Compare actual performance to standards
It is a critical step in the performance evaluation process, where the outcomes of
an organization’s activities are measured against pre-established targets or
performance standards. This comparison helps to assess whether the
organization is meeting its strategic objectives, and if not, where improvements
or corrective actions are needed.
5. Determine the reasons for the deviation
When actual performance deviates from the established standards (either
positively or negatively), it is important to understand the root causes of these
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 deviations to take appropriate corrective actions or capitalize on successful
strategies.
6. Take necessary corrections
It involves adjusting activities, strategies, or processes that are misaligned with
the organization’s objectives. This is done by identifying the reasons for
deviation, setting clear corrective actions, implementing changes, and monitoring
their effectiveness. It’s an ongoing process of refining the approach to ensure
that organizational goals are achieved. By constantly realigning activities with
strategic objectives, organizations can improve performance and adapt to
changing conditions effectively.
These stages form a continuous feedback loop, ensuring that strategies remain
relevant, adaptable, and effective in achieving the organization's objectives.
c) Importance of Strategy Evaluation and Control; (10 points)
The Importance of Strategy Evaluation and Control lies in ensuring that an
organization’s strategy remains effective, relevant, and aligned with its long-term goals.
Strategy evaluation and control help organizations measure progress, identify potential
issues, and adjust stay on course. This process is essential for adapting to changing
environments, improving performance, and achieving desired outcomes. Moreover, it
helps to keep a check on the validity of a strategic choice and provide feedback on the
continued relevance of the strategic choice made during the formulation phase. This is
due to the efficacy of strategic evaluation to determine the effectiveness of strategy.
First, it ensures Alignment with Organizational Goals as it ensures that the
organization’s actions are aligned with its long-term vision and objectives. It does that
by evaluating the effectiveness of strategies, organizations can ensure they are moving
toward the right goals and objectives. It also facilitates adaptation to changing
environments by allowing organizations to monitor internal and external factors that
could affect the strategy’s success. Moreover, it promotes continuous improvement
through regular evaluation and control help organizations identify areas of improvement
and refine their strategies for better performance. It also enhances decision making as it
provides data and insights that inform better decision-making. Furthermore, it improves
resource allocation as it helps identify whether resources are being utilized effectively
and efficiently. Lastly, it encourages long-term success and sustainability by ensuring
that strategies remain relevant and effective over time.
2) Strategic Human Resource Management (HRM) involves a future-oriented
process of developing and implementing HR programs that address and solve
business problems and directly contribute to significant long-term business
objectives. HR management was once primarily an administrative function
focused on day-to-day responsibilities such as employee recruiting and selection
and managing employee benefits. Changing labor market conditions and new
business thinking call for HR business strategies, including recruiting and
retaining the right people and providing ethical and cultural leadership. Discuss
briefly the Strategic Functions of Human Resources by focusing on the following:
a) Functional Framework of Strategic Human Resources (10 points)
The Functional Framework of Strategic Human Resources (HR) refers to how human
resource management (HRM) practices are aligned with and support the overall
strategic goals of an organization. This framework emphasizes the role of HR in driving

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 the achievement of organizational objectives through effective management of human
capital. It ensures that HR policies, practices, and functions are integrated into the
broader business strategy to create a competitive advantage, improve performance,
and achieve long-term success. Below is a figure representing the functional framework
of strategic human resources.

STRATEGIC
HR TECHNOLOGY ALIGNMENT
AND ANALYTICS
Aligning HR strategy
Using technology and with organizational
data analytics to goals.
optimize HR functions.

EMPLOYEE
RELATIONS AND
COMMUNICATION STRATEGIC HUMAN
Ensuring positive RESOURCE PERFORMANCE
employee relations FRAMEWORK MANAGEMENT
and effective
Aligning employee
communication.
performance with
business objectives.

ORGANIZATIONAL
CULTURE AND COMPENSATION
EMPLOYEE AND REWARDS LEARNING AND
ENGAGEMENT: STRATEGY DEVELOPMENT
Building a culture that
supports the strategy Designing Providing continuous
and enhances compensation development to meet
employee structures that support changing business
engagement. motivation and needs.
retention.

b) Work Design for Strategy Formulation and implementation (10 points)

Work design refers to the process of defining the tasks, roles, and responsibilities
necessary for achieving organizational objectives. In the context of strategy formulation
and implementation, work design plays a crucial role in ensuring that the right people
with the right skills are in the right positions to execute the company's strategic goals
effectively. Work design involves organizing and structuring work in a way that supports
the company’s strategy and fosters employee motivation, engagement, and efficiency.
Strategy formulation refers to the process of developing a plan or set of actions
designed to achieve the long-term goals and objectives of an organization. Strategy

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formulation is the first step in the strategic management process and lays the foundation
for implementation and control.
Strategy implementation refers to the process of putting a formulated strategy into
action. It involves translating the strategic plans into specific, actionable tasks and
ensuring that the necessary resources, structure, and systems are in place to achieve
the goals set out in the strategy. While strategy formulation focuses on setting the right
direction, strategy implementation is about executing the plan effectively and making
sure the organization’s activities align with the strategic objectives.
STRATEGY FORMULATION STRATEGY
IMPLEMENTATION

Strategic Analysis
(SWOT/PESTEL) Strategy Chosen

Mission, Vision, and Values

Clarification Organizational Alignment

Setting Specific Objectives Resource Allocation

Communication
Generating Strategic
Alternatives
Action Plans
Evaluating and Selecting
Alternatives

Formulation of Strategy Monitoring

Resource Allocation
Adaptation

Strategy Communication

c) Why is Job Analysis critical in recruitment and selection? (10 points)

Job analysis is the practice of gathering and analyzing details about a particular job,
such as responsibilities, day-to-day duties, hard and soft skills, qualifications, education,
expected outcomes, interaction, performance standards, work conditions, physical
abilities and supervision. Job analysis is commonly used to develop job descriptions,
but the data has other uses too. Job analysis allows organizations to analyze details,
such as duties, skills and qualifications, about a particular job. It is the process of
systematically gathering, documenting, and analyzing information about a job’s duties,
responsibilities, necessary skills, outcomes, and work environment. This foundational

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HR tool is crucial in recruitment and selection because it ensures that the right
candidates are chosen for the right positions.
Using job analysis, it helps the organization identify key job responsibilities, creates a
clear job description, facilitates performance management and training and improves
job retention and job matching. Job analysis is a cornerstone of effective recruitment
and selection. By providing a detailed understanding of the job requirements,
responsibilities, and necessary qualifications, job analysis ensures that the recruitment
process is both efficient and effective. It helps recruiters and hiring managers find
candidates who are well-suited for the job, aligns the selection process with legal and
ethical standards, and supports the long-term success of the organization. By improving
the match between candidates and roles, job analysis not only enhances recruitment
and selection but also boosts employee performance and retention.
3) Crafting Strategy is the strategy development process and how strategies get
made. Strategic Management analyzes the significant initiatives a company’s top
management takes on behalf of owners, involving resources and performance in
internal & external environments and crafting a strategy to achieve the objectives
and more the company along the strategic course that management has charted.
Henry Mintzberg states managers are craftsmen, and strategy is their clay.
Discuss briefly the significance of crafting strategies by focusing on the following:
a) Factors to consider in Crafting Strategies (10 points)
Michael Porter, a renowned authority on competitive strategy, outlines key factors to
consider when crafting strategies. These factors are foundational to his well-known
frameworks, such as the Five Forces Model and the Value Chain Analysis. According to
Porter, organizations need to consider various internal and external elements to achieve
a competitive advantage.
Intensity of Rivalry Among Existing Competitors: High rivalry can lead to price wars
and reduced profitability. Rivalry intensifies when there are many competitors, low
differentiation, or slow industry growth.
Bargaining Power of Buyers: Buyers’ ability to drive prices down or demand higher
quality affects profitability. Buyers have more power when they have alternatives or
when the products are undifferentiated.
Bargaining Power of Suppliers: The power suppliers hold over an industry depends
on the number of suppliers, the uniqueness of their product, and the cost of switching
suppliers.
Threat of Substitute Products or Services: The presence of alternatives that fulfill the
same need can limit profitability.
Threat of New Entrants: The ease with which new competitors can enter the industry
affects an organization's strategic position. High barriers to entry (e.g., capital
requirements, brand loyalty, patents) can protect established players from new
competition.
In addition to the five competitive forces, the impact of various stakeholder groups (e.g.,
customers, employees, suppliers, regulators, shareholders, and communities) plays a
role in shaping business strategies. While stakeholders are not traditionally included in
the original Five Forces model, their influence on competition and the organization’s
long-term success is significant.
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These factors involve analyzing the competitive forces in the industry, understanding
the organization’s unique position, and developing a strategy that leverages the
company’s strengths. The strategies must be built on clear differentiation, cost
leadership, or focus, while considering the dynamics of the external environment and
internal value chain. By carefully evaluating these factors, organizations can create
sustainable competitive advantages that enable them to thrive in competitive markets.
b) Characteristics of Strategy making (10 points)
Strategy making is a complex, dynamic process that involves setting long-term goals,
determining actions to achieve them, and aligning resources with those goals. Several
characteristics define effective strategy making, and these traits reflect both the
intellectual rigor and practical aspects of the process. Here are the key characteristics of
strategy making:
Strategy is action-oriented
These characteristic highlights that strategy is not just a theoretical or abstract concept
but is about taking concrete steps to achieve the organization’s goals and objectives. It
involves a series of actions that are designed to put the plan into motion and drive the
organization toward its desired outcomes.
Strategy evolves over time
Strategy making is not a one-time event. It’s a continuous, evolving process where
strategies are updated and refined in response to internal and external changes in the
business environment.
Strategy is a never-ending, ongoing task
This characteristic highlights the dynamic nature of strategy. Strategy is not a one-time
event but rather a continuous process that evolves over time in response to both
internal and external factors. Organizations must consistently review, refine, and adapt
their strategies to ensure long-term success.
Meaningful strategy is time and output-oriented
This characteristic emphasizes that for a strategy to be effective, it must be aligned with
clear timelines and focused on measurable outcomes. Both time and output are critical
components that ensure a strategy leads to concrete results.

Strategy requires the participation of all parties

The involvement of all stakeholders is crucial for the successful formulation, execution,
and monitoring of a strategy. A collaborative, inclusive approach ensures that strategies
are well-rounded, properly implemented, and continuously adjusted to meet
organizational goals.
c) What should be done in Crafting Strategies? (10 points) and
Crafting strategies is a crucial process for any organization, as it defines how the
company will achieve its long-term goals and navigate the competitive landscape. The
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process of crafting strategies involves a combination of analysis, decision-making, and
planning.
The first step in crafting a strategy is to clearly define the organization’s long-term
vision, mission, and specific objectives. This involves understanding what the company
ultimately wants to achieve, such as increasing market share, expanding into new
markets, or improving profitability. The second step is to assess the organization's
internal strengths, weaknesses, resources, and capabilities. This includes analyzing the
company’s financial position, workforce, technology, and operational processes. Then,
an organization can identify key opportunities and threats based on the analysis. Once
the company has a good understanding of its current position and the external
environment, it should consider various strategic options. These options may include
cost leadership, differentiation, market expansion, innovation, or strategic alliances.
After considering the available options, the next step is to choose the most suitable
strategy that aligns with the organization’s strengths, market opportunities, and overall
goals. This step should also consider the resources available and the organization’s
ability to execute the strategy effectively. Any strategy will involve risks, and it’s
important to anticipate potential obstacles or changes in the market. Risk management
is a critical step in crafting a strategy to ensure the organization can adapt and stay on
course even if challenges arise.
Crafting strategies involves a comprehensive approach that blends analysis, creativity,
decision-making, and continuous adaptation. By following these steps—defining clear
goals, conducting analysis, considering strategic options, selecting the right strategy,
and ensuring that resources and actions align—organizations can create effective
strategies that drive success. Additionally, by involving stakeholders and monitoring
progress, companies can ensure that their strategies remain flexible and relevant in a
constantly changing business environment.
d) What challenges do organizations face when Crafting Strategy? (10 points)
When crafting a strategy, organizations face a variety of challenges that can hinder the
successful development and implementation of their strategic plans. These challenges
stem from both internal and external factors, and they require careful consideration,
adaptation, and problem-solving. Below are some of the key challenges that
organizations encounter during the strategy formulation process:
Uncertainty and Complexity in the External Environment
The business environment is constantly changing, with factors like market trends,
technological advancements, economic conditions, political instability, and competitive
forces.

Internal Resistance to Change

Employees, managers, and even leadership can resist strategic changes due to fear of
the unknown, comfort with existing ways of doing things, or concerns about personal job
security. Resistance can hinder the implementation of new strategies and prevent the
company from adapting effectively.
Lack of Clear Direction and Goals

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Without a clear vision, mission, or defined objectives, crafting a strategy can be
challenging. Organizations may struggle to define where they want to go and how to get
there, leading to confusion and lack of alignment.
Limited Resources
Crafting and executing strategies often require significant financial, human, and
technological resources. Small or resource-constrained organizations may struggle to
secure the necessary resources to implement their strategies effectively.
Inadequate Data and Information
Crafting an effective strategy requires access to accurate and timely data. However,
organizations often lack the necessary information about market trends, customer
behavior, competitor strategies, and internal performance to make informed strategic
decisions.
Misalignment Between Strategy and Organizational Culture
Even if a strategy is well crafted, it may fail if it does not align with the organization’s
culture, values, and established ways of operating. This misalignment can cause friction
between strategic goals and the behaviors or attitudes of employees.
Overemphasis on Short-Term Goals
Many organizations are under pressure to deliver short-term results, which can lead to a
focus on tactical goals rather than long-term strategic objectives. This can prevent
organizations from making the bold, long-term decisions needed for sustainable growth.
Crafting an effective strategy is a complex and challenging process that requires careful
analysis, planning, and flexibility. Organizations must overcome various obstacles such
as uncertainty, internal resistance, resource limitations, and data gaps. By recognizing
these challenges and implementing proactive solutions such as involving stakeholders,
aligning with organizational culture, focusing on long-term goals, and maintaining
flexibility companies can create strategies that are both effective and adaptable to
changing conditions, setting themselves up for long-term success.

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